MBNA New Rate 34.9%

Turnover

Hi,

I'm new to the board but have been reading it for some time.

Anyway I've just had a letter from MBNA re new terms and conditions. The new rate is 34.9% from 24.9%. This is a very heavy jump.

I did miss a couple of payments during the year but have managed to get up to date.

Owe then about £15K.

I think next year is going to be very difficult for a large number of people.

Cheers

PoorDave

Any chance you can transfer this balance to a new card with a lower rate? Have you tried applying for one?

Turnover

Pretty maxed out on existing cards.

Self employed so I have tried with no luck to get new cards.

New monthly payment £750.

This is going to get tricky.

Firsttimebuyer_4

Hey,

I am in the same situation as you...

I was on a 0% balance transfer offer for them which ends now...After that the interest should have been 14.9%. I just got a letter stating it has been increased to 29.9%!!!!

This double my monthly outgoings and I will struggle to pay it. I did phone them up and asked for it to be reduced but they basically told me "tough luck". I have about £4.8k outstanding and I had calculated my monthly interest outgoings to be roughly around £60 per month...now its going to be £120 just in interest!!! Plus whatever I can afford to pay down on it...which won't be much!

I have never missed a payment nor is there anything adverse on my credit history. I too have too much debt so won't get another card (I wont even bother applying).

I thought I had my monthly budget planned and it just about balanced....then I get this crappy letter sent from MBNA........it just plain sucks screws up my budget big time.

I will try to send them a letter complaining but I don't think I have a leg to stand on.......

daveboy

I had the 29.9% letter today as well....here starts the job of moving what I have elsewhere (not as much as some others, just £800).

MBNA are having a laugh....2.2071% from 1.2408% a month for me at least.

Once I've paid what I owe credit cards are banned for sure.

mummytofour

I got a letter yesterday from them saying they are putting the rate up to 25% for us, I called the CCCS today and have app Friday.

purpleparrotuk

This is just stupid. I am struggling as it is. How do they expect people to pay over twice their normal monthly payment when they find it hard to make the payment already!

lililou

I called them up to say that I just couldn't afford that rate and tehy asked me what I could afford. This was a few months back though. WOuld it be worth calling again and being put through to their collections dept? I think that is where I asked to be put through and teh advisor put me on hold and then came back with a better rate. Might be worth a try.

montheton

got about 6k on 0% till may, then should go to 15.9, but recieved the same letter today going up to 34.9%.
never missed a payment in the last 6yrs, yes the apr is varable but to more than double is extortion.
this is the sort of apr you expect from the dodgy rip-off companys.

Firsttimebuyer_4

Seems like they are trying to recoop money lost elsewhere in the credit crisis.....

Are there no laws against increasing the interest rate by this much....I know it's variable rate but this is just taking the *beeep*

MBNA is owned by Bank of America.....

http://www.ft.com/cms/s/0/19ef7476-a8e4-11dc-ad9e-0000779fd2ac.html
Bank of America, the largest US bank by market value, on Wednesday warned that fourth-quarter results would be “quite disappointing” because of loan losses and asset writedowns.

HeadInSand_2

Seems silly though - they have disappointing profit results due to bankruptcy etc, so they increase APRs on a lot of CCs - which in turn will probably push a lot of people to bankruptcy. If they'd just left them alone they would still have made a handsome profit and more likely than not retrieved the original sum lent.