Sudden APR Hike - How to Query it?

gypsymoth

Hi All

Received letters from MBNA and Santander in Feb informing me that my APRs would be increasing in April.

MBNA's standard APR is going up from 18.9% to 25.9% for purchases, while balance transfers are up from 20.9% to 29.9% - big old increases!

Needless to say, I use these cards for their 0% deals and regularly move money around, but these letters were a cause for concern. My main worry is that I'll not be offered another 0% deal on them in the near future

The key question though - why the hike from two different providers?

I had an issue with an incorrectly reported mortgage payment that has since been removed from my credit file - this occured in January. I also applied for another credit card in Jan but I did reduce the available balance on another card at the same time.
I wrote a post about the mortgage issue here (and got some useful answers) - https://forums.moneysavingexpert.com/discussion/3897809

I'd like MBNA and Santander to explain their rationale for the hike. What is the best way to do this (and possibly reverse it)? I called MBNA earlier and was told there were no notes on my account to suggest I was a risky borrower - the call centre person said it was possibly a hike right across the board but I didnt believe her

Has anyone else had MBNA hikes recently?

Any advice / suggestions appreciated

Thanks, G

ermine

Yeah, I had a similar notice from MBNA. I ignored it. I'm using their 0% deal but I've got their cash in a Nat West savings account so when the 0% deal ends they're welcome ot their money back.

I simply assume that it's the invisible hand of the market in action. They do it because they can.

Butti

It probably is a hike right across the board and has nothing to do with your credit worthiness. I asked the same thing of M&S money about two years ago when they did it to me. I managed to get them to hold the rate by not putting anything else on the card. Provided I just pay it off they will keep the rate the same.

B

gypsymoth

ermine wrote: »

Yeah, I had a similar notice from MBNA. I ignored it. I'm using their 0% deal but I've got their cash in a Nat West savings account so when the 0% deal ends they're welcome ot their money back.

I simply assume that it's the invisible hand of the market in action. They do it because they can.

Cheers

I originally ignored the letter and thought the same thing - the credit market tightening, and they want to recoup some losses elsewhere

Keen to get to the bottom of it though, given the issues I had with my mortgage

marvin

Butti wrote: »

It probably is a hike right across the board and has nothing to do with your credit worthiness. I asked the same thing of M&S money about two years ago when they did it to me. I managed to get them to hold the rate by not putting anything else on the card. Provided I just pay it off they will keep the rate the same.

B

They have to offer this have a very juicy 3.2% with Cap one from telling them I wanted to reject the rise.

http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increases

But you are in effect closing the card and really turning it into a repayment loan.