Help please - interest higher than minimum payments

alwayspuzzled

Hi, does anyone have any advise please.

I have an MBNA card which has only been used for balance transfers. The introductory rate ran out and then they sent a letter putting the rate up to over 30%. I owe over 11,000 and I pay by DD and have just realized that the minimum payment doesn't cover the interest being charged. Is this legal. Obviously I'm going to have to make some manual payments as well but I'm wondering where I stand with this, as to if I can get the interest rates back down to a more manageble level.

Unfortunately i'm now in a position I can't get anymore credit so balance transfers aren't an option.

mufc689908

Not the most ideal scenario but MBNA jacked up my APR to nearly 34% and I refused to pay. They wouldnt negotiate lowering the apr, as a result after months of going back and forward they wrote off nearly 8K of a 10k balance to get me off their books.

I know my credit rating is now sh*t but i refuse to bend over and take from any lender who decides they are going to send my apr through the roof when it suits them.

CannyJock

alwayspuzzled wrote: »

Is this legal.

Yes - APR is variable. When the rate is being increased, you've a right to remain on the "old" rate if they close the account to prevent you using the card again.

Sounds like this is your best bet.

YorkshireBoy

alwayspuzzled wrote: »

...they sent a letter putting the rate up to over 30%.

Didn't the letter also give you the option to 'opt-out' of the increase, stop using the card, and stay on the original rate, ie 15.9% APR or whatever?

It should have clearly stated this; MBNA have been doing this since January 2009. Did you read it fully?

alwayspuzzled

I think there was an opt out but it was months ago so I presume long expired. I've been in a black place and have only just pulled my head out of the sand. Don't want to kill my credit rating, in fact I'm trying to improve it as my only way out is to remortgage or sell up and get a new mortgage on a new house. Have worked really hard on my house and have good equity, but equity doesn't help with cc and loan repayments.

Is it worth contacting MBNA to see if I could still go back to the old rate or am I far too late.

mufc689908

alwayspuzzled wrote: »

I think there was an opt out but it was months ago so I presume long expired. I've been in a black place and have only just pulled my head out of the sand. Don't want to kill my credit rating, in fact I'm trying to improve it as my only way out is to remortgage or sell up and get a new mortgage on a new house. Have worked really hard on my house and have good equity, but equity doesn't help with cc and loan repayments.

Is it worth contacting MBNA to see if I could still go back to the old rate or am I far too late.

Good luck they dont give a sh*t.

CannyJock

alwayspuzzled wrote: »

I think there was an opt out but it was months ago so I presume long expired. I've been in a black place and have only just pulled my head out of the sand. Don't want to kill my credit rating, in fact I'm trying to improve it as my only way out is to remortgage or sell up and get a new mortgage on a new house. Have worked really hard on my house and have good equity, but equity doesn't help with cc and loan repayments.

Is it worth contacting MBNA to see if I could still go back to the old rate or am I far too late.

You're too late, but you might as well make a phone call and ask them the question.