I really hate MBNA!!!!

Toomuchdebt

Not only have they been the only ones to refuse to work with me and reduce payments/freeze interest I have just had a letter that my interest rate is going UP from October to 2.0084% a month!!!!!!!! how do they justify that???That's 24.1% I'm never going to manage to pay all this off am I?

Mike_St_Helens

Are you up to date with them, or in a DMP at all ?

Toomuchdebt

I'm up to date with them as they refused to enter a DMP.

Edited to add the interest rate before was 14%

Mike_St_Helens

Ok, I know a fair bit about them. Im certainly not sticking up for them but ;

If you are up to date, why should they stop interest etc etc simply so you can reduce your debt. If you are with a free DMP co such as CCCs or Payplan, they will deal with them and accept proposals, simply because they all would agree someone was in financial difficulty.

They are not too keen on self DMP's as there is no 'regulation' the charity ones have strict I&E's etc etc whereas a self DMP is soley on what the debtor wants.

Again,. certainly not sticking up for them, but thats their reasoning beghind it.

Mike

Toomuchdebt

Fair enough but why raise my interest from 14% to 24%??? That's a bit extreme!

And incidentally the DMP was drafted by a local Community Support office(Like the CAB but local) and they refused that.I didn't do it myself-they sent off a budget showing income and outgoings etc and pro rata payments for everyone.MBNA are the only ones to refuse either reduced payments or lowering/freezing interest rate.

Broken_hearted

Hugs the interest rates are going up on a lot of cards at the moment. I know it doesn't help but as soon as you have paid them off walk away.

Toomuchdebt

Trouble is BH that if the rates go up like that I won't be able to afford even the minimum payments

Mike_St_Helens

Toomuchdebt wrote:

Fair enough but why raise my interest from 14% to 24%??? That's a bit extreme!

And incidentally the DMP was drafted by a local Community Support office(Like the CAB but local) and they refused that.I didn't do it myself-they sent off a budget showing income and outgoings etc and pro rata payments for everyone.MBNA are the only ones to refuse either reduced payments or lowering/freezing interest rate.

Please dont get me wrong, Im not getting at you.. Im in a much dire situation...

The rates im afraid is a nasty one, I worked in a dept that dealt with them 'risk based pricing' its called... not nice. They say its a fair price for the product... but, thats their view. A lot of people think that that reason the rates are increasing is simply because they have chopped the late fees in half, a lot of profit for them really I guess... The real reason for the increase is as they say down to isk, they may be getting nervy to suggest that you may default (not saying you are), they increase the rate and get more money from you, thus if the account does go bump, they havent lost as much money on your account... but if it doesnt go bump.. they gain im afraid...

Have you ever tried CCCs or Payplan, did you know MBNA make a very large donation to those 2 charities, so can be more inclined to accept payments from them.

all_hours

That's an outrageous increase!!

Most cards are increasing by 2 or 3% - surely 10% is against some law or other.

Mike_St_Helens

all_hours wrote:

That's an outrageous increase!!

Most cards are increasing by 2 or 3% - surely 10% is against some law or other.

Ive seen em increase from 5.9% to 29.9% in a single pap !

Toomuchdebt

I will look into CCCS but I would rather do it myself if only for the simple reason that I get benefits paid weekly so it would be quite difficult for me to send a monthly payment to CCCS.I'm on the phone with MBNA now to see what they say.