Disgraceful MBNA & Barclaycard

LULULU1

I have 2 credit cards which I have used as balances transfers. Both are at 90% plus of credit limit. MBNA and Barclaycard.

Both of these wonderful companies have increased my interest rates from about 17% to 25% each with the usual threats to freeze accounts if I should refuse the new rate.

I am fortunate enough to be able to pay them off when the due time comes but what a distasteful and underhand way for such organizations to behave.

Anyone else experienced this .

Lu

BoGoF

I really don't see what's disgraceful of varying the interest rate. A variable rate was what you agreed to when you took their kind offer of 0%.

copa_feela

Yes, banks acting within the terms and conditions that you agreed to, absolutely disgraceful.

_Andy_

As above. What exactly is 'disgraceful' about varying a variable interest rate? Oh boo hoo those nasty companies daring to want to make a profit. Disgusting.

_Andy_

And in what way is it 'underhand'?

maginot

So they give you credit free at 0%. After this ends you go onto their variable rate which you were told at the beginning. They have written to you in plenty of time telling you their variable rate is varying and that you have the option of refusing the change in variable rate and can just pay off the card and not use it again.

Absolutely disgraceful!

bengalknights

I think the word "Variable" means something here lol.

_Andy_

bengalknights wrote: »

I think the word "Variable" means something here lol.

Didn't you know? Lenders are only allowed to vary it if it means the rate going down. Otherwise it's "disgraceful", a "rip off", "mis-sold" blah blah blah

Fruit_and_Nut_Case

LULULU1 wrote: »

...the usual threats to freeze accounts if I should refuse the new rate.

This is usually seen as a good thing. You can refuse the rate increase. It's enshrined in law.

LULULU1 wrote: »

Anyone else experienced this .

Pretty much everyone, judging by the posts we see on here.

izools

LULULU1 wrote: »

I have 2 credit cards which I have used as balances transfers. Both are at 90% plus of credit limit. MBNA and Barclaycard.

Both of these wonderful companies have increased my interest rates from about 17% to 25% each with the usual threats to freeze accounts if I should refuse the new rate.

I am fortunate enough to be able to pay them off when the due time comes but what a distasteful and underhand way for such organizations to behave.

Anyone else experienced this .

Lu

Ah brilliant, an excellent opportunity to ask for the cards to stay at the old rate then, this will help you to actually pay them off rather than leaving them maxed out.

I'm happy for you that the credit card companies are willing to help you clear your debt in this way. The debt will go down much quicker with new spending on the accounts prevented. Just remember to reject the increase within 30 days of the date of the letter :beer:

YorkshireBoy

izools wrote: »

Just remember to reject the increase within 30 days of the date of the letter

It's 60 days izools.