Rate Jacking Sucesses/failures

zhatorna65

craigb1976 wrote: »

Does anyone have any recent precedent where MBNA has agreed to reduce rates

I wouldn't hold your breath... a quick scan of this thread suggests not.

Plus they're owned by Bank of America. Try googling them... hardly known for their ethical stance.

BBunter

Card :Virgin (MBNA)
Was : 16.9%
Jacked to : 26.9%
Result : Excellent - Rate kept at 16.9%

Very quick phone call (0800 783 1116) telling them I was unhappy.

Told me a letter was sent giving me the option to opt out (did not get this letter as I would have jumped on it).

Gave me the option again to opt out...said the old rate would be kept but when the balance was paid off they would automatically close the account.

She also implied that when the balance was almost paid off I could call and revert back to the standard rate and keep the account open.

Audio68

First MBNA and today Santander putting it up to 29%. closed them both to opt out. Silly thing is, I have mortgage and current acc with Santander but they can't arrange a loan to pay off cc balance as the two are seperate in their eyes. Catch 22?
Simon

JohnMay

Hi New to the site but used the advice to get a rate reduction on my Capital one card. Again very similar story with many I was rate jacked and didn't know. I managed to get a reduction from 23.98% to 18.5% however they refused to reduce further to the 13.1% I orignally signed for. I have written and asked for an explaination and rational for the rate rise based on their precevied risk of me. I was told that their policy was confidential and this would not be disclosed. On speaking to consumer advice there was pretty nothing they could other than advise me to write to them, which I already did before speaking to them. I also contacted the Capital One customer service, where I was told that the unforseen circumtances in the rate rise bit of credit card agreements are where they borrow money from other banks and their rate rises. I don't know if that is correct, however my conversations with the finacial ombudsman didn't give me much hope. They did however state that if the OFT received large complaints they would investigate! So if anyone is taking a class action or is looking to organise one where can I join? I am currently supporting a complaint through the Ombudsman and have a further 3 and bit weeks for Capital One to resolve before they step in. If anyone has any advice it would be gratefully appreciated.... At present the system is stacked to keep us in debt (if I say Criminally) inorder to keep an income for them. I agree on paying what I owe but incresing the interest so that you cant pay quickly and end up pay alot more! I will be writing to my MP in a few weeks, however if any change is going to made a class action is needed!

carrikp

I had a letter this morning from Marks and Spencer who have said they are raising the interest rate on my card from 18.9% to 20.9% from the beginning of October. I have the option of keeping the old rate and destroying the card. I was gutted as I'd just been working out how to pay off my £2K balance ASAP.

I have never missed a payment, never exceeded my credit limit, have only ever withdrawn one small cash advance and have always paid more than the minimum amount - sometimes considerably more.

This is going to make it more difficult for me to clear my balance so I feel Marks and Spencer are acting very irresponsibly.

However I am not sure that there is anything I can do about it - I don't have a lot of financial 'clout' in the big bad world.

LinziJ_2

I have been Rate jacked by Virgin card which is actually an mbna owned company.

I originally had a years 0% balance transfer rate. I didn't manage to pay this off in that time and had split from my long term partner and was lumbered with the debt (it was in my name only, how trusting of me!).

Virgin credit sent me through a notice of interest rate increase but I didn't realise that I could do anything about it so just filed the paper work. Then about 6 months later I recieved another letter increasing the amount again and I looked twice because I thought it was a bit odd.

It stated on the letter that I could close the account and keep my current rate. I contacted virgin who agreed that I could keep paying at my current rate until the balance was reduced to zero. It was a very quick 5 minute phone call.

littledisey

I have an Egg card, for 3 years now. Started life as a 0% BT card. Paid that off, then used it again over the years. Limit is £13K. APR was 16.9%. Last March I was notified they were increasing the rate to 21.9% - as this was the only card I had at the time with any credit left open, husband not working, only me working I took the hit and didn't take the option to freeze and suspend the card.

Couple of months ago the husband got a small inheritance of £15K which we used to clear some chunks of the various cards, including all but £1800 on the Egg card.

Start of August they sent me an email saying I had my Anniversary offer of 0% for 5 months. I called them and said thats all well and good but what is the point of me transferring money onto the Egg card for 0% for 5 months when at the end of that it will go up to 21.9%. The card I would transfer from has a 18.9% rate so no point. I asked if they could reduce my rate as my circs and credit rating has changed. Told No ! they only review customers accounts once a year and my next review was March.

Fine - just left it.

2 weeks ago I get an email saying that I have been selected for an extended 0% so any BTs will be 0% till end of March 2011. Big wow ! still no good if the rate is 21.9% at the end of that. Did nothing. The last Monday they email me again to say they have reviewed my account and are pleased to say they are reducing my rate to 19.9% !

OK so its not back to 16.9% but hey, still an improvement and goes to show that if you do make the calls it clearly does make them look at you again - why else would I suddenly get a longer 0% offer and rate reduction a month after I tell them I would happily transfer £10K onto their card if it was at a better final rate !

I had a ratejack from 13.9% to 24% about 18 months ago with Virgin Amex and just opted out. I now view that £10K as a personal loan - albeit at a high interest rate !

LD

StefanPaetow

I've never really responded on here much, but the horror experiences I've had with Egg and MBNA since the credit crunch began pretty much mirror what's already been said on here...

MBNA always kept me on a reasonable interest rate (16.9% or thereabouts), Egg a few percentage points lower. However, MBNA quickly upped their interest rates to 18.9%, then 21.9% and 24.9% and finally 33.9%. I objected and demanded that my account be closed. They responded by saying that the latter interest rate was now applicable (after my current deal ended), and that nothing, not even closing the account, would change it. I resorted to Zopa for a loan to give MBNA the middle finger, and it was the best decision I've made. I was very pleased to rub their faces in it when the balance was zeroed with a few weeks to go on my 0% interest deal, and told them that I would do my utmost to ensure that no-one I know would ever take up credit cards managed by them.

Egg upped my interest rate to 18.9%, but considering that the outstanding was not much, I sucked it up and paid it off after telling them that they'd lost a loyal customer in me, and that I would never be back. And I won't be.

Yes, the age of cheap money may be over, but those who allow you to weather the storm are usually the ones who didn't give you the best deal to begin with (read the big highstreet banks).

Sadly, LTSB has decided to up my rate by 3 or so percent on the card I've had with them since 2004, and it now breaches the 20% limit. I shall have to tell them that I'd like to close the card... even though it's come in so incredibly handy in the last few years.

Oh well.

atsoc15

Card :Egg MONEY
Was : 7.9%
Jacked to : 12.9%
Result : Excellent - Rate kept at 7.9% AND £100 goodwill gesture

firstly i just stopped this increase for the principal as i pay off in full every month. Simply asked for a full explanation as to why I was getting a rate increase and advised that I would only accept an explanation that is specifically relating to me.

They couldn't provide it. So took it to the ombudsman who ruled in my favour and recommended egg give me £100 compensation.

ManxAvenger

HSBC - has gone from 0% through 7.9%, 23.9%, 26.9%

Ongoing atm.

7.9% offered in Dec '09, as I was unhappy with the new rate change, card cut up. Pay back £200 pm balance £2,100

Have since, without my knowledge or my being informed, raised rate to 26.9% as, apparently, 'I am a risk'! and the economic climate :question:

Have appointment today and will keep posting 'til resolved.

13/9 - 17.30 Branch very helpful and have passed on my complaint to their card services department through their own channels.