APR hikes

albeblue

I received a letter from my credit card company a couple of months ago to tell me that they were increasing my APR rate from 9.95% to a stonking 24.9%, yesterday I got a further letter to say they were increasing the rate again to 34.9%. Can they do this????

Like others I pay off the balances and didn't actually owe anything on the card when they increased it to 24.9% but like a fool they offered me a rate of 0.9% for a cash advance until January which I accepted (+4% transfer fee). I have borrowed £1,000 to pay off other higher interest rates. No sooner had it hit my account then I got the next letter regarding a rate increase to 34.9%.

I thought that they couldn't increase your APR by more than 7% at a time and that they can only do this 2x a year is this correct?

Also if I cancel the card will the APR freeze at 34.9%? or 24.9% or 0.9%???? I'm guessing 24.9%.

Any advice would be gratefully received.
Thanks

_Andy_

Hi

If you do a search of the CC forum there are plenty of threads about this.

MBNA by any chance?

albeblue

Yup MBNA, sorry haven't used this site to post before and don't know my way around.

_Andy_

That's OK - welcome to MSE. Try putting something like 'MBNA increase' in the search box, selecting the Credit card forum.