Credit cards finally outed - huge APR's!!

bertman

Just seen a report on GMTV, they are reporting that credit card interest rates are at an all time high when the bank rates are at an all time low.

On the same report it stated that Barclays had had bumper profits - funny how both things are linked.....:rotfl:

I tried to get the interest rate on my own MBNA card reduced yesterday from 34.9%, the robot on the line said he couldn't reduce them. I said they are higher than a loan shark and I guess Richard Branson has to get his money some way but I guess the answer to that wasn't on his little crib sheet....:D

Surely there should be a cap on the amount of interest that can be charged? It is our money that baled them out last year.

Butti

Bertman

Have they increased your APR since January 2009? This was when they made a commitment to help borrowers by offering the option of freezing your APR. You have to stop spending and just pay the card off.
I've recently done a post on it if you have a look at my posts.

B

DGJsaver

What i like is the comment on BBC news this mornign , something along the lines of the banking association darent lower them as they are worried about lending to bad payers.........which is funny because isnt it the people they already have by the balls that they are screwing ?

bertman

Butti wrote: »

Bertman

Have they increased your APR since January 2009? This was when they made a commitment to help borrowers by offering the option of freezing your APR. You have to stop spending and just pay the card off.
I've recently done a post on it if you have a look at my posts.

B

Hi Butti,

I haven't spent on this card for over a year now so I guess they think "lets make as much money as possible" .

The trouble is though that APR rates are probably set by computer based on certain restrictions, as I haven't much of a credit rating at the moment I am really caught with this one....

LeeSouthEast

Depends on the person I suppose. My Egg card during the 'height' of credit availability was 16.9%. I've now got a Barclaycard at 12.9%. That said though, APR is now irrelevant as I don't revolve a balance. LBM's are fabulous things

debtdesperado

I think Virgin AKA MBNA do this to everyone... alongside the highest interest charges, they also give you the biggest credit limits = complete crooks.

By the time you are up to your limit (because they don't tell you, knowing that most people with a permanent balance on their cards are probably quite disorganised and won't notice) the amount outstanding is so high that there is no way you can do the zero APR shuffle recommended on here.

I had to get a consolidation loan to clear my circa £12k balance (APR 7.2%), as the debt snowball was showing that it would take me about 20 years to clear it...

Dreadful - I would never deal with them again.

Butti

debtdesperado wrote: »

I think Virgin AKA MBNA do this to everyone... alongside the highest interest charges, they also give you the biggest credit limits = complete crooks.

Dreadful - I would never deal with them again.

You're right desperado. They like to increase your limit, throw credit card cheques at you and then at the end of the 0% period knock it up to 25% APR. I think calling them crooks is polite. They are definately NOT responsible lenders and I would dispute their parentage.

They seemed to have trouble understanding our last conversation when I lowered my credit limit!

B

BeautyandtheBeast_3

isnt there a loophole that the cant increase it and if they do then you contact then tell them you arent accepting it as there is no new debt on there? My virgin card ends 13/03/10 - havent spent anything on it just balance transfer! i hope they dont try it with me. xx

Poosmate

Yep! I got a letter yesterday from MBNA saying my interest rate is going up by 0.2% - unless of course I inform them to freeze it, which I will do!

The last time they put my rate up (late 2008) it was by a massive 7%!!! Obviously I called to complain but was told it was put up "because you can afford it". Muppets! Since then, I have reduced the balance by about £1800, unfortunately I haven't been able to pay it all off but that is my target debt so hopefully it will be gone by the end of the year (or sooner if poss).

I'd rather pay interest on my remainder debt with someone else that MBNA or any other CC's connected to them. Well let's face it, most other decent (oh the irony) credit cards are cheaper anyway! lol

I wish we could all boycott MBNA.

Poo

Butti

BeautyandtheBeast wrote: »

isnt there a loophole that the cant increase it and if they do then you contact then tell them you arent accepting it as there is no new debt on there? My virgin card ends 13/03/10 - havent spent anything on it just balance transfer! i hope they dont try it with me. xx

You can normally tell them they have to offer you the option of freezing the rate at its existing level and that you would take that option......BUT.....that probably doesn't apply when they have had a 0% period which they told you at the beginning how long it was going to go on for. So Virgin tell you they are offering 0% for 16 months, you accept that offer, they have not told you what will happen after the 16 months. I would bet the rate will be going up to about 25% at the end of the 16 months. You need to be moving the existing debt to other cards and then throwing money at the Virgin card. I am going to have a go this month at increasing the limit on my Halifax and then moving money. You will see from my signature that I am throwing everything at my Virgin card first.

B

BeautyandtheBeast_3

ok well i have got an email from virgin to say that it will be 18.9%apr after the 0% period is up xxx