Interest rate "re-pricing"

rufus_t

I've just called MBNA to ask a couple of questions and found out that the interest rate I pay has been increased from 13.9% to 26.9%!!!

I guess I know the answer, but how can they justify this?

It is the standard rate, not the cash rate; I haven't missed a payment or gone over the limit, but its just been put up.

When the dept that deals with these things is open again tomorrow I'm going to call and see if there is anything I can do about this, but any other suggestions would be useful.

Suggest also that other people check that this hasn't happened to them.

jimbo26

Lots of posts regarding this, some have even had their rates increased to sub prime credit card levels.

rufus_t

I'm at 26.9%. I'd hate to see what you consider to be sub prime.

clio

34 % or if your really unlucky 39.9% are sub prime rates

mhifoe

They are doing this to many of their customers.
My rate increased from 12.9 to 21.9 last month.

I paid mine off, then rang today and said I would cancel the card if they didn't reduce the rate. They immediately offered to reinstate the 12.9% rate.

jamalfatty

rufus_t wrote: »

I've just called MBNA to ask a couple of questions and found out that the interest rate I pay has been increased from 13.9% to 26.9%!!!

I guess I know the answer, but how can they justify this?

Trouble with variable rate credit cards (which pretty much all of them in UK are) is that they dont need to justify it, the rate can be raised or lowered (not likely I know) whenever they see fit as long as they give you the required notice.

Ring their retention department to see what can be done, threaten to close account may work or they may call your bluff.
Only option then is to either pay balance off, or move it to a cheaper card elsewhere