mbna warning

stonecold316uk21

i have an mbna platinum and not used it for a while as i owe 1300 trying to repay as quick as poss. i contacted them regarding my account and asked them what rate of apr i was on strangely the guy said it had just increased from 13% to 34.9% needless to say not impressed never get statements or letters regarding this change .so im now trying to find out if they can do this change and why have they done this . so much for recession ..

DisgruntledGoat

The APR change will likely be on your statement somewhere, and the small-print will allow them to vary the APR. As to whether or not it's reasonable... not really, but this sort of thing happens a lot

I'd start by calling them again and explaining that you're trying to pay it off and the APR change really doesn't help, I know of a fair few cases where they've dropped it back down again. If not, i'd look to balance transfer it somewhere else asap and close the account

CannyJock

They can and frequently do this. Do a search for "MBNA increased rate" within this board and you'll find hundreds of identical posts.

NickX

When imposing such an increase in APR, MBNA are now obliged to offer you the option to refuse the increase and repay your debt at the existing rate, although the account is closed and no further spending can take place.

I would contact them and request that they honour this option for you. An increase from 13% to 34.9% is not good, and you want to avoid paying such an extortionate increase.

oscar52

NickX wrote: »

When imposing such an increase in APR, MBNA are now obliged to offer you the option to refuse the increase and repay your debt at the existing rate, although the account is closed and no further spending can take place.

I would contact them and request that they honour this option for you. An increase from 13% to 34.9% is not good, and you want to avoid paying such an extortionate increase.

This has to be done within a deadline - and prior to the increased rate going on. If you call them and say "I didnt get the letter" The response will simply be, "we sent it and are not responsible for your postal service - we are unbale to reduce your interest rate as the opt out date has now passed"

How much water it holds is another issue. I dont agree with it (or many other policies) but as an employee, I am forced too.

NickX

oscar52 wrote: »

If you call them and say "I didnt get the letter" The response will simply be, "we sent it and are not responsible for your postal service - we are unbale to reduce your interest rate as the opt out date has now passed"

I understand your point, but they are legally obliged to provide this option, and postal problems cannot be blamed upon either the creditor or the debtor. This would be something of a grey area. Personally I would push them on this to honour this option. The threat of the Financial Ombudsman may twist their arms

oscar52

NickX wrote: »

I understand your point, but they are legally obliged to provide this option, and postal problems cannot be blamed upon either the creditor or the debtor. This would be something of a grey area. Personally I would push them on this to honour this option. The threat of the Financial Ombudsman may twist their arms

I agree and disagree. You are correct, it would be a grey area with regards to the letter. A sort of we sent it - no you didnt cos I didnt receive it scenario. A few have threatened the ombudsman and been told to "go away" by the bank. They haven't and wont change their tune (Trust me, I work there!)

NickX

oscar52 wrote: »

A few have threatened the ombudsman and been told to "go away" by the bank. They haven't and wont change their tune (Trust me, I work there!)

You surprise me because it will cost MBNA if it goes to the ombudsman, and probably significantly more than the extra revenue they will get from the increased rate in the short term.

I would be interested to know the outcome in any cases that have been presented to the ombudsman.

In my opinion, MBNA are running a dangerous (to them) policy here because this legislation was introduced specifically to assist those in financial hardship during the recession and I suspect the courts may take a dim view of such a harsh line should they be legally challenged.