MBNA Interest Rate Hike - Can I Do Anything About This?

happytobehere

Hi,

I have a credit card with MBNA with £3000 at their normal APR (15.9%) and £2700 that I recently transferred onto it at 2.4%.

I have always paid on time every month and regularly make extra payments (not that much, but at least its something).

I'm about to start the final year of my degree and can't make big payments onto it until I graduate next year.

Anyhoo, I've received a letter from them this morning to say my monthly rate is going up to 2.2071% - I work this out at approx 27% - afull 11% more than I'm paying now!! :eek:

Before I ring them, does anyone know why it would go up so rapidly like that and can I do anything about it??

Thanks for your help

EDIT: BTW, my credit rating is fine - I've never missed a payment with anyone so can't understand why this would happen

tom188

Its happening industry wide as companies try to recover from the revenue stream loss due to reclaiming bank charges and increasing levels of default and bad debt provision needed as more and more people find they cant repay what the owe.

I suggest you call them and ask them to reduce it (tell them about other deals in the market place etc and maybe threaten to cancel but remember they may call your bluff). I presume in your position you do not have sufficient income to get a new 0% card.

Afahmaep

I received a letter this morning from MBNA putting my monthly interest rate up to 2.5292%! (which is over 30% annually)
I'm currently got 10k plus at 0% until the end of the year so it doesn't apply because it's a promotional rate BUT they have upped the minimum repayment to 5% of any outstanding balance instead of the £5 minimum.

Louise1521

I've had the same letter today. Nightmare.