MBNA is killing me @ 29.9% pa

phillw

GSDMum wrote: »

I told her we weren't happy with the situation and that we might go to the Financial Ombudsman. So she escalated the call to a more senior person. I didn't get the name of this lady (not that it matters) she explained we'd need an official claims number (?) before we could contact the FO, and would need to go through some sort of questionnaire procedure. I gave up at this point, I wasn't getting anywhere. It was all clearly becoming pointless.

That was a rookie mistake.

First you need to figure out what you're going to complain about, it has to be something that they are supposed to do.

The problem you'll face is that if the statements show the interest they are charging clearly then you have a responsibility to look at them. I've had interest refunded when a 0% purchases runs out and it's been unclear when I needed to clear the balance (they are all unclear on purpose to catch people out and see if people complain), but complaining about an entire years interest would be tough.

If they increased the APR but never gave you advance notice then you could try on a technicality. They'll probably just say they did inform you and if it was a long time ago then they'll argue you forgot and no longer have the letter. Making complaints is sometimes creative, but you have to have something to hang it on. They might give you £50 to avoid you pushing it further.

If you have a complaint then raise it and then if they refuse ask for a dead lock letter so you don't have to wait 28 days before you go to the ombudsman. Never say you might do something, they know you won't.

If you don't have a complaint and you take it to the ombudsman they'll just eat the cost, because they don't want to reward people for making baseless complaints.

Thanks for reminding me though, Natwest had sent me a questionnaire about a complaint I tried to raise which I put off then forgot to fill in.

Edi81

Sorry but credit card providers have been required to send annual statements for a few years so this could have been seen a few years ago.

Thanks to customers like you you’ve been subsidising all the 0% offers that we’ve had.

GSDMum

phillw wrote: »

That was a rookie mistake.

First you need to figure out what you're going to complain about, it has to be something that they are supposed to do.

The problem you'll face is that if the statements show the interest they are charging clearly then you have a responsibility to look at them. I've had interest refunded when a 0% purchases runs out and it's been unclear when I needed to clear the balance (they are all unclear on purpose to catch people out and see if people complain), but complaining about an entire years interest would be tough.

If they increased the APR but never gave you advance notice then you could try on a technicality. They'll probably just say they did inform you and if it was a long time ago then they'll argue you forgot and no longer have the letter. Making complaints is sometimes creative, but you have to have something to hang it on. They might give you £50 to avoid you pushing it further.

If you have a complaint then raise it and then if they refuse ask for a dead lock letter so you don't have to wait 28 days before you go to the ombudsman. Never say you might do something, they know you won't.

If you don't have a complaint and you take it to the ombudsman they'll just eat the cost, because they don't want to reward people for making baseless complaints.

Good advice thanks, there is no point in 'threatening' something, then not going ahead with it. It was made clear to the last person we spoke to we wouldn't be going to the FO.

Still, it doesn't do any harm to ask if they would consider dropping their APR rate. If they were willing to be realistic, they would still have us as a good customer. They're in the business of making money when said and done.

Years ago on a holiday in Spain, my husband had his wallet stollen. MBNA were brilliant, they made sure we had enough money at our disposal - that act at the time, though it was in their interests too I know, has kept us somehow loyal to them. I'll learn one day that in business there's no such thing :cool:

Craig5056

I'm not with mbna myself but I have a credit card with Barclays at 29.9%. I called them and just explained that the Apr was really high and yes i was making payment knock abit of but really it was mainly intrest i was paying without question they put me on 6.9% for 2 years might be worth another phone call?.

GSDMum

Edi81 wrote: »

Thanks to customers like you you’ve been subsidising all the 0% offers that we’ve had.

You're welcome :beer: LOL

GSDMum

Craig5056 wrote: »

I'm not with mbna myself but I have a credit card with Barclays at 29.9%. I called them and just explained that the Apr was really high and yes i was making payment knock abit of but really it was mainly intrest i was paying without question they put me on 6.9% for 2 years might be worth another phone call?.

