Is MBNA allowed to do this?

retiredandfabulous

I am new to this forum, but I thought I would write to see if anyone else has experienced this issue. I have three credit cards all of which are MBNA, although to start off with they belonged to various banks and MBNA seem to have taken over them all. I have always made the monthly payment and have never had any problems. However since I have retired I obviously dont have a massive income, and I noticed that on one particular card the minimum payment was just about covering the interest and the balance just wasnt going down. When I called, I found out that since taking out the card they had increased the interest rate to 34.9%, and had not informed me. So i wrote to MBNA and enquired as to whether they could perhaps lower the interest rate or even freeze it so I could at least make some kind of dent in the balance. Their answer to this was a payment plan and they looked at my income and outgoings and decide that I couldnt afford even that. (Even though I had kept all my payments up to date). They then decreased all my credit limits, without discussing it with me first. So, since then I have still kept up to date with payments. However, I went to use one of the cards the other day to find out they had stopped it, as well as the other two. When I called up to find out why, they said I could not afford to make the payments so have suspended all my accounts, again not bothering to tell me. Is it right that I have been penalised because Im retired, even though I am paying all my debts to them and their unfair interest rates? Do you think its worth writing to the Ombudsman? Would I have a fair case? Any help would be greatly appreciated.

corbyboy

Do they specifically say they have not given you any notice? Or do they claim it was lost in the post?

They are entitled to reduce your credit limit whenever they want, but they should at least write to you first to give you some notice. Have you checked whether they have your correct address?

If you are struggling to make large enough payments they are probably doing you a favour by closing the accounts.

BLT_2

corbyboy wrote: »

Do they specifically say they have not given you any notice? Or do they claim it was lost in the post?

They are entitled to reduce your credit limit whenever they want, but they should at least write to you first to give you some notice. Have you checked whether they have your correct address?

If you are struggling to make large enough payments they are probably doing you a favour by closing the accounts.

Whilst I agree with the spirit of the last paragraph I confess to certain reservations regarding the method which these companies use.

In essence they offer you money on the never never, they then increase your credit limits over time as you approach your ceiling, subsequently increase your interest rate if they suspect you have difficulties, and then in one foul swoop pull the rug out from under your feet.

A more moral approach would be a gradual reduction of an individuals credit limit giving him time to come to terms with the situation, however MNBA are not noted for their compassionate approach to banking and sadly issue credit cards to all and sundry under various pseudonyms (Virgin, Bank of America etc etc).

Rather late advice for the OP however given the choice between swimming in hungry shark infested waters and dealing with MNBA a natty set of speedos would be your best option :rotfl:

oldagetraveller

You would be better writing correct English if you wish to spam! Post number 4 reported.

CLAPTON

You are clearly in financial difficulty so its reasonable that the cards are blocked.

Usually the interest rates show on the monthly statement so you can check them at any time.

You don't say what sort of 'payment plan ' you have but usually a payment plan is basically defaulting on the account.

It does seem poor they haven't told you a little more but are you sure you read all their communications?