Can MBNA increase the Interest rate to ridiculous 34%?

Steve1963

Just been through this. My A&L card has risen sharply since MBNA took over. Last month they wrote and said it was going up to over 30%. I rang them and said, basically-I'm very unhappy, this is too much and if they go ahead I'll transfer the balance somewhere else. They offered to keep my existing rate for another six months-just long enough for me to transfer it anyway. Stuff them!

Only worry now is my Liverpool Victoria card has just been taken over by them so I expect that will go silly next

Steve

NickX

dankosheemo wrote: »

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!'

There lies your problem. Whilst MBNA believe you will keep paying 34.9% they will go on charging that much because it is in their interests to do so.

Perhaps if you had just said, "No I can't afford it" then they may have been more willing to reduce the rate.

Others have succeeded in getting the rate lowered so all is not lost.

Good Luck.

dankosheemo

Thanks Nick!

I mean the guy said he could see what he could do but had to do a further credit check i.e. what other credit cards I've got, loans etc which then led to his conclusion of I could afford it. I explained to him other costs such as petrol, food bills and such but he said there wasn't anything further he could do. Bandits a tell thee. I'll keep trying though and may be there will be some ruling somewhere one day or I don't know

On the up side, I cashed in £99 of loose change this morning - on the credit card we go! :j

YorkshireBoy

dankosheemo wrote: »

...<snip>...

Try retentions (customer loyalty) on 0800 783 1116 during office hours. Tell them you think you've already had a search made by them, and ask if they'll do an unrecorded search if they MUST search you again.

The credit search is a double edged sword though. They will see all your other borrowings, and that could increase their (perceived) risk in continuing to extend credit facilities to you...meaning they still won't reduce the rate. You can't win!

kirstyanne57

I have a Virgin card and knew the interest had gone up on mine to 27.9 %, I didnt challenge them, I literally just aimed to pay them back and get rid of the thing.
Still getting no where fast, like 3 quid a month off the balance, I realised I was still paying 8 quid a month for payment protection so thought I'll ring them and get shot of that, ever penny helps.

The lady at MBNA obviously wanted to know why, I went through to the insurance bit so was pretty sure they would attempt to talk me into keeping it. I told them that the 8 quid would make a difference, however small considering how much they had raised the rate. she put me on hold and came back knocking 10% off the interest. I am happy that they have but she couldnt give me an explanation into the hike except 'we are reviewing all our accounts' - heard that many times on another forum.

I may be grateful for my interest drop which lets face it will probably go up again but I have heard so many awful things in forums about what they have done to other customers, letters, threats, telephone calls that I really can not wait to get rid of it.

Anyway, if any of you have any payment protection on it, maybe try what I did, I didnt go there with the intention of a drop in interest but it seemed to work.

RobertoMoir

qw3rt7 wrote: »

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).

Balance transfers aren't the issue here from what I see of the thread, with people talking about them raising their credit limit and so they "have" to spend it 'cos its there, this is about using the credit card as a credit card, not a loan facility.

And IIRC even for credit transfers, I can't remember the exact text because it was a while ago I read martin's comments on credit cards, but I'm fairly sure he draws attention to the rate being whacked up once the introductory period is over and having to be a "card tart" as he puts it, or clear the transferred balance by then.

So either way, with all due respect, I'm not defending the likes of MBNA and their shoddy behaviour in the slightest, but people do have to take responsibility for their own actions as well.

Paulgonnabedebtfree

TighterThanTwoCoatsOfPain wrote: »

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!!

I've only just noticed this reply. First of all, thank you for your clarification of the legislation about this matter. It appears that MBNA (as expected) have remained within the law. Therefore, it is my belief that the law is at fault. I believe that there needs to be equal prominence given to what a *non typical* rate is likely to be if someone doesn't meet the company's profile of a good customer. Another matter is "Is the 66% rule actually checked?" Is there an overseeing body to ensure compliance because much of this stuff could hide behind data protection legislation. Presumably, aggregate figures could be allowed that doesn't contain information that can be tracked to an individual? Yet another matter is 66% of what exactly? They could easily manipulate the 66% on typical APR figure to be their lowest debtors. I might even be on their "typical rate" now that I've cleared my balances. Therefore 66% of credit agreements could easily equate to 10% of money owed. Sorry if I sound overly cynical about lenders (not just MBNA) but the way they massage their figures to stay within the law makes a mockery of having a Parliament at all (not that I'm particularly enamoured with it).

madhusudhan

After the complaints to MBNA and Ombudsman, MBNA has finally reduced my rate on Abbey card from 21.9% to 5.9% ! Oh boy, what a relief!

The 5.9% rate was the promotional rate in Jan 2007 and they said this would last until Feb 2008. They are not sure of the next interest rate going to be at the moment and asked me to call next week.

Thanks to all your MSErs for your continuous support!

Paulgonnabedebtfree

madhusudhan wrote: »

After the complaints to MBNA and Ombudsman, MBNA has finally reduced my rate on Abbey card from 21.9% to 5.9% ! Oh boy, what a relief!

The 5.9% rate was the promotional rate in Jan 2007 and they said this would last until Feb 2008. They are not sure of the next interest rate going to be at the moment and asked me to call next week.

Thanks to all your MSErs for your continuous support!

Be really cheeky and ask for it to be fixed for LOB. Bear in mind also that they did not have to do that for you. I'm wondering if it is an idea to say to these companies that their extortionate interest rates might eventually force you onto a DMP and that means that they might get a very low payment back. Have to be careful how you word it though in case they use such a statement to alert your credit file.
Glad to hear you have a decent result for now anyway.
I'm surprised I haven't heard from them lately. Probably about to slash my credit limits.

madhusudhan

My happiness didn't last for more than two days.

I called them today to re-check what I heard on Wednesday - well, it seems the lady who informed me about 5.9% rate reduction has given me wrong information!

!!!!!!s!