Very interesting! Don't think it would be worth another call, the last person we spoke too was pretty insistant there was no way they would help.

phillw

GSDMum wrote: »

If they were willing to be realistic, they would still have us as a good customer. They're in the business of making money when said and done.

They still have you as a customer and are still making money out of you.

I don't know if you told them that your circumstances will make it difficult for you to move your balance elsewhere, or whether they already knew it because you'd paid them all that interest last year.

But now you've told them you've woken up to how much interest they are charging then they know that they'll make more money milking you for 29.9% APR than if they dropped the interest rate.

Your only real leverage would be if they thought you were close to going for an IVA.

You could follow the advice on

https://www.mbna.co.uk/understanding-credit/staying-in-control/dealing-with-debt.html

There is a number on there that might be different to the one you phoned before.

GSDMum

phillw wrote: »

They still have you as a customer and are still making money out of you.

I don't know if you told them that your circumstances will make it difficult for you to move your balance elsewhere, or whether they already knew it because you'd paid them all that interest last year.

But now you've told them you've woken up to how much interest they are charging then they know that they'll make more money milking you for 29.9% APR than if they dropped the interest rate.

Your only real leverage would be if they thought you were close to going for an IVA.

Yes, they were told our circumstances.

IVA is a new concept for me, and it's something I'll be researching. At the moment I've got a text message sitting in my mobile from the 'National Debt Advice' asking me to text them for a convenient time for them to ring me. But first, I need to know what's involved, and if it's something applicable to my situation. I need to form my questions clearly

Just to add, I saw that page yesterday, it's the number I rang.

Thanks again

phillw

GSDMum wrote: »

Yes, they were told our circumstances.

That may have been a mistake. In money, as in love, being desperate is a turn off.

But it might be your best play now. IVA is tough as it ruins your credit file for years, but that might be your best option.

GSDMum wrote: »

IVA is a new concept for me, and it's something I'll be researching. At the moment I've got a text message sitting in my mobile from the 'National Debt Advice' asking me to text them for a convenient time for them to ring me. But first, I need to know what's involved, and if it's something applicable to my situation. I need to form my questions clearly

https://www.moneyadviceservice.org.uk/en/articles/what-is-an-individual-voluntary-arrangement

You don't actually have to go for an IVA, I know someone who negotiated on their own & they got their credit card interest frozen for a time. They worked in the financial service industry, so getting an IVA would have been a problem. But they were missing payments & the credit card is reported on their credit file as in default, you may have to run up more debts before they'll start helping you.

Terry_Towelling

GSDMum wrote: »

BT card, that means a bank transfer card right? I'm pretty certain any loan or card would want a utility bill as proof of residence. Most online applications say: choose status, a) own your own property b) renting c) living with parents.

I've discovered our bank, NatWest, will offer us a 3.4% interest loan, but the debt is stopping the loan going through - it's a chicken and egg situation! We do have an overdraft facility of £7k on our current account, we've never used it, and I'm not too sure how that would work out, I'd prefer to stay clear of it. Pensions I'll also not go there.....

Sorry, BT stands for Balance Transfer.

Were NatWest aware the loan was to refinance that debt, not to add to it? If you've been with NatWest for a long time then they should know what sort of customer you are and might be more prepared to accommodate you. You'd probably need to go in person to your branch. Could you get a NatWest credit card with a BT offer?

Using an overdraft to clear finances could be fraught because overdrafts can be called in at any time and the charges might be just as bad. Sometimes, though, banks have been known to offer customers loans to pay off their overdrafts, so that could be a back-door route to getting the cheaper loan - but I'm not recommending you try that tactic.

If you are not truly struggling financially then trying to get an IVA sounds like a poor idea because of what it might do to your credit history. Negotiating in person, in branch, face-to-face for that loan is what I'd try. Perhaps the debt advisor you intend to contact can point you in a suitable direction.

Please don't give up the idea of refinancing simply because you think you won't qualify.