Virgin increase interest rate!

mark20s

Hi

I'm wondering if any of you have any advice or have been in a similar situation?

I have a credit card with virgin limit of £10900, balance of £10750. When i took the card out a couple of years ago the interest rate was 12.9%, in October 07 they increased the rate to 25.9% then this month i have recieved a letter saying they are increasing the rate again to 34.9%. With my other debts it is impossible for me to get a 0% deal or a low transfer rate.

Has anyone had this problem and how did you get around it?

Thanks for any advice

exessexmum

No advice, but I can sympathise. Our Virgin card was taken out on a 0%, rate is now 29.9%. Fortunately we managed to BT most of the balance off and only have about £1000 left on it, which is now our priority debt at that rate!!

Thomas99

This has been happening for ages, there are loads of threads, usually involving MBNA as the background issuer. Happened to me with Abbey card. I payed it off pronto, now the scum bags are offering 0% till Nov. (with transfer fee) because the card is clear.

CannyJock

Sounds like you've got nothing to lose by applying for another card.

Do the free credit report check through Experian (see main article or other posts for details if you need them) to see what it shows - then do the Smart Search at Moneysupermarket to get an indiciation on what you're likely to get.

If I was you I'd be going for a non-MBNA card and keep your fingers crossed that you can get a decent credit limit. Even if you don't then will still be worth moving at least part of the balance onto a lower interest rate. Again, personally, I'd apply for a couple of new cards if I had to just to get off that interest rate.

Also, no harm in phoning your MBNA card services people and challenging the interest rate - advise them that unless they reduce it you'll be moving the balance elsewhere and closing the account - what have you got to lose?

And of course, if you're got genuine debt then as a matter of course you should do Martin's budgeting exercise and work out a plan to get rid of the debt asap using every trick you can glean from the articles and forums.

mark20s

Thanks guys, i appreciate the advice.

mark20s

Thanks again.

I phoned MBNA and spoke with the interest department, as i have always made payments on time they offered to reduce my interest rate down to 21%. While not brilliant it's better than 34.9%.

I will always phone them direct in the future if have any issues.

simonts

As posted above they are doing this to a lot of customers, They have done it to me 3 times now! so do not think that is the end of it..A few months and your rate will be adjusted again.

mcrfan

I would just like to point out that they aren't being this helpful with everyone!
They have put my apr up to 34.9% and with the minimum payment hike I don't know how I am going to cope. I tried ringing and they flat refused to budge on it. I have had the card for a couple of years and I had one problem with a late payment (only one day) last month that is it.
They suck - avoid!!!

YorkshireBoy

mcrfan wrote: »

...and with the minimum payment hike

What minimum payment hike?

speedbird1973

There isn't a min repayment hike.

The min payment has changed to interest + £5. Which may be a little higher than your old 2% payment.. However the capital payment will be much reduced (a fiver) and the interest much increased, The actual payment wont be that different/

The letter amending the T&C is incredibly unclear, and it looks like 5% is the min repayment.

That said at 34.9% I'd recommend paying 5%!

Benthosboy

CannyJock wrote: »

Also, no harm in phoning your MBNA card services people and challenging the interest rate - advise them that unless they reduce it you'll be moving the balance elsewhere and closing the account - what have you got to lose?

I tried that one with LloydsTSB last week and they wouldn't. So I did.

Tomorrow I shall pay off the remaining balance of £170.00 and then they can stick their £10000 limt, 26.5%APR card where the sun don't shine.

And I've filed the corners to a point in readyness :eek:

Martyn.