Oh My God!!! 34% interest

eloma

Further to my last thread.. MBNA has moved me from zero % to 34% calculated daily on Feb 11.. I thought crime was illegal in this country.. On a 10K loan, I will pay around £10 a day, £290 pm 3300 per annum or more depending on how they calculate.. I will owe them 20K in 3 years if I pay only the minimum which I dont intend..

I called them and refuse to do anything on the interest.. I cant afford the interest.

I have been refused 8 personal loans and credit cards this last 2 weeks even though I have always had a clean record, no missed payment, salary coming in month after month

I have also been approached by a company called Monster Claims who claim to invalidate the card agreement, get my card balance written off and all interest and charges repaid. If somehow I repay my loan then I will not get a chance to do this. Has anyone done this. Does it work. Is it legal or is it a scam. All I want is a clean slate.

Are there any sources of advice or loan for people that have been turned down by high street lenders..

By sheer bad luck, I am -10K in debt which I can pay back in 12-15 months and I am unworthy of further credit and they dont lend to me. Bankers lose billions and wont be able to repay for years and we the taxpayer lent them money... But they are supposedly wiser than me and worthy of millions pound worth of bonus. Fail to see the logic here.:rolleyes:

Thanks for all your responses to my last post.. much appreciated

97trophy

eloma wrote: »

.. I thought crime was illegal in this country..

No crime there.

This is a direct response to the high number of CC defaults occurring.

jonesMUFCforever

''Sheer bad luck''.............we have all been there - its always somebody's else 's fault.
I can pay back in 12-15 month s- how is this then?

Stop applying for loans and cards - it will only make things worse.
Pop over to the debt free wannabe board, prepare a statement of income and expenditure and see where you can make savings to put towards your debts.
Can you sell something to raise cash through a boot sale or Ebay?

If you want a clean slate you will do well to avoid monster claims and concentrate on raising cash. They will simply empty your wallet further - if you think I'm wrong name me one person on this board who has been successful with their claim.

Robert_Sterling_3

This is a significant increase in the interest rate.
Take your custom elsewhere.

MABLE

Sorry this has happened but I do not believe MBNA would take you off a zero percent rate and put it up to 34 percent without very good reason. I am assuming you were on a promotional rate and perhaps that rate had finished hence the steep increase or you broke the terms and conditions and thats why the rate reverted to 34 percent.

I have been with MBNA for a few years and am always receiving zero percent offers and they have never increased that rate while the existing agreement was in force. Only at the end of that would I go to the variable rate. However I have always cleared the balance by then.

eloma

Thank you all for your response. Wasnt any positive advice here that I was looking for.

Robert
I wish I could take my custom elsewhere.. Nobody is offering me either a card or a personal unsecured loan at the moment although I have a very clean record so far

MABLE
My post was a continuation of another thread where I have exlained a bit of the background. I had a preferential rate and the preferential period just ran out... I was hoping to pay for it before the period.. That is not my point. The point is that it can go up to 34% and still be called legal

97Trophy
Just kidding.. It is offcourse legal and I have signed their agreement and have to pay

JonesMUFCForever
My mortgage has gone down drastically and I can keep aside 800-900 to pay for this card every month.. But it is the interest amounting to 300£ a month that will hurt as it will not be paying towards capital.. a 7-8% might be easier to absorb. And I have explained the circumstance in an earlier thread including breaking a leg, job loss, forced home improvement, etc .. A few things happened concurrently which has led to this. And I am not shirking blame.. I have the ability to repay if not for the horrendous interest.

The only reason for looking at Monsterclaim is not so as to shy away from my obligation.. but only because I am not able to find a reasonable alternative which I have been trying to identify since Jan. The banks cant lend to me because of their past imprudence which has brought them to their knees and stop them from lending. They just raised the bar from very low to so high that even I am now in a risky borrower category. Why is it that they are a safe risk to borrow money from me the tax payer and at the same time not safe for me to borrow a very very very small amount of money from them and I am not safe. Why are they holding backon all the money and not lending which will free up the money market and bring down rates.

97trophy

eloma wrote: »

Why is it that they are a safe risk to borrow money from me the tax payer and at the same time not safe for me to borrow a very very very small amount of money from them and I am not safe.

I don't mean to sound difficult but I want to state some important facts. MBNA are an American lender and they have not taken a penny of your money. Secondly, as has been said many times before credit is a privilege not a human right.

It is indeed a very tough time.

Good luck!

Robert_Sterling_3

jonesMUFCforever wrote: »

''we have all been there

I have not been there ...... yet.:eek:

withnell

What was the MBNA variable rate when you took the 0% offer out? I'd expect it was mid 20's plus - this is the way they make their money back on giving you it 0% for the past year!

Swans1912

withnell wrote: »

What was the MBNA variable rate when you took the 0% offer out? I'd expect it was mid 20's plus - this is the way they make their money back on giving you it 0% for the past year!

The 34% will also 'pay' for the couple of months 0% in which MBNA didn't earn a penny for your custom.

Richard_Cocks

Don't bother with "MonsterClaims", you almost certainly not be successful. Such action can work but very very rarely against large credit card companies.

Also you can basically do what they do yourself by asking MBNA for a copy of the original credit agreement, which they will happily provide you with. If they can't then there is a case that you don't have to pay back the money but it's very unlikely they won't have it.