I really hate MBNA!!!!

Toomuchdebt

But if they refused the DMP what right do they have to block the card?For all they know I could have now be getting money from my bf (not yet but hopefully next month) which would pay it off quite nicely.I just object to the heavy handedness of it and the fact that because it's blocked they can't reduce the interest rate but they can happily raise it by 10%

Toomuchdebt

Mike_St_Helens wrote:

They would Block the acc simply because of a DMP.

If you tell them you are out of work, also of course they will block the acc.... sorry .

In that case they should have blocked it 2 years ago when I moved out and went on benefits-instead they raised my limit from £4000 to £8300.Doesn't make sense.

mountainofdebt

There was / is another posting on the credit card board about increases in interest rates from egg and the 'risk factor' was also mentioned there.

As I posted on that particular thread, it makes no sense to me at all to do this to people who are just about managing to meet their monthly repayments. To be honest I think increases in interest rates would just tip some people over the edge from wanting to pay their debts to thinking sod it I'll go bankrupt.

It would make far more sense for the credit companies to keep the interest rates as they are and reduce the credit limits for these high risk individuals - at least then they have a stronger chance of getting their money back. I can only assume that these credit card companies are run by people who can't think outside the box for innovative ways of reducing the risk of bad debts. This is obvious as the shock I hear in the call centre staff's voice when I call up to reduce my limits is unbelieveable.

It would be interesting if Martin gave his views on this

Toomuchdebt

To be perfectly honest I am once more considering bankruptcy as I really can't see how I can keep up with minimums when the interest rate goes up in October

david_hellier

NB from 14% to 24% is a 75% rise in their margin. Obscene and cruel.

david_hellier

Correction; 2.0084% per month is 26.9% APR. Even worse!

Mike_St_Helens

Toomuchdebt wrote:

In that case they should have blocked it 2 years ago when I moved out and went on benefits-instead they raised my limit from £4000 to £8300.Doesn't make sense.

I know its feable, but it depends st if you told them and second if you din, the operator passed the info on...

Mike_St_Helens

Toomuchdebt wrote:

But if they refused the DMP what right do they have to block the card?For all they know I could have now be getting money from my bf (not yet but hopefully next month) which would pay it off quite nicely.I just object to the heavy handedness of it and the fact that because it's blocked they can't reduce the interest rate but they can happily raise it by 10%

They have the right, simply because you quote DMP... they brick it and think of financial difficulties. At the end of the day as a responsible lender, they can not be seen to give anyone more credit when they have indicated there are fiinancial issues...

Mike_St_Helens

mountainofdebt wrote:

There was / is another posting on the credit card board about increases in interest rates from egg and the 'risk factor' was also mentioned there.

As I posted on that particular thread, it makes no sense to me at all to do this to people who are just about managing to meet their monthly repayments. To be honest I think increases in interest rates would just tip some people over the edge from wanting to pay their debts to thinking sod it I'll go bankrupt.

It would make far more sense for the credit companies to keep the interest rates as they are and reduce the credit limits for these high risk individuals - at least then they have a stronger chance of getting their money back. I can only assume that these credit card companies are run by people who can't think outside the box for innovative ways of reducing the risk of bad debts. This is obvious as the shock I hear in the call centre staff's voice when I call up to reduce my limits is unbelieveable.

It would be interesting if Martin gave his views on this

Like I stated earlier... this is the reason as a business... they do it, it may be not moral and the right thing to do but...

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...

Gemmzie

Isn't the reason partly due to the number of people stoozing? The companies have gotta make their profits somewhere, and with so many 0%-ers, they exploit the people who are paying well because they are paying interest.