Opt out of a credit card - advice needed

Sar

Hi all
I have a few credit cards and have thought I was finally in a position to start paying them off. However I got a letter the other day saying that a company was increasing my APR to 32.9% . They have tried to do this before but have always dropped it back down when I called them. This time they have said they will not do that but I can opt out and continue to pay the balance at my current rate providing I do not use the card and make at least my minimum payment. This seems like the best option but I am a little a concerned that they can contact me and ask for the outstanding balance within 60days. I called and they said there is no time limit to pay off the balance (even when I explained that f I only make minimum it will take about 40 years!) but I am not that trusting of this as they won't put it in writing. I don't know what to do for the best really! I can afford to 'overpay' the minimum and hopefully pay this card off in about 18 months. Any help would be much appreciated.
Thanks, Sar

jen_a_c

Can I ask which credit card company it is? Egg did this to me, attempted to put the APR up from 16.9% to 21.9% gave me the option of 'opting out' which I did as I don't have much on the card and rarely use it.

Sar

Its Virgin (MBNA). The card is very full (£4900 at last check!).

Sar

Bump... Any advice from anyone in the same situation or experience of it?

bert&ernie

The card industry has recently agreed to implement a set of "fair principles" that includes the right to "opt-out" of a reprice by closing your account and paying off the debt under the existing terms of the agreement. I've used inverted commas here because its not entirely clear what these terms actually mean. From what I understand, the industry was pushed into coming up with these voluntary "principles" at the end of last year by Mandelson's department - BERR. None of this is backed by any new legislation.

Its all a bit vague and hasn't been widely publicised - here's what I managed to find:
Guardian Story
BERR Press Release

Sar

Thanks bert&ernie. Have looked on MBNA's website but nothing much on there either. Think I will have to opt out and hope they don't demand instant repayment of the cc, because if I accept interest hike there is nothing to stop them doing the same again in 6months time, and then I won't be making as much of a dent in my balance by overpaying.
Thanks again

never-in-doubt

bert&ernie wrote: »

The card industry has recently agreed to implement a set of "fair principles" that includes the right to "opt-out" of a reprice by closing your account and paying off the debt under the existing terms of the agreement. I've used inverted commas here because its not entirely clear what these terms actually mean. From what I understand, the industry was pushed into coming up with these voluntary "principles" at the end of last year by Mandelson's department - BERR. None of this is backed by any new legislation.

Its all a bit vague and hasn't been widely publicised - here's what I managed to find:
Guardian Story
BERR Press Release

Bloody hell mate, you are a wealth of knowledge..... impressive :beer: