Can MBNA increase the Interest rate to ridiculous 34%?

TighterThanTwoCoatsOfPain

Just an observation for the MBNA bashers...

cant say i can fault them myself... I have had 2 Virgin cards over the last few years... the most recent of which was opened this year at given a reasonably modest limit of £5500 and after my promotional rate of 0% ended i moved to 14.99% (roughly from calc'ing up from Monthly rate).

I notice from your history of rates that Virgin have always given you a comparably high rate from quite early on (unless they are just the very most recent changes?) There is obviously something about the profile they have built on you which triggers a higher rate, its not a lottery.

madhusudhan

TighterThanTwoCoatsOfPain wrote: »

There is obviously something about the profile they have built on you which triggers a higher rate, its not a lottery.

The only reason I can think of that I was close to the limits!

madhusudhan

All,

I am in a process of setting a blog column -http://unfaircards.blogspot.com

I wish to create an awareness about this issue.

These are the activities I have followed up till now:
- I have complained to MBNA
- I have asked Financial Ombudsman to investigate
- I have started writing to MPs and
- I will apply for an online-petition.
- Started a poll on the blog site to collect information

The reason for the blog is to carry this awareness amongst people like me. Obviously I can't carry such campaign on MSE.

I wish to prepare the notes on my day to day progress on this issue.

I must say you all MSEs are my beacons - my inspirators. I sincerely invite here or on the blog to participate.

I am not sure if I can stick the posts here from that blog, or vice versa. I would be happy if some one let me know if I am crossing my lines (have a strange feeling I am !)

M

YorkshireBoy

madhusudhan wrote: »

The only reason I can think of that I was close to the limits!

A second being you were only making minimum payments?

And a third being the sheer level of indebtedness you had with their organisation (£30K)?

And a fourth being the data they sourced/were fed monthly from the CRA's showing your other commitments (which doesn't show up as a search on your file)?

madhusudhan

YorkshireBoy wrote: »

A second being you were only making minimum payments?

And a third being the sheer level of indebtedness you had with their organisation (£30K)?

And a fourth being the data they sourced/were fed monthly from the CRA's showing your other commitments (which doesn't show up as a search on your file)?

- I was paying £500, £400, £300 respectively (well above my minimum payments)

- Ofcourse, third point duly noted

One intersting fact (and others have already pointed) is that they keep on increasing the credit limits (to draw you into a debt trap) even before I ask!

jonesMUFCforever

I have an MBNA card which is a clone of Alliance and Leicester - yes they give you high limits but they don't spend any money on these cards and will reduce the limits if you ask.
I got my limit reduced from £14k to £5k.

jamalfatty

madhusudhan wrote: »

All,

I am in a process of setting a blog column....snip

Someone else did this about a month ago, you realise your 'blog' is carrying adverts for MBNA?!

madhusudhan

Thanks for pointing me Jamalfatty - I have removed them. However, as you can imagine, I may have to run the site with ads - well, every little helps for paying my debt.

Ilian2008

Hiya, they did this to me as well, increased my limit from 4k, to 6k, then to 8k then to 10k at each stage offering me 0% deals for a few months and then bang 34%. Im ashamed to say i filled the card up and then had to sell loads of stuff to get it down to 8k and then managed to get a loan unsecured to pay it off but they wouldnt budge on the 34% and kept saying it was cos my credit history showed i had gone over my overdraft on my current account which is a whole other story

speedbird1973

The same people post the same opinions (me included) each time this thread appears.

They did the same to me, I was in a position to do something about it. Now I know what to do to get myself the hook, I have no qualms about dealing with MBNA. I know what will happen and I plan for it.

In the case of people increasing rates to 34.9% it could be any combination or single reason. I don't know and looking on here, there seems to be no sure reason why!!

Be aware of the risks, and enjoy the upsides.