MBNA : Minimum payment rise?

Spark

I have an MBNA Reward card, I haven't used it for a few months, but I have a promotion stating that anything bought in november and december will be at 0.0% p.a until the may 2009 statement date, so I've started using it again.
I remember that the minimum payment in july was £10.
Now it seems that they are asking for a minimum payment of £25.
It seems a big rise, not a problem for me, but I wonder why such a big rise and if it's happening across the board, I don't seem to have such payment rises with my other credit cards.

ICan'tStandIt

A friend of mine has had his Halifax credit card minimum payment reduced to 1%.

It barely covers the interest.

Credit cards should have a decent sized minimum payment, so I think MBNA are right to raise it.

xplora

Spark wrote: »

I have an MBNA Reward card, I haven't used it for a few months, but I have a promotion stating that anything bought in november and december will be at 0.0% p.a until the may 2009 statement date, so I've started using it again.
I remember that the minimum payment in july was £10.
Now it seems that they are asking for a minimum payment of £25.
It seems a big rise, not a problem for me, but I wonder why such a big rise and if it's happening across the board, I don't seem to have such payment rises with my other credit cards.

It used to be £25 since i applied the card (2007), but they reduced to £10 this year and recently, they decided to revert back to £25.

gazza975526570

ICan'tStandIt wrote: »

A friend of mine has had his Halifax credit card minimum payment reduced to 1%.

It barely covers the interest.

Credit cards should have a decent sized minimum payment, so I think MBNA are right to raise it.

What about people that are stoozing?

YorkshireBoy

MBNA had a mixture of minimum payment options across their cards...£5, £10, £25.

They then took the LESSER of 2.25% and 'interest + PPI + fees* + charges + £5/10/25' (as appropriate to the card).

Over the last year or two they started to bring everyone into line on £25 and then in September this year changed the wording to the GREATER of £25 and 'interest + PPI + charges + £5'.

It's still a good bit less than other cards, so you should pay more wherever possible (unless you have a 0% or other low rate of course and/or you're snowballing or you're stoozing).


* They've removed fees (ie BT fees) from this calculation now, meaning even the first minimum payment following a BT is only £25.

ICan'tStandIt

gazza975526570 wrote: »

What about people that are stoozing?

What about them ? They'll just have to pay a bit more.

realaledrinker

Stoozing is alive & well at MBNA!

Just tonight sorted out my latest stooze on a Virgin Atlantic card (replacing the one I cancelled a couple of months ago as they wouldn't give me a deal)

£21,600 @ 95% to my current account for the best part of 7 months, £25 min payment. £50 fee.

Thanks very much Mr. Bernanke!

nomoneytoday

Higher minimums are better in the long term. Some of these rate encourage people to take 40-60 years to pay back debts !

( Stoozers aside that is )

Spark

As I said, it doesn't bother me, I usually pay back more than £25 every time, whatever the minimum payment is.
But, if they change the minimum payment from £10 to £25, I can see that some people will have difficulties to be able to pay it.
Especially now, when people are more and more squeezed moneywise.

It's still a good bit less than other cards

I have a few other cards, the minimum payment is far less on all of them, that's why I was wondering if other cards will follow suit.
What other cards are charging more?

keek

Just been caught out by this. Been paying £10 minimum payment for 3 months on 0% 'til Feb. Just received statement with £12 charges + interest and note stating I've broken contract so will have to pay interest on balance. Contacted MBNA yesterday Very unsympathetic and they stated a change of terms letter was sent out in June. I don't apear to have received this. Spoke to them today and after 10 minute wait on phone they finally found a copy which they are posting to me. Asked when this increase came into force and was told they couldn't tell me. Have spent points earned, paid off balance and cancelled card! No more MBNA for me!:mad:

Spark

Yes, that's another thing. If you are paying by DD and you pay less than £25, without being told by MBNA, you get in trouble. Which is unfair.
I keep all correspondence from MBNA, and never had a letter from them to tell me of the changes.
I check my statements every week as I am not paying by DD, but I guess that the ones paying by DD just don't check their statements as often, secure that the payment will be made.