Can MBNA increase the Interest rate to ridiculous 34%?

YorkshireBoy

yorkshireman08 wrote: »

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

Yes, but that option is only generally available to customers who settle the account within a reasonable timeframe (60 days rings a bell).

madhusudhan

Doublespresso wrote: »

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.

This is what I am looking seriously - not that I can start a revolution but awareness.

I am sure there are lots who are genuinely falling into this trap by those greedy banks.

I am concentrating on raising an online petition to the govt as a first step. Any suggestions?

Please suggest me any more ways I can (with your help) raise/fight.

yorkshireman08

YorkshireBoy wrote: »

Yes, but that option is only generally available to customers who settle the account within a reasonable timeframe (60 days rings a bell).

Sorry your missing the point of my question. I'm sure with Capital One that if they increased the interest rate they gave you the option of having your account frozen at the old rate, but you obviously couldn't continue to use the card for credit, until it was finally settled.

YorkshireBoy

yorkshireman08 wrote: »

Sorry your missing the point of my question.

I understood your point perfectly.

Egg used to operate as I said earlier. You could remain on the old rate for a limited time only if you informed them in writing of your intention to settle within the requisite number of days (60 from memory?).

They now say, simply, "...this Agreement will continue until you have repaid all amounts you owe us", inferring the new rates apply until settled.

You are correct (do a degree) on Capital One. The specific text is as follows...

19. Variation

If we increase any interest rate or the margin over Base Rate, we may permit you to pay off the outstanding balance at the interest rate which applied before the increase takes affect. You will have to pay at least the monthly payment each month.

...which seems to say it's not so much a done deal; more at their discretion and based, presumably, on personal circumstances/debt charity involvement/etc?

realaledrinker

Suggest your main problem is the level of debt as much as your interest rate. Sounds like you need an Individual Voluntary Arrangement whereby you & your creditors agree to pay off a percentage of what you owe, meantime the debt is frozen.

I am not in any way qualified to advise, but free professional advice is available here:

http://www.cccs.co.uk/

Do NOT, under any circumstances, get involved with the many companies that offer to negotiate IVAs on your behalf.

madhusudhan

I have conacted Sion Simon MP with the above details expectng him to work with Govt and FO.

Read his message regarding the same here: http://www.sionsimonmp.org/2008/11/credit-card-lenders-must-stop-unfair-interest-rates-hike/

Thanks
Madhusudhan

madhusudhan

And to Bob Laxton - MP Derby

madhusudhan

And to Davind Hanson,MP Delyn

BikingBud

At a time when families are really struggling through this downturn

So people have just accrued 10-12K of debt in the last few weeks/months have they?

I would suggest not.

The days of endless stoozing are clearly coming to an end and the CC companies want some payback.

There are still ways to play the game but you have to accept, whichever way you approach it, that you are borrowing money and that comes with a cost. If you have no quick escape route then it might be very expensive.

BB

storminbalder

MBNA are loan sharks. They encourage paople into as much debt as possible, then turn on the screws.

MBNA business plan - to try and make as many people insolvent as they can before the years out.

I can't understand why people recommend them (this site included).