MBNA Lifetime Interest Rate Question

IrishGypsy

Hi All,

A few years ago I had a zero balance on my MBNA (who'd I'd already been with for years by this point) and asked them if they could do a deal to keep me. They offered me 7.9% for the life of the card on all transaction types (includes cash withdrawls amazingly - but I've never wanted/needed to test this) and I recieved this in writing (which I still have).

Now, the letter had NO end date mentioned anywhere (believe me, I've checked it over 5 times already) and I was wondering, with them having sold their CC business on to another company, whether or not this new company will have to honour this agreement when they take over?

(I don't need this card, but a backup of 7.9% card for genuine emergencies can't be sniffed at).

tlh858

The new company probably would continue with whatever terms you had before, but remember what 'for the life of the card' actually means - the card company could withdraw the card at any time, and so the 'lifetime' offer could end tomorrow.

chattychappy

I'm surprised by this.... I've heard of MBNA doing "life of balance" deals. I've also heard of MBNA doing a low interest rate for all transactions.

But I've not heard of both combined .. ie life of card on all transactions.

A new owner would have to honour the deal, but I agree they could close the account or reduce the credit limit.

IrishGypsy

chattychappy wrote: »

I'm surprised by this.... I've heard of MBNA doing "life of balance" deals. I've also heard of MBNA doing a low interest rate for all transactions.

But I've not heard of both combined .. ie life of card on all transactions.

A new owner would have to honour the deal, but I agree they could close the account or reduce the credit limit.

Well, I was surprised too, but I certainly wasn't going to say no!

Could they close the account even if I'm actively using the card (in small amounts) without my agreement if I've not broken any TOS? Reducing the credit limit wouldn't be a big deal anyways, but it's nice to be forewarned about potential outcomes of the new owners (whenever they take over).

Thanks again

OllyM

Have MBNA been sold? I thought the sale had been cancelled.

IrishGypsy

OllyM wrote: »

Have MBNA been sold? I thought the sale had been cancelled.

I haven't seen anything to the contrary and had recieved a letter a little while ago about their sale of their CC business to another company. I shall look online now I think...

OllyM

IrishGypsy wrote: »

I haven't seen anything to the contrary and had recieved a letter a little while ago about their sale of their CC business to another company. I shall look online now I think...

I think they've sold their Irish credit card business, but not their UK business.

udydudy

IrishGypsy wrote: »

Hi All,

.........They offered me 7.9% for the life of the card on all transaction types (includes cash withdrawls amazingly - but I've never wanted/needed to test this) and I recieved this in writing (which I still have). ........

Does the offer letter say that you have been offered a "promotional interest rate of 7.9% for life of the card"? or does it say that "your interest rate is 7.9% for all types of transaction"? the latter would only mean they reduced your interest rates and then can change your rates at any time in future.

If the former then I would expect it to be honoured. One more loophole they do have is that the rate of interest(if on promotional basis) is applicable if the transactions are done within a set period. i.e. on all purchase by a specific date(say 31st May 2010). All purchases before this date would be entitled and any purchases after would be at normal rates..

I would say double check the letter you may be missing something. if not then call them up and see what they have to say about it.

chattychappy

IrishGypsy wrote: »

Could they close the account even if I'm actively using the card (in small amounts) without my agreement if I've not broken any TOS?

Yep. They could just close it if they want to... you'd get time to pay off any remaining balance.