Is this right what MBNA are doing?

YorkshireBoy

vbrindle wrote: »

Nothing other than the shoddy 34.9% interest

Then you need to post up the basic (personal details removed) statement information, ie...

opening balance
interest (is there cash interest as well?) added
payment received
etc

...so that we can try and identify the reason(s) for the balance increasing each month.

Can you post up 2 or 3 months worth of (basic) statement data?

vbrindle

Will see if I can get his recent statements off him and let you know.

speedbird1973

If the min payment is £5 + interest, then the balance is going down a fiver a month - unless he's using the card. The APR could be 10000000000000000000000000000%, his payment would be quite high, but the balance would go down by a fiver each month!

vbrindle

This is what I've found out

September Statement:
Opening Balance: 4,906.08
Payment: 223.08 CR (£100 extra on top of minimum payment)
Interest: 101.60
Closing Balance: 4,784.60
Minimum Payment: 106.60

October Statement:
Openening Balance: 4,784.60
Payment: 106.60
Interest: 103.31
Closing Balance: 4,781.31
Minimum Payment: 108.31

Estimated interest next month: £110

Can you see where I'm coming from now?

ILW

Only making minimum payment is voluntary, would your friend prefer if the minimum was increased to say 10% of the outsanding balance. I cannot see what the issue is.

petera74

MBNA (VIRGIN) RATE JACKER EXPERTS!

The problem the average consumer for credit cards is having is simple!
The minimum payment mainly is made up of interest due to the Credit card.So no debt on the card ever gets paid!
For me. I have 3500 pounds of debt on a Virgin MBNA card. In Jan 2008 they changed my interest rate from 15.9% to 29.9%.
So I work out I can only pay about 100 pounds each month. Of which at 29.9% APR. 86 pounds is interest and 14 pounds is off the debt. So in a year of paying 100 a month, 1200 for the year. 1032 pounds is interest and 168 pounds is off the debt.
So in a year at 29.9% APR I would get the debt down to 3332 pounds.
If they left me at 15.9% which I signed up for and spent at that rate.
At paying 100 pounds a month for a year 1200 for the year. I would have paid 528 pounds in interest and 672 pounds of the debt.
So in a year I would at 15.9% APR I would get the debt down to 2828 pounds.
To me at a rate of 15.9% APR I have a chance at clearing the debt.
At 29.9% it is a lot harder to do.
This is were the credit card companys are clever, they know that if they leave the rate at 15.9% then the debt will be cleared at some point. At 29.9% they know that an average consumer will not be able to keep up at 29.9%. Therefore they are keeping money flowing in.
They need to be stopped ASAP with interest rate hikes.
If you go to MBNA credit cards and request all consumers with a debt higher that 3000 pounds, ask them what rate the consumers are on. You will be surpised at how many people are at 20% and over!
I would say 95% of consumers are in the same boat as me.

This is my story!

Ask The credit card companys what fixed rate cards they have?
Answer – None!
We all know why! So they can exploit the term Variable.

ILW

I would suggest that 95% of consumers did not NEED to get themselves into that position. They could have saved to buy the stuff.

petera74

Yes we all can spend over and above. I take full responsibility for my actions, but I did not sign up for 29.9% neither did I spend at that amount. I would never spend at 29.9%APR!

ILW not everyone has the ability to have savings. You work for MBNA surely!

vbrindle

ILW wrote: »

I would suggest that 95% of consumers did not NEED to get themselves into that position. They could have saved to buy the stuff.

What is the point saying this to people who already have a balance on a credit card? I'm sure millions in this position would be wishing they saved up, but the fact is they haven't and it's too late now.

These crooks tempt you to get the card with a good rate then they increase the rate so you can't pay back.

vet8

Barclaycard have changed their minimum payments to a ludicrously low level.

My card has transactions this month of £98, of which about £74 is interest and yet the minimum payment they require is only £92. People who pay off that little are going to be in deep doo doo.