Underhand Tactics from MBNA?

The_Sultan_of_Bling

How can MBNA justify raising their monthly interest rate on my Platinum Visa account from 1.2408% to 1.8735% - a rise of over 50%? I admit that I received a letter in January informing me of the increase but, because it merely stated the new rate as 1.8735%, I didn't realise the implications. Whilst it is true that I am fully responsible for not checking and acting upon any letter received, if MBNA had stated "the APR on your account will increase from 15.9% to 24.9% in March", I am sure I would have acted sooner to complain. When I did complain today, I was told " we are acting within the law, and you should have known the potential difference in the rates"! They offered to return the rate to 15.9% from next month, but only offered to refund half of the additional interest due on this month's statement.

YorkshireBoy

The_Sultan_of_Bling wrote:

How can MBNA justify raising their monthly interest rate on my Platinum Visa account from 1.2408% to 1.8735% - a rise of over 50%?

1. Fundamentally, because they say they can - see your T&C's.

2. They are about to lose a significant source of revenue (from the 'illegal' charges they make when people pay late/exceed their limits etc) and are looking for alternative revenue sources. Annual fees will follow I'm sure, so £15/annum and 24.9% APR will go some way to restoring their profits.

The_Boss

YorkshireBoy wrote:

1. Fundamentally, because they say they can - see your T&C's.

2. They are about to lose a significant source of revenue (from the 'illegal' charges they make when people pay late/exceed their limits etc) and are looking for alternative revenue sources. Annual fees will follow I'm sure, so £15/annum and 24.9% APR will go some way to restoring their profits.

That should only apply to the late payers. Thanks for ruining it for all of us guys.