MBNA is really taking the mickey with their CC interest rise! What are our rights?

turbobob

jamalfatty wrote: »

What I was really trying to get across was that the thread seemed to be going the way of encouraging people to complain to the FOS - my point was this will have little to no effect on whether they do review the APR, and it wouldnt as was suggested cost the bank money each time it was done

Just FYI the FOS case fee of £360 is payable by the firm regardless of whether the complaint is upheld or not. The exception to this if it is found to be outside of FOS jurisdiction (e.g. time barred complaints or complaints about investment performance).

jamalfatty

turbobob wrote: »

Just FYI the FOS case fee of £360 is payable by the firm regardless of whether the complaint is upheld or not. The exception to this if it is found to be outside of FOS jurisdiction (e.g. time barred complaints or complaints about investment performance).

Check the link I posted above, its only paid regardless of upheld or not if when the complaint is made, it warrants further investigation by a case worker. I'm no expert and obviously do not work for FOS but pretty certain they would not look into a complaint regarding an APR increase to 34.9% on a variable rate credit card. I'd be happy to be proved wrong if they would but suspect they wont.

turbobob

Well I think it would be a valid cause for complaint anyway. Its not just a variation in a rate which affects all customers with the cards (which I believe would be classed as a commercial decision which they wouldn't look at), its putting someone onto a much higher rate than standard based on a review of their account. This review may or may not have been carried out fairly, and the increase may or may not be justifiable.

I can't speak for FOS, but I'd certainly believe that it would require further investigation by a case handler, and not dismissed without further investigation.

maddriver

jamalfatty wrote: »

Not at all, do you understand how APR's are set? The risk to the bank of not recovering all the funds lent out is a major factor in determining rates. Therefore if someone is unable to get credit elsewhere that would suggest their credit-worthiness is not brilliant or they are at the limit of what lenders think is acceptable, thus they are a higher risk and the APR is set accordingly.

http://en.wikipedia.org/wiki/Risk-based_pricing

Okay, I've spent some time thinking about this answer, and I have to agree with the points made, but still feel something is missing.

Yes, I did miss payments on (in my case Egg), and on my other cards and even mortgage. This was in the middle of 2006, and since then I have been making regular payments to everybody of, at least, the minimum payments. My credit score has not improved since, but I have been keeping up payments to eveybody I owe money to.

So, since Egg didn't increase interest rates when I was missing payments, and generally in a financial mess, why now after 12 or more months of good payments? (think 18 to Egg themselves) Doing so now, merely increases the amount of time I will take to pay them off, as more of the money I do pay goes on interest.

I can't move to another provider, due to the history on my credit file. But while I'm making regular payments to them, I really can't see how I'm more of a risk than when I wasn't. I can't help but think the fact that I can't move away was the prime motivator.

m.colak

Halifax did the same to me saying that they were raising my interest rate from 17.9% to 27.9%. One phone call later stating that this was unacceptable as i had run my account within my limit for the last 6 months and i used the account (They had stating these were the reason's for raising the interest rates in the first place.) they agreed that they had made an error and returned it to the original rate. Don't be frightened of dropping the FOS name. Especially if the state these reason's in a letter.

moneypenny2k

I had a similar thing going on and they without demur dropped my rate from 29.9% to 23.9%. So I moved half my debt to a Citibank Card, I then went back to MBNA and said Ok I'm going to go if you can't do anything about the rest of the debt...

They told me that they have a policy that says they can't look at the interest rate again for 2 months, nothing absolutely NOTHING I said made any difference. I'll be paying the card off and having done with them.

CreditDevil

Hi All,

Saw this thread whilst searching the web and thought would join in!!

I have two MBNA cards... Mastercard and Visa...

Interest rates are now...

Visa: 2.5292 per month :rolleyes:

Mastercard: 2.2071 per month :rolleyes:

Absolute daylight robbery... so going to try ringing them shortly to find out whats going on and use the above points and see where that gets us...

Does anyone have a standard letter template at all for this so I can write to them as well...

My payments have basically doubled :mad:

lil_me

Was just looking for something like this, wondering if others had received the 34.9% letter aswell, trebling initial rates, crackers isn't it. Will get my partner to call them tomorrow. They kept reducing his limit which he wasn't bothered about as doesn't use it that much, then when he was on the phone he mentioned it and the guy on the phone apologised saying his account history was good so increased it back to the highest it ever was. Now this.....will let you know how he gets on.

Tallguy64

I just found out that I have a default judgement against me that has destroyed my credit rating. Three years ago I paid off my Virgin credit card completely, and tore it up. We then moved house. A year ago a credit card protection company apparently took £29.00 out of that account. MBNA (Who I assume have taken over Virgin cards) just kept adding on the credit then sold it too a debt agency, all totally without my knowledge. I now, apparently, owe £118.00. Why didn't they tell me? "We did ..To your old address! Why didn't you tell us you moved?" Why should I ? I'd paid the card off and torn it up! Tough! No credit for me then! What am I supposed to do? ) Nil balance to £118.00! Suggestions Please

INT1

Well done OP-You got further than I did, My account is with Cap ONE though, they increased 14.9 to 22.9
I settle in full and have never ever paid interest and I have pulled over £200 worth of cashback off them in the last 2 years.
I escalated a complaint via their message centre online and got a call back from a manager, I politely discussed about why the rise etc
He said it was down to reviewing all customer accounts and RBP etc. Now I know how RBP works as I work in the said industry but I didn't get any joy of them keeping my rate the same.

Guess I will just have to keep enjoying my cashback incentive whilst it lasts.