MBNA - extortionate interest rates

TellyTwit

Hello All,

I got a letter from MBNA yesterday, saying they were increasing my monthly interest rate to the equivalent of 34.9% per annum.

MBNA often increase their interest rates up suddenly, and thanks to advice on here, I have rung them up up, told them I will clear my balance and they will drop the rate back to 15.9% or similar instantly, just with a phone call.

HOWEVER, when I called them yesterday, they told me that the interest rate was the bank's current policy and that the rate could not be changed. I had taken advantage of a 0% balance transfer last year, and when my term is up in March, I will instantly be on 34.9% interest rate.

Luckily I can transfer my balance to another card, but very worrying for other customers.

TellyTwit

Just to clarify, I have an MBNA Platinum card which I have held for about 4 years. Also the most they have ever increased the interest rate to before was 24.9%.

vwman_3

The way things are going, Vanquis will be the card to get before long...

skybluesaver

Or maybe the Aqua card?

simonts

Done the same to me today...34.9% absolute robbery

jamescredmond

time to get out of mbna if this is the case.

god, I'm beginning to sound like dmg24 commonsense posts....

dmg24

jamescredmond wrote: »

time to get out of mbna if this is the case.

god, I'm beginning to sound like dmg24 commonsense posts....

You called?!!

That has to be the freakiest case of 'I'm just going to click on that thread'!

skybluesaver

MBNA are renowned for increasing the interest rate once the promotonal rate has expired. As long as we're all aware of this & have other options then it shouldn't be a problem.

Gordon_the_Moron

TellyTwit wrote: »

Hello All,

I got a letter from MBNA yesterday, saying they were increasing my monthly interest rate to the equivalent of 34.9% per annum.

MBNA often increase their interest rates up suddenly, and thanks to advice on here, I have rung them up up, told them I will clear my balance and they will drop the rate back to 15.9% or similar instantly, just with a phone call.

HOWEVER, when I called them yesterday, they told me that the interest rate was the bank's current policy and that the rate could not be changed. I had taken advantage of a 0% balance transfer last year, and when my term is up in March, I will instantly be on 34.9% interest rate.

Luckily I can transfer my balance to another card, but very worrying for other customers.

Funny, since it is the bank's policy, I just got a letter earlier this week saying when my 0% runs out in March (I will have cleared the balance so I am not bothered) the rate will be 21.9%.

So much for 34.9% being the bank's policy (RE: previous comment about Vanquis, at this rate a typical store card will be the card to have)

Bismarck

Not sure the 34.9% is policy...just think their risk-based-pricing model sticks you in a certain band when your deal ends and they won't negotiate from that point because the computer says no.....

They'd say it's not personal but it's just the way things are...

Certainly a good thing to be warned though and get it sorted early!

bholland

Similar happened to me.

see - http://forums.moneysavingexpert.com/showthread.html?t=728633

I called them and they left the rate at 15.9%