MBNA - extortionate interest rates

EvilKumquat

They've done it to me as well. It's really stuffed me as there is £5,000 on the card.

I got an egg card to juggle off but it only got a £2500 limit on it so I'm stuck eating beans and paying £750 a month for the next 3 months. Brilliant.

This price for risk stuff really annoys me sometimes, it seems like profiteering, I have a total debt of less than 3 months wages but it's pretty hard to make inroads when you have a loan and credit cards that decide £130 a month in interest is reasonable.

I did the notional credit score from experian and it was 850 and my last infraction was a late payment 3 years ago so I can't be that bad a risk surely.

What happens to banks you can have a conversation with, surely if you could just ring them up and explain what the situation was then they could appeal to the underwriters.

Edit: Just redid my score (I'm fully aware that it's pretty meaningless but I need the indicative to see if I'm being a tard) and it's 902 now. I f'ing despair lol

peediedj

had a mbna card,they were charging me minimum paymentof £25 on a £500 balance,so transfered it all to goldfish £600 balance £14 mth paymentt,stuff mbna

jamescredmond

dmg24 wrote: »

You called?!!

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

only kidding, dmg!

loopylu36

Hi

I'm new to this site, but have similar experiences to you all with MBNA. First of all after transferring a balance to them at 0%, our first payment was a day late (our fault I know) but they INSTANTLY put the rate up to the standard APR of god knows what. We rang them and said that we would repay in full if they didn't honor the 0% and they agreed they would. However, 0% up soon and we also will be paying 30% +. I say "we" but this is my husbands card - I have one also with them with £1,800 o/s and they want nearly £90 a month minimum payment - paying that up asap!!

They are clearly trying to sc*ew the customer who cannot shift the debt or repay it and who is consquently the most likely to be in the most difficulty - this Country is worried about reccession - HOW IS THIS HELPING??! I know people have to be responsible for their debt, and certainly to keep on lending will also not help, but surely these interest rates have got to be reasonable, so people stand some chance of being able to pay them back?

One last point, I have had three credit card reductions in credit limits within the last few months - interestly just after I have paid large sums off the balance. They certainly made me feel like I was a bad risk (certainly owe some money but always pay on time) but maybe it's cos they are no longer making money from me?

brightonman_2

I'm an Alliance & Leicester card holder, which is nowadays owned by MBNA, and I had precisely the same letter last week, telling me that my APR was being hiked to 34.9%.

I was absolutely furious, but decided to wait until I had calmed down before calling them, which I did today.

After going through all their automated systems, I held on to speak to an operator, even enduring their pre-recorded message that "...our operators have no additional details about the changes to your terms and conditions".

So, I finally made it to a human being, and demanded an explanation about why they had raised the interet rate in this outrageous way. She told me that it was a general policy change in the bank, and that this would apply to all its credit card borrowers.

This was a surprise, because (especially following Egg's antics) the letter had been worded in a way that meant I felt singled out for this excessive, punitive treatment. "Oh, no", she said, "this applies to all our customers."

I told her that this seemed a bizarre policy decision to me, so I would therefore be taking my business elsewhere.

I was stunned by her response.

"Oh, well, in that case, we don't want to lose your business, so we can leave your interest rate as it is if you like."

Pardon?

"Yes, we don't want to lose any customers, so I have the authority to reverse the decision on your account."

So, because I've rung up to complain, you'll reverse the decision?"

"Yes."

And you'll put that in writing?

"Yes, of course."

Ummm, well, I dare say there's no way I could fathom your baffling decision to impose an interest rate that you are prepared to instantly reverse, so okay, please confirm it in writing and goodbye!

So, if any of you have received the letter from A&L / MBNA, get on the phone right away (the A&L number is 0800 028 1495) and tell them that you'll dump your card unless the decision is reversed.

I just feel angry on behalf of all the people who don't use this forum, who might not realise this is possible. Another case of a bully-boy bank preying on the weak, just seeing how much it can get away with. this is scandalous!

Halloway

I have an MBNA card with a 0% per cent balance until October. I also received a letter today detailing changes to the terms and conditions. The one that caught my eye (if anything printed in 6pt type can ever catch ones eye...) is that the minimum interest charge is now £1. So if you incur 1p interest, it costs you a quid. Do other credit card companies do this?

IrishGypsy

For those of you who have been with MBNA for a few years, you can do what I done, and balance transfer/clear the balance, and threaten to leave. They can actually reduce the APR to 7.9% for the LIFE of the card! (and not just the life of the balance). They even sent me a letter confirming that this APR was applicable to ALL transactions on the card.

I have subsequently had to endure them trying to claim it wasn't for life, but again, a simple explanation of me advising of the letter (which in no place states the APR I received was variable or subject to change) clearing the balance and closing the account is enough to get them to back-track.

It's crazy to think that a non sub-prime cc company would go as high as 35% APR, but as it's already been said, politely remind them that you can clear the balance in full immediately and take your money elsewhere should they not offer you a better deal. Works more often than not!

lambcc

I rang MBNA today to check on my interest rate and nearly fell off my chair when they confirmed it was 34.9%. I spoke to their customer loyalty team who simply said this was the only rate available for this account. I have had the acount for many years, using it more recently for a self-build project.

They were unbeleivably unhelpful. They hide behind junior staff and the last lady I spoke to kept interupting me every time I spoke. When I complained about this she put the phone down.

MBNA don't care about their customers, just their shareholders. They are less of a credit card company and more like a loan shark company. The government and FSA need to bring this company back into line because they are causing further hardship for many people and they cannot justify such high rates during a recession and when base rates are so low.

sweetbutternut

It's fine when you can threaten to take your business elsewhere but so many people would be stuck with the 34.9% rate if they can't transfer their debt or can't pay it off and the bank knows this and they are exploiting the situation.

St0lli

I have just had my MBNA rate cut from 34.9% after speaking to the MBNA account review team on 0800 0289170 after seeing the number on another thread.

The guy carried out a review whilst I was online and cut it to my previous rate which was still astronomic (27.9%) but unfortunately I don't have any option but to accept it. The only downside is that I can no longer spend on my card but that is no problem to me but thought I would mention it to others who want to give them a call as he only mention the restriction as an afterthought!

HTH!