Can MBNA increase the Interest rate to ridiculous 34%?

u319489

MBNA are one of the most despicable companies in the modern capitalist world we live in
They hiked my rate from 16 to 31 per cent a few months ago
Now they keep sending me credit card cheques and sent me a letter yesterday saying as i was one of their valued customers they have increased my credit limit!!
Like vultures end of:mad:

madhusudhan

I have been thinking - can we bring the main companies such as Virgin, A&L and Abbey into account for what MBNA's unfair and irresponsible acts? I am sure those companies wouldn't like their brand names spoiled due to their credit card backstreet business partner.

I was not aware (I am fool, I admit) that all these cards were operated by MBNA until after a year or so!

My wife groans bitterly when ever she hears the company names such as Abbey and Virgin (including TV ads). This made me think that the name of the company may be spoiled.


Any ideas?

RobertoMoir

madhusudhan wrote: »

- 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!

Just because they raise the limit it doesn't mean you have to rush out and spend up to it.

MBNA might not be a very nice company, but they're not in business to be nice and if you repeatedly keep sticking your head back between the jaws of the lion then it isn't entirely the lion's fault when it eventually closes its mouth and bites you.

madhusudhan

Yes, it is my failing to use the facility and drown in the debt - no question of denial there. However, I didn't expect that they have a strategy to act/react to customers like me. I have learned my lesson albeit hard way!

milliemonster

It's not just A&L/MBNA that are at it though, Natwest are just as bad, my hubby's A&L interest rate is now up to 30% so we are overpaying that to get it paid off, transferred so much of it to an Egg card on 0% for 15 months and there is just over £2k left to pay now and then its finished with, however in the meantime, we got his Natwest card statement yesterday, this has a balance of £8.5k on it owing and each month the min payment is around £190, it always says the interest will be approx £120 if min payment arrives on time, it always does as we pay by DD.

I have checked this months statement though and the interest was £160 (not £120 like it said last month) we have had no letters saying the interest has gone up or anything and we phoned to query it, they first asked if we had paid on time which we did and then they just muttered some crap about t&c's and they'll send us a leaflet out. How on earth can they justify £160 interest after a payment of £190, so we have only paid £30 off the balance?

We are trying to pay off our debts and doing well but we can't overpay everything at once and if they all start doing this we are never going to get anywhere, don't they realise this?

qw3rt7

To those that keep suggesting it is entirely madhusudhans fault for using his available credit, i think you are missing his point slightly. I believe his point is the way you are enticed to use this limit by suggesting its CHEAP credit, eg offering a higher limit in conjunction to balance transfer deal. This gets prudent customers to transfer a balance thinking they are saving money, as suggested in this thread:

http://forums.moneysavingexpert.com/showthread.html?t=33

However, when the low rate ends, you find your dept to at a considerably higher rate than expected, and if you canceled your old cards in an attempt to improve your credit rating you are stuck, and in debt at a much higher interest rate than if you had left your debt on your old card(s).

Palm_Centro

Thanks for pointing me Jamalfatty .

madhusudhan

All

The petition to PM submitted few days back has been approved.

I posted a new thread here.

I would sincerely request you all to sign the petition as it may strengthen our case.

Thanks to one and all

Madhusudhan

dzug1

u319489 wrote: »

MBNA are one of the most despicable companies in the modern capitalist world we live in
They hiked my rate from 16 to 31 per cent a few months ago
Now they keep sending me credit card cheques and sent me a letter yesterday saying as i was one of their valued customers they have increased my credit limit!!
Like vultures end of:mad:

Then shred the cheques and don't use the increased limit

madhusudhan

dzug1 wrote: »

Then shred the cheques and don't use the increased limit

dzug1, not everyone wish to go grab money from credit cards UNLESS there's a need and sometimes urgency. At some point when you are looking for money for an unexpected expense, you may find those cheques/cards handy.