MBNA - increase in rates

k12479

Wilseus wrote: »

However, I still expect to be treated as a *valued* customer!

I think this is another thing people generally need to realise - their value or worth as a customer is likely to be a lot lower than they think it is.

Wilseus

Well that's where we disagree then. I pay financial institutions such as banks and insurance companies to provide me a service. If they fail to provide that service to my satisfaction then I'll simply sack them. I really couldn't give a toss whether they care or not, but what I do know is that if more people had my attitude then they'd perhaps learn that they can't get away with it!

callum9999

Wilseus wrote: »

Thanks for your comment callum9999. I am well aware that banks (and Building Societies, despite what they keep telling us) are not my friend! However, I still expect to be treated as a *valued* customer!

I *would* reject the increase, however I desperately need to get my kitchen roof fixed...

FWIW I will be able to pay the whole lot off several times over in about 1 year's time when I will get quite a bit of cash from my work share scheme! :j I'd just like to minimise the interest I am paying in the meantime!

I think you have 30 days to contact them about freezing the account (though confirm that somewhere else/from the letter first!) - in which case if you've "just" received the letter then you'll have time to apply elsewhere.

If your credit rating is ok you may even be able to get a card with 0% on purchases for a decent period, or a card you can balance transfer from MBNA to 0% (with a small fee normally).

If you get the 0%/better rate purchases card (with a high enough limit) you can then reject the MBNA increase and put new spending on the new card.

If you get the 0% balance transfer card you can move all the debt off the MBNA card and then start using it again for future purchases, albeit at a higher rate.

The ideal situation would be a 0% purchases card and a 0% balance transfer card - then all your current balance will be interest free (subject a one-off fee of around 3%) and fixing you kitchen roof will also be interest free (assuming they take credit cards). That may not be possible so try and make the best out of the options you do have.

k12479

Wilseus wrote: »

Well that's where we disagree then. I pay financial institutions such as banks and insurance companies to provide me a service. If they fail to provide that service to my satisfaction then I'll simply sack them. I really couldn't give a toss whether they care or not, but what I do know is that if more people had my attitude then they'd perhaps learn that they can't get away with it!

I don't think we completely disagree.

The bonus interest rate on one of my savings accounts expired this week. I called up and asked if I could have the bonus rate for new customers. They said no. Five minutes later I transferred a fairly substantial amount of money out and closed the account.

However, I don't feel betrayed or that they've 'got away with it', nor do I think they have any regrets, either. As callum9999 points out, it's business.

liubeliu

Wilseus wrote: »

Thanks for your comment callum9999. I am well aware that banks (and Building Societies, despite what they keep telling us) are not my friend! However, I still expect to be treated as a *valued* customer!

The are treating you as a valued customer. A valued customer is one that makes them as much margin as possible. As others have said, the computer tells them that they have a high probablity that you will stay if rates go up. This backfired but they won't lose any sleep as it frees up cash reserve to make money with someone who does stay despite rate increase.

They customers they loathe are those who open a 0% card and clear off as soon as the 0% rate expires and all they have earned in the 12 to 20 months is the 3-4% BT fee.

jonesMUFCforever

MBNA have been trying to sell their UK credit card business for years.
My opinion is that they put up rates to people who they consider a higher risk of non payment in an effort to manage them away if possible ie encourage them to balance transfer away to become someone else's problem.

giblet10

..and guess who is bottom of the Which? guide to credit card customer ratings..they want out of the UK so any lost customer is simply one less to worry about..