Naming and Shaming MBNA/Virgin Credit Card

HappierTimes_2

Hi Everyone

Just wanted to name and shame MBNA. I have had a Virgin mastercard for nearly two years. In that time I have never missed a payment and have had one late payment (less than a week). They have reviewed my account and have increased my APR by 14% - bringing it up to 34% APR.

I phoned to ask why and they said it's because interest rates are going up. It's more likely because I have reached my limit and and can only pay slightly more than the minimum payment every month.

Fortunately, I have a new job and can concentrate on paying off this card and then cancel the account. If anyone out there is thinking about getting a card through MBNA, I would reconsider.

jay78

Did you try to get reduced? Are you in a position to apply for a card with a better apr?

HappierTimes_2

Hi Jay

I have to admit that I was so annoyed that I didn't even ask about a reduction. The woman I spoke to said that under my credit agreement they were within their rights to do it.

I recently applied for a visa card through the co-operative bank and was turned down.

I will also contact MBNA again. As I've been a good customer, I really think they should look at it again.

Thanks!

HT

MABLE

We have held MBNA cards for several years now and have never had an issue with them. Because one of your payments was late this no doubt had a bearing on your apr being increased. It seems to be with any card company if you step out of line (even by accident) the penalties are harsh.

We always set up direct debits for the min payment to safeguard again payments being received late.

mrtg0525

I doubt that it's the late payment that triggered the increase, although it may well have to do something with the size of the increase.

I've had a Virgin/MBNA card for quite a while, originally for stoozing purposes. Took advantage of another of their 0% offers recently and the week before said offer expired, I got an nice letter that they were hiking my interest to the tune of 10%pa - from 14.9% to 24.9%. No late payments, nothing.

Needless to say I shall be taking advantage of the fact that I can transfer the remainder of the balance to another one of my cards that offers a considerably lower interest rate. And then close the Virgin card.

wonkyferg

The reason for the possible increase to your apr is due to a team called RDU standing for Risk Detection Unit.

For example your are a risk if you use the card for cash withdrawals, also after you missed this payment a credit search could possibly over been done uncovering the fact you have been applying for more credit which shows you as being credit hungry which is also a big risk.

Dylanwing

Is RDU an acronym for profiteering?

Lyndsey_2

I have a Virgin card with a zero balance and they still hiked up my interest rate and I have never made a late payment. Cancelling this account is now on my to do list!

ontheup_3

There is another thread that covers this , your late payment and the amount on the card wasnt anything to do with it , virgin took a block of over 5000 customers and hiked the intrest up some was more than double because of the rise in intrest rates , my F-I-L had a letter stating this hike and i told him to ring them and they dropped it back down to 13.9%

I seem to remember others rang some got it dropped others didnt but hey its well worth the try !!

HappierTimes_2

Thanks so much for this information. I'll get on the phone to them tomorrow morning.

HappierTimes_2

Hi Everyone

Thanks for all of your advice. I have emailed Virgin/MBNA and have asked them to reinstate my former interest rate. I doubt if anything will happen. Apparently, this is how they run their business.

I have done some research today. This sort of interest rate increase is common with MBNA cards. The web is full of stories of people who have found themselves in serious difficulty because they couldn't make the repayments. (They start someone off with a low interest rate and then hike it up when they feel the consumer is financially vulnerable.) Apparently the OFT have investigated MBNA because of the level of complaints.

For anyone out there considering getting a card from MBNA, please do yourself a favour and don't!

HT