Not fair!!!Can they get away with these increases in interest rates?

shelovestobuystuff

I am proud of myself.I am being very good with my credit cards.All of my debt is now on fixed low rates or 0% rates.I pay off the min on the 0% ones and will pay them off in full before the rate ends.My low interest ones I pay more than the min so that its all paid before my low int% rate period ends too.
So mine are fine but my hubby also has one credit card.He is being very good with his too and not spending anything on them.He did a really big balance transfer onto his MBNA card at a good low rate about 18 months ago now.Every 3 or 4 months he gets a letter saying that they have revised his account and they are putting the monthly % interest rate up by x amount.
If he agreed to have debt with them at a certain rate are they allowed to just increase it whenever they fancy and can he do anything about it.
He doesn't use the card at all for purchases,he only has the BT,s on there.It was not a special time limited low BT rate offer but just a low rate which he had anyway.
Its a big balance so the apparant tiny increments they put the interest up by really add up,It looks like doing the BT,s was not such a great idea.
Any advice please.

CLAPTON

why dont you apply for a CC with a low life of balance offer?

exel1966

As it wasn't an intoductory offer, then yes, they can increase the APR every month if they wish to and there's nothing that can be done about it.
Time to vote with your feet perhaps ? There are plenty of cards out their to choose from.

wayoflife

Ok you must hurry with this one!!!

Get a Marks & Spencer & more credit card. It is currently offering 4.9% on balance transfers for the life of the transfer with NO HANDLING FEE.

This is BY FAR the best credit card for your situation, trust me.

Im not an m&s rep! I have one of these cards thats all and It is the best card at the moment for balance transfers

Make sure that when you apply you see how much your credit limit is, as you will need to take account interest added onto your account, so you always need a buffer to allow for this. I dont think you should have a problem judging by what youve put about your credit history, I got £3,000 straight away, and that was after only 1 year of building my credit from scratch.

For example if you transfer £5,000 on to this card your interest will be roughly £20.42 so make sure your not maxed out on your credit limit.

Also I would advise, unless you really cant do this always pay off more than the minimum payment, even if it is only a few pounds more as Im sure youve seen how long it can take to pay off.

Saying that if you have the money readily available (which I assume you havnt) then let me know, I will post something on how to make money out of this!!!!

This offer wont be long so get one now!!! its probably best to ring them up, on 0800 997996

If you need anymore help then ask! Let me know how you get on please asap!

J

Rafter

Sounds like MBNA have been sneaky with the terms of their balance transfer offer and reserved the right to increase rates.

To be honest it is their own fault for relying on a business model that involves designing hugely complex products that trap the unwary into paying a fortune for credit by making purchases on a balance transfer card, withdrawing cash, using overseas or all the other tricks and traps.

As wayoflife says, switch to M&S which is a guaranteed rate until paid off - just don't use the card - even the 0% on purchases bit.

Good luck.

R.

YorkshireBoy

If OP's husband has been a minimum payment payer, on MBNA's interest + £5 terms, then he may be in for a shock when M&S want 3% per month.

Having said that, have I seen that M&S are reducing this to 2.5% soon?

exel1966

Nothing sneaky about increasing rates as it wasn't a fixed introductory offer. The OP had a 'low rate anyway' and took advantage of that by doing a BT.

Just like all c/cards, the APR's can and inevitably will increase from time to time. Card companies are now having to fork out (rightly or wrongly) a lot of money which has been claimed back. They will recoup that any way they can.

wayoflife

YorkshireBoy wrote: »

If OP's husband has been a minimum payment payer, on MBNA's interest + £5 terms, then he may be in for a shock when M&S want 3% per month.

Having said that, have I seen that M&S are reducing this to 2.5% soon?

Yes they are changing it to 2.25%, I think it has already been actioned for new customers

even if they didnt he might be in for a shock, but hell be in more of a shockto find out how much extra interest he is paying each and every month but only paying 5.00 each month. I dont need to do the maths do I? lol

YorkshireBoy

wayoflife wrote: »

Yes they are changing it to 2.25%, I think it has already been actioned for new customers

M&S website summary box still shows 3%.

even if they didnt he might be in for a shock, but hell be in more of a shockto find out how much extra interest he is paying each and every month but only paying 5.00 each month.

With respect, you've missed my point.

Some people have a finite amount of money each month to allocate to bills. If the OP's husband has a short-term cash-flow problem, or other affordability issues, then at the moment he can 'ride them out'. Yes, moving to 4.9% APR will reduce the interest paid overall, but the fact remains that, at 3%, the monthly payments could be significantly more than they are now.

So, given the options may be to either pay more interest on MBNA or default on M&S, I would suggest the former would be preferable.

wayoflife

YorkshireBoy wrote: »

M&S website summary box still shows 3%.With respect, you've missed my point.

Some people have a finite amount of money each month to allocate to bills. If the OP's husband has a short-term cash-flow problem, or other affordability issues, then at the moment he can 'ride them out'. Yes, moving to 4.9% APR will reduce the interest paid overall, but the fact remains that, at 3%, the monthly payments could be significantly more than they are now.

So, given the options may be to either pay more interest on MBNA or default on M&S, I would suggest the former would be preferable.

Ok I do accept what your saying, obviously we would have to get the exact figures to work out how much the extra amount was to pay and how much to save e.t.c.

[Deleted User]

for every 0.25% base rate increase id expect a bank to at least want to put a 1% on top.

vote with your feet if you can. the only time i know of a friends rate going up was when he went over his credit limit they doubled his apr which is fair enough