MBNA Virgin card 15.9% hiked to 24.9%

accountnurse

There are a few threads here regarding this outrageous hike in the interest rate for MBNA's Virgin credit card.
If you got this letter too, please could you post here-
1) Original and new rates
2) When your 0% period expires
3) When new rate applies
4) Reason/excuse they gave you for raising the rate
5) Has any other provider raised your rate like this?

1) 15.9%-24.9%
2) 0% expires 15th June (should have been 15th May-
they made a clerical error!)
3) Following May statement, but only when 0% rate finishes
4) First payment was a bit late (DD mix up) LAST AUGUST!
Was also told the timing of this is 'just a coincidence'
5) No (except by about 1% and not during a 0% period)

I'd be interested (ho ho) to know what they're telling other people. The first person I spoke to said that something had probably just adversely changed on my credit file...(which is nonsense)

grex9101

crikey.... that's some hike!

i feel almost lucky barclaycard put mine up by 1%...

The_Boss

They can put mine up to 50% as far as I'm concerned and it will not affect me

nomoneytoday

I phoned them to complain, and got another 5 months at 0.9% APR

The_Boss

nomoneytoday wrote:

I phoned them to complain, and got another 5 months at 0.9% APR

Other people have been getting 6 months at 0%. Complain harder next time!

accountnurse

The_Boss wrote:

They can put mine up to 50% as far as I'm concerned and it will not affect me

I'm not paying any interest either, but that is hardly the point of my thread. A card provider who starts to hike it's rates like this should be avoided by anyone 'tarting' who thinks they could have difficulty securing another 0% deal, or anyone new to 'tarting' who isn't 100% confident they'll get it right. In an ideal world no one would get caught out at the end of a 0% promotional deal, but it does happen (for all sorts of reasons) and with 24.9% interest it would be a very expensive mistake. Not everyone has a 2nd option available as back up so I think this information is useful.

accountnurse

nomoneytoday wrote:

I phoned them to complain, and got another 5 months at 0.9% APR

Hi,
(If you don't mind answering........if you do, don't worry!)
I was wondering if they gave you a reason for raising your interest and if you asked for the extension or if they offered it.
Thanks

pshuttle

Yep they did the same thing to me a few months back - nearly 25% interest takes the proverbial....

I rang Vigrin money. Asked why they had put the interest rate up when they were still advertising a 15.9% rate on their website. account up and they simply gave me the usual speal about how they had reviewed my account etc..

I was very annoyed and complained. I have since closed me account with them.

Pete

pshuttle

Yep they did the same thing to me a few months back - nearly 25% interest takes the proverbial....

I rang up and ask why they had put my account up and they simply gave me the usual speal about how they had reviewed my account etc..

I was very annoyed and complained. I have since closed my account with them.

Pete

belleooo

Me too. As explained on another thread this as happened to me. My previous rate was 15.9% and came with a 9 month 0% balance transfer offer which regretably I didn't take advantage of as the credit limit was too low to cover my actual cc debt. With hindsight I should have cut the card up but didn't and used it to pay for some urgent house improvements. Last month I received a letter saying that the rate had increased to 24.9%. Was told that the rate was variable and was constantly under review. Was also told that the way you run the account will determine your rate. Out of twelve payments I was late with one payment by one day. This was due to illness. I explained this at the time and they seemed sympathetic and removed the late payment charge. I had otherwise made my payments in good time and always paid a little bit more than what they asked as I want to clear the debt a bit faster. Anyway I had a good old moan to them and got the rate reduced to 18.9%. I put my hands up and deserve no sympathy but I still think I have been treated harshly for one late payment. Pressuming this is the reason for the sudden hike.

accountnurse

Resurrected thread to share this totally unexpected outcome.....
I phoned MBNA today to cancel my Virgin card, my 0% deal expires 16/06/06 and I've already transfered my balance to Capital One.
I was asked to explain why I wanted to cancel-I told her that although I understood MBNA had acted within their terms and conditions, in my opinion the interest rate hike and the reason I was given were shoddy business practice. I said I wouldn't deal with MBNA or Virgin again-regardless of whether their action cost me anything (it didn't). I also told her that the unhelpful 'tough luck' attitude I got when I rang about the letter in the first place left alot to be desired. She told me the new rate of 24.9% hadn't actually been applied to my account (and wasn't going to be?!...), I said I still wanted to cancel......She was very, very apologetic and asked what she could do to keep me as an MBNA customer, I said short of the 0% Capital One gave me until August 2007, nothing.
She suggested I keep my MBNA card as a 'back up' card and offered me 7.9% 'across the board'- balance transfers, purchases, credit card cheques AND cash transfers, no obligation to actually use the card to keep rate-am expecting confirmation by post but may still cancel the card anyway, haven't decided yet.