MBNA Minimum Payment Increase

lynxptc

Like many people I've had a letter from MBNA saying that the minimum payment will be increasing.

I just wondered if I have a right to reject the increase as it is a "change to the terms and conditions"?

System

although it will be a pain to pay the extra its in your best interest . this months mbna minimum payment is £107 estimated interest next month is £109 !!! by incresing the payment its making sure at least part of the outstanding debt is paid.
in answer to your question i doubt you have a leg to stand on.

chattychappy

CHRISSYG wrote: »

although it will be a pain to pay the extra its in your best interest

Oh how patronising!

chattychappy

To the OP, if you're keen have a read of these threads, all on the same topic. (I might have missed some!)

In answer your question, there is no established right to reject. I do think there is a "leg to stand on", but nobody has tried a challenge as far as I know.

https://forums.moneysavingexpert.com/discussion/3072002
https://forums.moneysavingexpert.com/discussion/3073642
https://forums.moneysavingexpert.com/discussion/3067956
https://forums.moneysavingexpert.com/discussion/3062638
https://forums.moneysavingexpert.com/discussion/3044966
https://forums.moneysavingexpert.com/discussion/3052700

System

chattychappy wrote: »

Oh how patronising!

it wasnt meant to be ! OH has mbna card and its only this month when ive paid it rather than him that ive realised nothing was comming off the balance , whos interest is that in ? his min payments are going up by £50 ,at least there will start to be a debt reduction after all isnt that why we are all here !!

chattychappy

CHRISSYG wrote: »

it wasnt meant to be ! OH has mbna card and its only this month when ive paid it rather than him that ive realised nothing was comming off the balance , whos interest is that in ?

For someone that doesn't check their statements, then probably you are right.

Otherwise:
1) Under the current regime, if people want to pay more they can (including what the new minimum will be). Under the new regime they will have to pay at least the new higher minimum (or more). So less choice/flexibility.
2) People might have more expensive debt elsewhere - which they are paying down in preference to MBNA. This will force them to pay more off the cheaper debt.
3) People might have "stoozing" type deals - eg 0% or a LOB deal for which they've already paid a fee. This will result in loss of value to them.
4) People might be paying financing a course (as I did) with income to follow, cashing in an asset, waiting for a bond to mature etc.
5) People who have a short term cash flow problem might currently choose to pay very little off for a month or two but under the new regime could end up with late payment markers. As this affects their rating, it could prevent them getting low interest deals in the future.

What I'm saying is there can be many reasons why this change is NOT in somebody's interests - particularly as you are already free to pay more.

Perhaps it is in the interests of someone who just pays a minimum by DD and isn't really aware of what's going on. I'm guessing they might not be on MSE at all. Even in those cases it might not make much difference - as they pay more off, some of them will just run up to the limit again.

[Deleted User]

chattychappy wrote: »

Oh how patronising!

possibly,but nontheless true

chattychappy

woodbine wrote: »

possibly,but nontheless true

Not true in 2), 3), 4) or 5) above.

miss_missy

I also have MBNA and have been paying our debts back for a few years now and doing quite well however we have just over 14000 on the MBNA card at a low LOB rate so have been paying back higher aprs and just paying min on MBNA and have been happy to do this because it worked well for us now because of the changes we are unlikely to be able to go on without going on a dmp or something worse as the 140 extra per month will not allows us to pay more off our higher APRs. So infact i think MBNA are probably going to cause more people to be worse off and probably force them into DMP or IVAs. I called MBNA about this and they said there was nothing they could do i would have to pay the new minimum.
To all the the ever so helpful people posting on peoples threads who are asking for help about the increase as they can not afford it please stop telling how its better for them because although yes i agree the new minimums are better that is not the case for those of us with debts aready trying to pay them off this could and probably will be the thing to push some off us into debt plans which we didnt want and had tried to pay back what we owed fairly without going down that route.

System

[QUOTE=miss_missy;
To all the the ever so helpful people posting on peoples threads who are asking for help about the increase as they can not afford it please stop telling how its better for them because although yes i agree the new minimums are better that is not the case for those of us with debts aready trying to pay them off this could and probably will be the thing to push some off us into debt plans which we didnt want and had tried to pay back what we owed fairly without going down that route.[/QUOTE]


Almost everyone on this site is here because they have debts [myself included] its doing no one any good molly coddling people. MBNA like probably all c/c companys have in their t+c that they can basically do what they want re min payments /interest rates. An earlier post listed several threads on this subject and goes on to state its never been challanged why do you think that is ?

miss_missy

CHRISSYG wrote: »

Almost everyone on this site is here because they have debts [myself included] its doing no one any good molly coddling people. MBNA like probably all c/c companys have in their t+c that they can basically do what they want re min payments /interest rates. An earlier post listed several threads on this subject and goes on to state its never been challanged why do you think that is ?

im not telling anyone to molly coddle anybody however i was just trying to make people aware that when someone like the op asks for advice about whether they can reject the minimum payment increase people like yourself adding comments about how its better for them (it is clearly not better for many) as it will decrease the outstanding amount is not only unhelpful it is patronising i like many who have debt do realise that paying more will clear my debt quicker im not stupid but i dont want to pay more to MBNA at present and cannot afford to pay the extra without it causing more problems.