MBNA rate increase

zxqyu

Whilst I owe a lot of money, I otherwise have a very good credit rating (top of the top category according to Equifax). I have borrowed and fully repaid many loans and never made a late payment with any company.
A large proportion of the money that I owe is on credit cards. In order to decide who to pay back first, I've just phoned the various companies I deal with and had a nasty shock when I spoke to Virgin (MBNA). They had increased my interest rate from somewhere around 15% to 34.9%. Unknown to me I had been paying this interest on a £9000 balance for over 12-months. Unfortunately they had my wrong address (probably my fault) – so I hadn't been notified. They were however aware that my mail was being returned and did have telephone contact details.
When I spoke to them, thy immediately reduced my APR down to 24.9%. Whilst this is no bargain, it's preferable to 34.9%!
Have I been treated fairly here? If not, what can I do to get my interest back from Virgin (MBNA)?

Thanks,
Andy

CLAPTON

with very good credit rating why not apply for 0% BT CC or low life of balance cards
also considering reducing your debt levels

sammyjammy

You can't do anything to get the interest back, you admit that it was your fault they had the wrong address, if you had taken better care of your finances then you would have realised the hike in interest, take it on the chin and apy more attention next time.

zxqyu

CLAPTON wrote: »

with very good credit rating why not apply for 0% BT CC or low life of balance cards
also considering reducing your debt levels

Thanks for the reply.
The virgin was a low life of balance card 4 years ago.
Although I have a good credit rating in one sense (no late payments and long history), the amount that I owe will make borrowing more difficult.
If I was cynical, I would probably think this is why virgin more than doubled my rate (i.e. no choice but to carry on paying them).
I am in the process of reducing my debt levels (this is what prompted my phone around).

What I'm asking is - is there a case for recovering some of the interest paid? I've probably paid an extra £1000 interest when in the words of the customer service agent, "you're on a very high APR, you've been with us 4 years and never made a late paypment, you should be on a lower APR".

normanmark

There's no case for recovering the interest. Interest is a compound part of how credit cards work. Whilst unfortunate that the APR was increased, it was your duty to be on top of those things & to pull it up to the card company that you're not happy at the time they increased it, not months down the line.

YorkshireBoy

zxqyu wrote: »

The virgin was a low life of balance card 4 years ago.

You've either misunderstood it to be so, or you've somehow breached the T&C's and lost the LOB element, or you've spent on the card (and it's these purchases that are now attracting the higher interest until you clear the entire card balance).

...the amount that I owe will make borrowing more difficult.

And Virgin (MBNA) will know that, from their ongoing ad-hoc searches of your credit file.

If I was synical, I would probably think this is why virgin more than doubled my rate (i.e. no choice but to carry on paying them).

Cynicism doesn't come into it...it's a fact! They're now (possibly) perceiving the capital to be at risk, and so are increasing the revenue that you are capable of generating for them through the increased interest charged.

What I'm asking is - is there a case for recovering some of the interest paid?

Absolutely none at all. Your only hope now is a call to their customer loyalty department on 0800 783 1116 (office hours/Saturday mornings) to see what they can do in addition to what you've already secured - moving forward.

zxqyu

This is pretty much what I was thinking the case would be.
Unfortunately this was a card that I didn't use (got it for a balance transfer), had locked in a drawer and had a regular payment amount on (so didn't notice an increase in the payment amount).

Although I think there may be some argument on the basis that they knew my mail was being returned and they could have contacted me on my mobile to find out why if they'd wanted. If I was being doubly cynical, I would question the coincidence of them knowing that I'm not receiving their mail and them increasing my interest to 34.9%.

That said, I'll probably just have to take it on the chin like sammyjammy suggests. Lesson learnt - from now on, I'll assume that every lender is out to screw me.

CLAPTON

I think you are being realistic in lettting it lie.
however, the real lesson to be learnt (although I know little of your circumstances ) is to get out of debt and then interest rates won't matter.

normanmark

zxqyu wrote: »

from now on, I'll assume that every lender is out to screw me.

Not being funny but no lender is out there to be there for the customer. They're there to make money. Assumption for any banking company is to screw customers so they can make money. The easy way to combat this is by being on top of your finances.

clio

The thing is virgin want to shaft you more than any other credit card company. and tbh they are not that special are they! .. and they want to spend some of the "massive profit" they're making on training their staff better.