Can MBNA increase the Interest rate to ridiculous 34%?

madhusudhan

It's a game they play - prey being the money.

TighterThanTwoCoatsOfPain

Paulgonnabedebtfree wrote: »

As an addition to the above, I've just checked out MBNA's site. The only rate they mention that is above 30% is their American Express card. All the others are around the 15 - 17% mark. They seem to get around this by calling it the "typical" rate.
A good start would be to force such companies to give equal prominence to the rates that they ACTUALLY charge many of their customers.

Surprised that someone didnt pick up on this......

Errrrr they do... The new law has applied from 2004 (ish) with some of the key points on advertising APRs being


"All adverts offering credit must show a typical APR and this figure should be more prominent than any other financial information in the advert. In the case of on-line adverts the APR must be shown in characters at least one and a half times the size of the surrounding text."
"Another duty placed on businesses is that at least 66% of the credit agreements granted by them must be at or below the typical APR."


I'm sorry to say, but i know there are complaint and complaints on here about the nasty hikes some people are facing, but you are most definately the minority... same old problem, only the unhappy people bother posting which is what makes chance of getting an unbiased opinion of anything on the internet quite slim!!

jamalfatty

Palm_Centro wrote: »

Thanks for pointing me Jamalfatty .

Huh?

madhusudhan

Virgin has wrote back to me saying that they have received my complaint and Ombudsman request - they said they are investigating the matter with utmost priiority. The deadline they gave themselves to get back to is 5th January.

I will update you on the replay friends - I am not expecting anything different from usual blah..

overlander

I really would not bother with the goverment petiton they are the biggest credit junkies. Plus thats Gordons solution get out there and skelp your cards to the limit as he needs his miracle to last until the next election. What we are seeing is the after effect of zero legislation you really should not have been allowed to borrow so heavily on credit. As for MBNA the FSA should have clamped downn on massive increases cleary targeted on the most profitable and vurnable people. But maybe the useless fsa might grow some teeth now we are seeing the full effect of Gordons miracle economy.

My only advice is try and enter an IVA that way you win and the shysters at MBNA will only get pennys back.

YorkshireBoy

This may be of interest (if you'll pardon the pun!)...

MBNA response to the APACS/BERR Credit Card Summit Announcement

Palm_Centro

I heard of many similar cases.

madhusudhan

YorkshireBoy wrote: »

This may be of interest (if you'll pardon the pun!)...

MBNA response to the APACS/BERR Credit Card Summit Announcement

Thanks YorkshireBoy.

I'll give them a call to see what's their action plan to an existing debt prior to JAn 2009.

dankosheemo

OMG I thought I was the only person with the 34.9% Virgin Money hike!

I'm new to the forum - signed up this morning after reading through a few threads of people's queries and headaches. I think it's brilliant the support here through people's own experiences, handy hints and tips etc I will certainly be taking everything onboard!

I owe £3,500 on my Virgin card (my own fault - I like holidays and stalking bands...) so I NEED to take charge especially finding out I pay 34.9% interest! I fell off my chair when they told me! I didn't think it was possible!

I've spoken to Virgin this morning (spoke to three people actually!) about the ridiculous interest charges which I've raised with them time and time again. The chap asked whether I can afford the minimum payments of £84pm - I said 'well if it keeps carrying on like this then no I can't!' He did the whole credit check to see what he could do and told me there was nothing he could do as 'it was obvious' I could afford it. That's not the point! They should not be allowed to hike up the interest because you can afford to pay it! It'll get to the point where I can't! So basically you can ask but you pretty much need to be on your knees before they will do anything about your rates...

He did assure me that my interest rate wouldn't go above the 34.9% - comforting thought?

I'm just frustrated through no fault but my own and desperately trying to get sorted! I can't get credit anywhere and have another 3 cards to sort who's interest rates have also hiked up! Oow my head hurts

Anyone fancy being a voluntary accountant??

Lottery win would be nice!!

dankosheemo

OMG I thought I was the only person with the 34.9% Virgin Money hike!

I'm new to the forum - signed up this morning after reading through a few threads of people's queries and headaches. I think it's brilliant the support here through people's own experiences, handy hints and tips etc :T

I will certainly be taking everything onboard!


I owe £3,500 on my Virgin card (my own fault - I like holidays and stalking bands...) so I NEED to take charge especially finding out I pay 34.9% interest! I fell off my chair when they told me! I didn't think it was possible!

I've spoken to Virgin this morning (spoke to three people actually!) about the ridiculous interest charges which I've raised with them time and time again. The chap asked whether I can afford the minimum payments of £84pm - I said 'well if it keeps carrying on like this then no I can't!' He did the whole credit check to see what he could do and told me there was nothing he could do as 'it was obvious' I could afford it. That's not the point! They should not be allowed to hike up the interest because you can afford to pay it! It'll get to the point where I can't! So basically you can ask but you pretty much need to be on your knees before they will do anything about your rates...

He did assure me that my interest rate wouldn't go above the 34.9% - comforting thought?


I'm just frustrated through no fault but my own and desperately trying to get sorted! I can't get credit anywhere and have another 3 cards to sort who's interest rates have also hiked up! Oow my head hurts


Anyone fancy being a voluntary accountant??


Lottery win would be nice!!