Can MBNA increase the Interest rate to ridiculous 34%?

YorkshireBoy

YorkshireBoy wrote: »

Don't know who you've been speaking to already, but give their customer loyalty department a ring on 0800 783 1116 (during office hours).

What did they say?

emma12345

I also had this problem with an MBNA A&L card. It started as a 17% card followed by lots of 0% offers until before I knew it I was at my credit limit with a debt of £7K and MBNA then raised the APR to 30%.

Following advice from the lovely people on this board I phoned A&L, asking that as I had no missed or late payments why was the rate so high and could they reduce it. They said they could and reduced it to 23%, slightly better.

The not so good news is that a few months later for no apparent reason they upped it back to 30% again!

It does seem crazy that when the bank base rate is at 2% they are allowed to change the APR to 30% when nothing else has changed in the account. To me it's behaving like a loan shark.

Sorry I can't be more helpful OP. I will try complaining just to be sure the relevant authorities are aware of the issues, it might help, however TBH as the contract says variable interest rate I'm not sure anything can be done.

For me I'm able to take on another job to reduce this debt. Also I'll transfer as much as I can to other cards I have over time.

Hope you get somewhere with this.

madhusudhan

YorkshireBoy wrote: »

What did they say?

They said - "Sorry we can't do anything"

MRSTITTLEMOUSE

I just don't understand MBNA,I have both an A&L card and a Virgin one.They both keep increasing my credit limit(6k & 9k) which I never use for more than a couple of hundred pounds at a time.In the past couple of weeks not only has my limit been upped but my A&L card has had the interest dropped to just over 15% and I have been given 0% interest on purchases till June next year.I was also sent 7.9% life of balance cheques for Virgin.What are they playing at.

latecomer

They are trying to get you to spend on your card. Pretty obvious isn't it?

SpongeBob_NoPants_2

madhusudhan wrote: »

Can MBNA increase the Interest rate to ridiculous 34%?

Yes they can, it's a variable rate and decided by your risk profile (in part).

Doublespresso

I heard of many similar cases. In many cases the customer has never missed a payment and generally deemed to be a good risk, hence the increase in credit limits and 0% promotions etc.

The problem is that the so called "variable" rate is determined individually for each customer AND the rate is decided subjectively, entirely by the banks (they say it's determined by the "risk" assessed - yeah, right)

IMHO, all these dubious practices employed by the banks should be deemed as unfair and will eventually be challenged by consumer groups and WILL stop - eventually.
In the meantime banks will try to rake in as much profits as possible out of the misery of decent, honest, albeit vulnerable, people, while they still can.

This is no different from mis-sold policies, endowments, unfair charges, extended warranties etc and many many other practices that at the time were the norm and looked reasonable and proper.

The truth is that banks are literally encouraging (pushing) people to fall into a debt trap, with no way out. This is no different from encouraging gambling and even drug pushing.

you may think my point of view is radical, but when you come to know how cold and calculating some of the banks' strategies are, you will be truly appalled.

normanmark

Doublespresso wrote: »

but when you come to know how cold and calculating some of the banks' strategies are, you will be truly appalled.

I don't know why you're building it up to be this uncovered thing. Banks exist to make money, not as a public service. The sooner people realise this then the sooner they can play them at their own game!

yorkshireman08

normanmark wrote: »

I don't know why you're building it up to be this uncovered thing. Banks exist to make money, not as a public service. The sooner people realise this then the sooner they can play them at their own game!

When billions of pounds of tax payers money has been put in place to prop up the banking industry I think you'll find the playing field has changed.

Back to topic - If you don't accept the interest rate can't you have the account closed pending full payment at the old interest rate ???

MBNA have written to me. My interest rate has gone up to 34.9% on a Leeds United account which has been closed pending payment because of MBNA and the affinity group no longer deal with each other.

Before you all start saying my credit rating is bad - Halifax have increased my credit limit by a £1000 last week.

Trouble is I can't transfer the balance because technically the account has been closed pending payment.

Doublespresso

normanmark wrote: »

I don't know why you're building it up to be this uncovered thing. Banks exist to make money, not as a public service. The sooner people realise this then the sooner they can play them at their own game!

So are Casinos.

You're missing the point here, banks are preying on the most vulnerable of clients who are also deemed profitable to them. These are usually honest, hard working people who will do anything to keep up payments etc. - unlike the ones identified as purely "bad risks".

The tragedy is that Bnaks actively identify these "profitable borrowers" and then even more actively apply clever strategies to make them fall into the debt trap.

If enough people take action, consumer groups and the Governemnt will take action. The sad thing is that in this country everything is done "after the event", when often its too late for many.