Have you received a letter stating increase on interest?

july73

Hi

I'm new so please forgive me if already posted.

I was gobsmacked yesterday to get a letter stating my interest rate on my credit card is going up:eek: :mad: How can this happen when interest should be going down................ Or did I miss something:rolleyes: I have a virgin credit card and apparently from chit chat at school this morning someone said it was on the news that all MBNA cards will be having a interest increase. Some people are claiming the minimum payment will be doubled because of it:eek:
OMG we are struggling to pay minimum at the moment and have not had any luck in doing a 0% balance transfer. We just keep getting offers of having yet another card standard interest rate, Which of course we don't want:rolleyes:

Has anyone else had this?

IWantToBeFree_2

Unfortunately credit cards are not based on BOE base rates, so even though they are going down, its unlikely that your credit card interest will follow suit.

You signed a variable credit agreement, so whether it appears fair or not, MBNA are well within their rights to increase their rates.

As it happens, we have 2 Virgin cards and my interest rates haven't increased.

july73

IWantToBeFree Aha I did miss something:o Oh well bang goes the extra £30 a month I was planning to overpay after some serious budgeting:rolleyes: I think I will have to get some other plan in to action fast.

As for the interest rate not going up on your cards. It doesn't happen until Jan. So sorry to say..........But I'd be very surprised if you don't get a letter too in the next few weeks. I wouldn't wish this on anyone:(

ceefercat

I had a letter in September from MBNA telling me that my interest rate was going up from 16.9% to 26.9% :mad: :mad: I've since applied for a Capital One card with 0% balance transfer but been refused. I've got my credit reports from Experian and Equifax and can see nothing wrong - I haven't missed a payment, several of my cards and loans have been settled and I gave correct figures for the cards I wanted to transfer. I was quite hopeful after doing the credit scoring test on here so I was disappointed to say the least when I was refused. So I'm stuck with this dreadful rate, I'm really angry about it and all I can think is thank goodness my other card companies haven't done the same, although I think the fact that MBNA dumped my AOL card may have someting to do with it as the rate hike came shortly after a letter telling me that they were discontinuing their association with AOL

exel1966

As said above re variable rates, but your rate increase won't necessarily apply to ALL as card companies can move rates on an individual or group basis is they so wish depending on account management.

There maybe some light for some :-

http://money.aol.co.uk/mandelson-warns-credit-card-firms/article/20081126040409382733459

'Lord Mandelson and Mr Thomas will discuss complaints about irresponsible practices and a failure of credit card firms to pass on interest rate cuts at the summit'

clio

how much did it go up by?? also been on news this morning Credit card companys and practices like this may get reported to the OFT.

" Speaking on GMTV, Lord Mandelson said he was not saying that all credit card lenders were guilty of bad practice. - The problem is that some of these changes are being made so abruptly that borrowers get caught out. The government says it has examples of lenders increasing their rates by 10% overnight, just one aspect of bad practice the government wants to eliminate."

http://news.sky.com/skynews/Home/Business/Credit-Card-Summit-Government-Demands-Fairer-Treatment-For-People-Struggling-With-Debt/Article/200811415161767?lid=ARTICLE_15161767_CreditCardSummit:GovernmentDemandsFairerTreatmentForPeopleStrugglingWithDebt&lpos=searchresults

july73

ceefercat wrote: »

I had a letter in September from MBNA telling me that my interest rate was going up from 16.9% to 26.9% :mad: :mad: I've since applied for a Capital One card with 0% balance transfer but been refused. I've got my credit reports from Experian and Equifax and can see nothing wrong - I haven't missed a payment, several of my cards and loans have been settled and I gave correct figures for the cards I wanted to transfer. I was quite hopeful after doing the credit scoring test on here so I was disappointed to say the least when I was refused. So I'm stuck with this dreadful rate, I'm really angry about it and all I can think is thank goodness my other card companies haven't done the same, although I think the fact that MBNA dumped my AOL card may have someting to do with it as the rate hike came shortly after a letter telling me that they were discontinuing their association with AOL

So similar to my situation. Tried to balance transfer to Capital one and refused. So I'm stuck too. No reason why, my credit scores not bad either just one late payment.............So Frustrating :mad:

Loyalty

Have you called to ask if it can be reduced?
In certain circumstances we can lower the rates.

Things to take into account.
How is your account run? have you defaulted in the last 12 months?
Have you defaulted elsewhere? remember a regular silent check is run to see if your are a risk.

I say this on every call, if your unhappy or unsure about anything on your account call in and ask. if your polite and patient we ( I ) will do as much as possible for you.

july73

Loyalty wrote: »

Have you called to ask if it can be reduced?
In certain circumstances we can lower the rates.

Things to take into account.
How is your account run? have you defaulted in the last 12 months?
Have you defaulted elsewhere? remember a regular silent check is run to see if your are a risk.

I say this on every call, if your unhappy or unsure about anything on your account call in and ask. if your polite and patient we ( I ) will do as much as possible for you.

Many thanks Loyalty and I wish you'd answered my call. Basically they wouldn't even discuss it. Told I have to pay the payment and that's it as I've been paying £5 off my balance with £115 a month by Direct Debit, (so no late payments etc). How that had anything to do with it I'm sure. I asked if they could help bring the minimum payment down with maybe an offer of a 6mths at 0% as I wanted to try and sort things out rather than bury my head in the sand and end up not being able to pay in the future.

The first lady I spoke to was very adamant that they could help. Then she put me through to the correct dept and hay presto told to sod off and just pay the bill or else I will end up with a CCJ. :mad: Of course not actually told like that but may as well of done:rolleyes: I don't do rude unless someones rude to me that is. So that wasn't the problem. Sorry to say but they just didn't want to help.

I hope some people have better luck than me. But on a high note it has forced us to take stock of all our debt. I'm pleased to say that we have been offered a unsecured loan with Black Horse Finance which will pay off both credit cards. The repayment will be £10 less if not more after Virgins increase per month. Better still it is only over 5 years. So very happy with that.
Yipeeeee debt free in 5 years. :j estimated time on the credit cards 67 years:eek:
Other things were repayment breaks and most important you can pay off extra at any time to reduce interest and term.

methusala_2

hi loyalty'

Great you saying we can help. Sorry if i take that with the proverbial pinch of salt, if one has been a loyal customer for years and never defaulted and made the company quite a reasonable profit in that time it seeems to count for 0. Your rate will be doubled at the drop of a hat and all the creeping you do at best gets a slight reduction in the rate hike or a delay. People are getting fed up with rate hikes just because the company CAN and sod the customer

july73

methusala wrote: »

hi loyalty'

Great you saying we can help. Sorry if i take that with the proverbial pinch of salt, if one has been a loyal customer for years and never defaulted and made the company quite a reasonable profit in that time it seeems to count for 0. Your rate will be doubled at the drop of a hat and all the creeping you do at best gets a slight reduction in the rate hike or a delay. People are getting fed up with rate hikes just because the company CAN and sod the customer

I agree totally. Loyalty may be one of very few who is sympathetic and will try to help. But sadly everyone we have spoke to will not even consider anything mentioned.:rolleyes: Sorry Loyalty but despite your sympathy that is all you can give. These companies have hiked interest rates to line their own pockets and left us consumers high and dry :mad: and according to panorama they were the ones who gambled and helped get us all in to this mess.............didn't they?