MBNA credit card hell

bigstevex

MBNA have done this twice to me in as many months, BOTH times, i've got them to lower it again. Both times it was roughyl doubled from 6.9% to 12.9%

I just harassed them for a manager and stated that a 100% (not an actual 100% increase) increase in the interest rate was totally unacceptable and that I wanted to make a complaint etc,

Just keep trying ringing them. Failing to make the minimum payment for the previous month might now go against you though,

also I had a £8900 limit

Diamond66

I can only sympathise but not offer any advise. MBNA are a ruthless credit card company (I used to be with them). There must be something someone can do about this (MARTIN!). Surely they are increasing the debt problems of an individual which must be against good banking practice???

I would love to know what Martin's view is of this sort of thing.

misstree_2

Diamond66 wrote: »

I can only sympathise but not offer any advise. MBNA are a ruthless credit card company (I used to be with them). There must be something someone can do about this (MARTIN!). Surely they are increasing the debt problems of an individual which must be against good banking practice???

I would love to know what Martin's view is of this sort of thing.

I would be interested in hearing his views too - how do I get his attention?


i totaly agree with what you said about it increasing the debt problems of an individual. If APR's were more sensible, then people would be able to make repayments and clear debts much more efficiently.

I was thinking of applying for one of those cards that WILL accept a person with bad credit, but then again the APR's on them are even worse, but it would help get MBNA off my back.

misstree_2

I thought I'd do an update on this thread.

MBNA did lower my interest back down to what it was previously (this happened in Feb I think), but because I'd accumulated arrears for the time that it was increased, I have still an ongoing problem with them.#
I keep getting letters off them and off RMA (the credit collections agency), and have made countless phonecalls to each of them.
Everytime I phone MBNA, I have to go through the whole story again in a lengthy phonecall. I keep explaining that I will be able to pay the account off in a few months and although that gives them some satisfaction, it's still not enough.
I have been asked to have a consolidation loan, which I've refused and asked if I can borrow the money off friends or relatives even.
I have been advised not to go on a reduced payments plan of any sort, as it will affect my credit rating considerably.
The phonecalls are so repetitive, it's almost laughable!

I have just received a really awful letter off them basically saying that because I have persisted in non payment they have been forced to withdraw the credit line and inform the credit reference agency!
The last phonecall I made..about 2 or 3 weeks ago, I was told that this wouldn't do me any 'servere harm with the CRA unless I was on a reduced payment plan and that MBNA updated them on a yearly basis. But it seems that this isn't so. Also the last conversation I had with them, they basically told me that there was nothing they could do for me.

I have been so stressed out with all this and annoyed because I have done everything I could do to keep in touch with them, and been totally honest with them, but I don't think I would've been treated any worse, had I completely ignored all their letters and carried on regardless! They never even acknowledged a lengthy letter I wrote them a while back.

Anyway, my partner has offered to help me out by paying the arrears through his credit card. I have declined up until now as I naively thought I would get more help and understanding off MBNA - pfft!! I feel so terribly ashamed about this but cannot afford to let pride get in the way, as I will just keep incurring charges and get into even deeper trouble.
This company are complete B******s though!!:mad:

tishywish

I sympathise, I'm having problems with MBNA at the moment as well although the constant phone calls have stopped since I wrote to them and GVI. The man I spoke to initially was helpful but a few days later I had a letter from them (dated day after I first spoke to them) saying they are withdrawing the line of credit from me. I think I'm going to be able to clear my arrears next week but my interest rate has risen to an extortionate amount too.

Good luck getting it sorted.

misstree_2

tishywish wrote: »

I sympathise, I'm having problems with MBNA at the moment as well although the constant phone calls have stopped since I wrote to them and GVI. The man I spoke to initially was helpful but a few days later I had a letter from them (dated day after I first spoke to them) saying they are withdrawing the line of credit from me. I think I'm going to be able to clear my arrears next week but my interest rate has risen to an extortionate amount too.

Good luck getting it sorted.

Hi tishy, sorry to hear you're having problems with them too. Have you asked them to reduce your interest rate back down to what it was. It can be done, as they did do it for me. Just tell them that you cannot afford to pay it at the higher rate.

I rang up earlier and spoke to quite a nice man that deals with the financial probs and..yet again, related the saga. He was quite efficient and confirmed that going on a reduced payment plan would cause me serious probs with my credit file for 6 years and that if my problems were going to be short term, then it may not be the best thing for me. He said that I had a really good credit history with them (wow, a compliment!:j ), and if I could make even a small payment now, that it would help. As I was discussing my situation with him, my partner grabbed the phone off me and proceeded to tell the man that he would pay the arrears - £338.
After the phonecall, I wept tears..partly of shame and pride mixed with absolute relief!

tishy, I really do hope you'll get this sorted, I know what a massive headache it is.
Loads of luck!

Locke

I've got an account with MBNA but I don't owe them any money on it, I had my new card come through the post the other day so I rang up to register it and got asked if I wanted to make a balance transfer at 34.9%:eek:

It was only 15.9% last time I used it.

misstree_2

Locke wrote: »

I've got an account with MBNA but I don't owe them any money on it, I had my new card come through the post the other day so I rang up to register it and got asked if I wanted to make a balance transfer at 34.9%:eek:

It was only 15.9% last time I used it.

That is absolutely ridiculous! When I asked them why my interest rate had increased so much, I didn't really get a logical explanation...basically I don't think anyone really knew! One person actually told me that from time to time, they will pick out customers at random and increase their rate. Still ridiculous and not to mention unfair imo. In fact I find it hard to even understand if it's legal.
All what's happening with the economy and this credit crunch worries me though, that this is the sort of thing that we're gonna be hearing about a lot more. :mad:

doingwhatican

I wonder if they are increasing the rates like this just to get poeple to pay back their debts - a bit like Northern Rock are doing - putting the rates up alot so that you are forced to look else where, and in the mean time make more money from you with the higher interest rates.

NickX

It really is disgraceful, hiking rates from 15.9% to 34.9% is more than a 100% increase. I wonder what the OFT (Office of Fair Trading) have to say about this, especially in a climate of falling interest rates.

It smacks to me of Banks panicking over defaults in the sub-prime sectors, and therefore pushing rates up as far as they reasonably can to maximize revenue whilst they can and before the accounts go into default.

It is short-term reaction and amounts to Banks penalising customers because of the poor business decisions taken by their investment managers.