mbna new terms and conditions

wibblewibble

Quick question as someone who has also just received this from MBNA - I realise I can ask them to reduce my interest rate (and am intending to do so) however it's the increase in the minimum repayment percentage thats going to hit me hard - whereas I currently pay £120 a month the change to 5% plus £10 will increase my minimum repayment to £370! Can I ask them to reduce the minimum repayment percentage as well as the interest rate and are they likely to agree to it?

2nd Question: this credit card is soley in my name and it's very unlikely that I could obtain a different card as my circumstances have changed - however hubby doesnt have a credit card and his credit rating is pretty good could he apply for a card and balance transfer my debt to his card?

purpleparrotuk

wibblewibble wrote: »

Quick question as someone who has also just received this from MBNA - I realise I can ask them to reduce my interest rate (and am intending to do so) however it's the increase in the minimum repayment percentage thats going to hit me hard - whereas I currently pay £120 a month the change to 5% plus £10 will increase my minimum repayment to £370! Can I ask them to reduce the minimum repayment percentage as well as the interest rate and are they likely to agree to it?

2nd Question: this credit card is soley in my name and it's very unlikely that I could obtain a different card as my circumstances have changed - however hubby doesnt have a credit card and his credit rating is pretty good could he apply for a card and balance transfer my debt to his card?

Surely that cant be right. They cant expect you to pay over twice the amount every month?????

Firsttimebuyer_4

Thats not right....its whatever is least of the 2 options

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EXAMPLE 1

Lets say you have £5000 outstanding and your APR is 12% (for ease of calculation). You would pay the least of

1. Interest charges + £10 - In this case it would be £50 + £10 = £60 minimum payment
OR
2. 5% of the outstanding balance. Which is £250

In this case you would pay £60

EXAMPLE 2

Let's say you have £1000 pounds outstanding and your APR is 12% (for ease of calculation). You would pay the lease of

1. Interest charge + £10. £10+£10= £20
OR
2. 5% of the outstanding balance. 10% of £1000 is £10.

In this case you would pay £10

However, the amount you pay must be at least £10.

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Hope that makes sense? MBNA makes it difficult sometimes..in particularily with the interest hike that came with that letter....mine went up from 14.9% to 29.9%!!!!

Cheerio

TAG

Quick question as someone who has also just received this from MBNA - I realise I can ask them to reduce my interest rate (and am intending to do so) however it's the increase in the minimum repayment percentage thats going to hit me hard - whereas I currently pay £120 a month the change to 5% plus £10 will increase my minimum repayment to £370! Can I ask them to reduce the minimum repayment percentage as well as the interest rate and are they likely to agree to it?

TAG wrote: »

Your minimum payment will be that months interest plus £10. We owe 7k and our monthly min payments are around the £95 mark.

The wording in the letter is not very good to say the least.

Firsttimebuyer is right.

wibblewibble

Thank you - I agree the wording is most unclear but it now makes sense and I can quit panicking - OK so a £30 a month hike due to the increased interest isn't exactly something to celebrate but I can just about afford that and compared to the fright I gave myself thinking it was going to be £370 a month it almost seems reasonable .... well ....almost ....

mikemike2

phew thanks guys, I was in same boat panicing as I got same letter .

stephen25uk

thanks for all the replys folks,reading the conditions again,i think the minimum payment will be your interest for that month plus £5,i think where it say as long as the payment is always over £10 means the actual amount you pay is allways over 10 pounds in total

MABLE

I have just got off the phone after speaking to MBNA. Despite of what I read here the customer service lady was very, very helpful and nothing was too much trouble. Also my interest rate remains unchanged.

Firsttimebuyer_4

MABLE wrote: »

I have just got off the phone after speaking to MBNA. Despite of what I read here the customer service lady was very, very helpful and nothing was too much trouble. Also my interest rate remains unchanged.

Can I ask what change they gave you in the letter?

And what did you tell them on the phone to make them change the rate?