credit card charges/interest rates

ballyka

I'm new to this site and have a question.

I've recently tried to reclaim late payment charges from MBNA and been told that they feel their charges were fair.

However they upped my interest rate from 12% to 27.95% and the reason they gave was because of late payments so I've been penalised twice for the same thing.

Can they do this? I'm quite happy to forget the late payment fees if they'll return the 15.95% interest

Any thoughts anyone?

meer53

Yes they can.

DevCoder

You can reject the rate increase but they will effectively close the card for further purchases. Note you need to reject within a certain timescale of being advised of the rate increase.

TheMoney

Rate increases are informed to you well in advance of the change actually happening. The fact you missed payments then sends you into a higher risk bracket, which understandable would come hand in hand with a higher APR.

Atidi

ballyka wrote: »

I'm new to this site and have a question.

I've recently tried to reclaim late payment charges from MBNA and been told that they feel their charges were fair.

However they upped my interest rate from 12% to 27.95% and the reason they gave was because of late payments so I've been penalised twice for the same thing.

Can they do this? I'm quite happy to forget the late payment fees if they'll return the 15.95% interest

Any thoughts anyone?

12% interest? That's very low for a credit card.
Or do you mean it was a special introductory/promotional/priviledge etc. rate which they withdrew when you defaulted on your agreement?
27.95% sounds more realistic of their standard rate, and hence presumably why you reverted to that.