MBNA increase my interest rate to 29.9% !!

richard-

I have just been off the phone after asking them why a purchase of £3 was declined a they said it is the merchant anyway the lady asked if I have received my letter from them informing me of an interest rate increasing to 29.9%. I asked her a number of times and she said 29.9%..

Can they do this that's a whopping £200 a month interest on my account of £655?

danuk

Yes they can increase it when they like but you can opt out of the increase within a certain time frame however its NOT 29.9% a month that the annual rate so its not £200 interest a month mate.....

YorkshireBoy

29.9% is an APR, with the 'A' standing for annual, so it'll be around £200 per year...not per month.

The answer is simple...when the letter arrives it'll give you the option to 'opt out' of the increase, freeze your account (ie no further spending), and remain on the old rate until the account is settled.

And yes, they can do it. Your interest rate is 'variable'.

bengal-stripe

It is 29.9% per annum. Which means on your £ 655 debt, it will be about £ 16.40 per month in interest. It’s still not cheap, but better than 200 quid.

You can always opt out and continue with the previous rate of interest; which means no more purchases on the card until the balance is paid off.
　

Typhoon2000

Yes they can, one of mine is on 34.9% no balance £15000 credit limit and current 0% till Sep2011 offer. Clearly nothing to do withrisk profile, must have picked me out at random... It will be closer to £14 a month interest.

richard-

what a relief!.. but i've yet to receive this letter - she said it was sent on the 20th sept.

YorkshireBoy

richard- wrote: »

what a relief!.. but i've yet to receive this letter - she said it was sent on the 20th sept.

Chase 'em, because you'll only have 30 days to opt out...and I'm not sure when the clock starts ticking!