MBNA Minimum Payment and Interest Changes - Help

Clive_India

@izools: I would do that but I don't want to harm my credit history for 6 years, with what could potentially be a very temporary problem of a matter of months, because if I get a job then in a few months I could move out and for that I'd need a good credit history.

@Little bit Dizzy: Thank you for that link there is the option of asking them to freeze the account and effectivly close it and it won't effect my credit score, which is a bonus and means I don't have to deal with MBNA any more after I've cleared it... double bonus. And thanks for wishes on my job searching :^:

chattychappy

Unfortunately whilst you can exercise your right to reject the interest rate rise on the basis the account is "closed" and you don't put new transactions through, there is no explicit right to do the same over the minimum payment change.

In fact, if you do exercise your right in respect of rejecting the interest rate hike, the obligation is to pay down the balance in a "reasonable time". Usually CC companies let you carry on paying as normal - but co-op have interpreted this as 6 months. I am sure that MBNA could insist if they wanted to that you pay at least 1% a month if rejecting the hike. Assuming you pay 1% of the original balance and there was no interest, that's still over 8 years!

It's interesting - if someone could successfully challenge the minimum repayment increase then MBNA could get around it by hiking interest hoping that people opt out (unless they are on a LOB deal). Then they could go for the "reasonable period" thing to get higher repayments.

Calmerwater

@CLive India,
I had the same letter this month and am on the boards looking to see if there's a way I can say "no thanks, I'll keep paying what I am but close the card", but having read about a bit I'm thinking well actually this will force me to pay off the card (£6750, 34.9% APR which it's been on for over 2 years). I will call MBNA and ask them if they will lower the interest rate (again), but I doubt they will - I seem to remember last time I asked they said it didn't fit with their business model to do that! Bless 'em. So I'll be finding an extra £67 a month to start paying off the actual debt, and to be fair, thankfully I've got a loan that finishes in April, so will just pay that amount onto the card and instead of being able to afford to go on holiday this year, I'll hopefully get rid of my largest and most expensive debt - which is a reward in itself.

Re: your situation - call them up and explain your circumstances and see what they suggest. When they hiked my rate (over 2 years ago) to 34.9%, I said I'd have difficulty paying it, so they put me through to their "you're poor and you know you are" team, who were happy to look at a scheduled payment plan, but as we went through my SOA they said I could afford to pay under the terms they'd set and therefore didn't qualify. They were right, to be honest, at that time I had a good salary and living expenses were low, 2 years on with a partner out of work and increasing fuel and food prices, not to mention car insurance and electric, it's much harder. But worth calling them to see anyway.

And ignore the idiots on here who are patronising/unhelpful etc etc - obviously they are so sad and insecure they need to be mean to others to make themselves feel good - Bless 'em - we ought to feel sorry for them really!! These Boards used to be really friendly, but some people make it an unpleasant experience for everyone!

Good luck!

Esoog

As far as I'm aware you can't reject it because there's no interest rate rise; just the way they work it out?

I've already rejected a hike a while ago and my account is "suspended" but I too am subject to the new rules/rates

dazla

kev.s wrote: »

if you can't afford to pay your balance off in full every month, then you're clearly living outwith your means, even prior to jobloss.
it's the same old post time and time again... "i've spent to much, can't afford it" etc etc, when will people learn?

You really are smug, you know nothing about this persons situation !

opinions4u

dazla wrote: »

You really are smug, you know nothing about this persons situation !

I'm not sure why you'd drag up a thread that's been dead for 8 weeks, but anyway ...

Maybe there is a leap of faith to say that somebody is living beyond their means based on the information posted.

But at some point in time it's likely that the OP had no debt. Then they got a job. Then they spent more than they earned for a period of time. The debt hit £1,000; £2,000; £3,000 ... £9,000.

Then the job's gone and it really hits the fan.

I think it's fair to point out to anybody in work that has a credit card debt or overdraft that simply increases month by month is leaving themselves open to potential problems in the future.

I'll be smug now. In over 20 years I've never paid a penny in interest on a credit card. Borrowing on a credit card is a choice. Clearing it full before interest is charged is a choice. Allowing the debt to build up over time (months or years) is a choice that inevitably will catch up with you sooner or later unless your income increases or your spending slows. Especially for those who have little to show for it.

dazla

opinions4u wrote: »

I'm not sure why you'd drag up a thread that's been dead for 8 weeks, but anyway ...

Maybe there is a leap of faith to say that somebody is living beyond their means based on the information posted.

But at some point in time it's likely that the OP had no debt. Then they got a job. Then they spent more than they earned for a period of time. The debt hit £1,000; £2,000; £3,000 ... £9,000.

Then the job's gone and it really hits the fan.

I think it's fair to point out to anybody in work that has a credit card debt or overdraft that simply increases month by month is leaving themselves open to potential problems in the future.

I'll be smug now. In over 20 years I've never paid a penny in interest on a credit card. Borrowing on a credit card is a choice. Clearing it full before interest is charged is a choice. Allowing the debt to build up over time (months or years) is a choice that inevitably will catch up with you sooner or later unless your income increases or your spending slows. Especially for those who have little to show for it.

Well good for you! As I said previously sometimes people have no choice, as life sometimes deals them a bad hand, as it did to me, belive me i did not rack up debts due to living beyond my means. This board is not a place to patronise people

chattychappy

dazla wrote: »

This board is not a place to patronise people

opinions4u has been around here 5 years so I think s/he knows that. I didn't think the post was patronising albeit self-styled as "smug". (Which means he's off the hook!)