MBNA increasing interest rate on credit cards

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partnership

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I have 2 MBNA credit cards both of which were 10.9% interest rate. They are both up to their limit and I pay off the minimum payment each month. Total 16000 between two cards. I can't get a loan to pay them off until I clear a couple of other loans hopefully next year.
They have sent me a letter to say the interest rate on both cards is increasing to 16.9%. Obviously I am not happy about the increase and wonder if there is anything I can do. If I reject the change I am unclear as to whether they will want me to pay off the balance in full which I can't do or if I can close the account and just continue to pay it off.
Any advice welcome.
 
The 10.9% rate seem very low for a credit card. Was this just an introductory offer perhaps??
Would it be an option to switch credit cards to another provider to avail of a 0% on balance transfers offer??
 
quinerty said:
The 10.9% rate seem very low for a credit card. Was this just an introductory offer perhaps??
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I have an MBNA platinum card ant the rate has been 9.8% for a good few years,I used to just ring up there loyalty dept negotiate the rate downward every year or so...pointless really as I clear it every month.
 
Ireland's credit card rates are the highest in the EU as far as I am aware. I don't have the option of transferring the balance or taking out a loan. My only option is to close the account and continue paying off as I can.
 
partnership said:
Ireland's credit card rates are the highest in the EU as far as I am aware. I don't have the option of transferring the balance or taking out a loan. My only option is to close the account and continue paying off as I can.
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If your credit record isn't important to you there are other options.
 

The same happened to me. After reading the letter a few times and looking at their website, it seems that you can reject the rate change and pay off the balance monthly at your current (old) rates as long as you pay at least the minimum balance every month. The card is unuseable though. I'm not 100% sure, but there is nothing in writing to say that you need to pay it in full all at once.
 
I did this a few months back. You can chose to close your account and continue to pay at 10.9% - you must pay at least the minimum payment each month. You can no longer use the card though. Also, I think you still have to pay the gov duty (or whatever it's called) each year.
 
MBNA rate rise

I got the same letter - I guess it is across the board.

I have a large enough balance, but chose to close the account and keep paying it off at 10.4% rather than accept the increase.

I guess they're trying to squeeze as much money out of their customers, especially those than can't afford to switch lender.

No such thing as loyalty to customers any more.
 
same here...they want to increase my interest rate from 9.9 to 15.9%. i'll also decline the new interest rate. i don't use that card except for transferred balances anyhow so it won't really affect me. i'm just wondering though if they'll change the terms and conditions later for those of us who have declined the new interest rates and raise the minimum payments or something similar in the near future....hard to trust mbna anymore after an interest rate jump like that!
 
MBNA new credit card rate.

I got the letter today, increasing rate from 10.9% to 16.9%. Have been with MBNA for over 10 years now and would be regarded as a loyal customer.

My understanding was that MBNA was committed to Ireland for the long term however this letter tells me they are looking to run down their loan book by effectively pricing themselves out of the market with their new rate as their good customers will move elsewhere. Its obviously a sign of the losses they are incurring in the current market.

Wonder what implications this has for their work force in Leitrim????
 
I am also suspicious of this happening when MBNA want out though when i said this to the MBNA person ont he phone he said that they had been sold and were staying in ireland. I suppose my reluctance to just close and pay off that way stems from wondering if they will do deals like Bank of Scotland dand halfax did to convert it to a loan or something. I would hate to close it and then six months down the line they do something which might be more advantageous. i have paid them enough over the years!
 
I got letter yesterday but I think it said my gold card rate is increasing to 18.9%! Luckily its under a grand at present & if ever I had incentive to get rid it'll be now. Can't believe its been increased so much in one go, doesn't appear they want the business with uncompetitive rates like the new ones on the website. Sayonara MBNA
 
Its adious to MBNA from me also. I transferred my balance to a rival company earlier today at a 6 month promotional rate of 3.9%. The writing is on the wall for their employees in this country. At 16.9% (and a 6% increase) they are really sticking it to their customers!!!!!!!!!!
 
I got a letter today telling me my interest rate is going from 14.9% to 23.9% 9% increase
 
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