MBNA Interest Rate 34.9% - how did it get this high?

[Sunshine54]

I took out an MBNA credit card about 14 months ago with an interest free period (no balance transfer) of about 6 months I think then the interest rate was (I need to check) around 14% thereafter. I have maintained all my payments of the minimum balance until February and wrote to them advising I have financial difficulties and am preparing income/expenditure etc. They wrote back refusing the freeze interest and advising that the current rate is 34.9% - how did it get so high?

is there anything I can do? I am going to send for a copy of the agreement but it's such a ridiculous rate that I know absolutely that I wouldn't have signed up to that.

thanks in advance for assistance/advice

[Sunshine54]

actually I suppose I may have signed up to that if it was hidden somewhere in the small print

[BankBailoutNo3]

Have they reduced your credit limited as well?

 

MBNA will have noted you have been making only minimum payments each month.

 

You MAY have been identified as high risk (by them) and so they increased the interest they charge you to ensure that they get as much money back from you as possible before you default. Was coverage in the newspapers few months back about them increasing their APR's.

[WelshMam2009]

Don't delay and hurry up and get your personal expenditure form back to them asap.

 

I have had my interest and charges frozen with MBNA since 2006.

 

They don't normally tell you this, but, in my experience they will accept monthly repayments equating to 1% of the outstanding debt and freeze the interest etc. You will, however, need to state a valid reason for the DMP such as ill health, job loss, divorce etc....but am sure you know this already.

 

Given that the Bank of England has reduced the base rate to 1% then charging almost 35% is totally extortionate!!

[Sunshine54]

thanks very much. I have been away for a week so just catching up with my multiple financial issues. I will get the info to them asap

regards

[Hopster]

I have an ABBEY C/C also charging 34.9% even though they told me today that the monthly charge was 2.529% which multiplied by 12 = 30.348% to explain. I also have a MBNA card (same company as Abbey) where they are charging 34.9%. I believe that both agreements may be unenforceable and I am trying to prove this through a legal chappie. Let me know what you are doing..........................

[Sunshine54]

hi I'm going to have to do more research on the order in which to tackle these things.

 

I have written to all my creditors advising of my financial difficulties and that I am producing income/expenditure details and will contact them(will have to send that off very quickly)

 

I have one Court Case pending from Egg (subject of a different thread) II have written to the Solicitors on this asking for the agreement and inf.

 

I have written to Barclays and Egg asking for copies of the agreements

 

I have written to Barclays and Egg requesting all the info on my accounts

 

MBNA refused to freeze interest and charges so I guess that I now have to go down the same route with them although I doubt there will be anything wrong with the agreement as it was only taken out at the end of 2007.

 

I am going to investigate the PPI element of the Egg and Barclays agreements to see whether any of them are 'dodgy'

 

I have a concern that I may go around in circles on this repeating stuff or missing something so I need to understand the chronological order in which I should best be tackling this. - if anyone could help or point me to other areas of the site for advice it would be much appreciated

many thanks to anyone/everyone

[Hopster]

there must be a solicitor somewhere who knows about CCAs. They could make fortunes. I cannot believe that MBNA and others can get away with thise interest rate charge. I have spoken to one who is going to look into the enforceability of CCAs but I don't have much confidence.

[Sunshine54]

good evening

it's been a while since I posted on this thread. The past months have seen various letters going back and forth between myself and MBNA.

 

I received the threat that they know I'm a homeowner and they will seek a charging order, I've had offers of an almost 50% reduction if I could pay the balance in full and an option of a 5 year plan with frozen interest and removal of charges if I pay off the full amount in that period, whilst within the period that I had to consider this offer I had threats of legal action, and requests to call to agree a repayment plan. finally today (still within the timescale for me to consider the offer of repayment/reduced balance) I got a letter advising that they will write the debt off at the end of this month if I don't contact them to agree payment.

They also say that the write off will not however stop recovery actions including recovering the balance from the equity in my home by way of a sale or re-mortgage.

 

Can they still chase me for recovery of the debt if they write it off? I suppose the answer is yes but it seems a funny thing to tell me

[Massamum]

hi Sunshine, sounds very similar to what happened to me. Interest rate hike, charging order etc and then informing me they were writing the debt off. Next thing I heard was from Link saying they'd bought the debt from MBNA. Don't want to worry you but perhaps its best to be prepared that they probably will sell the debt on.

[Sunshine54]

hi M

 

I forgot to add that they also wrote a couple of weeks ago saying that they would sell the debt at the end of the month.

 

I've learned so much about the tactics of the financial istitutions and solicitors over the past few months and it's really quite sad. I never would have believed the underhand and bullying behaviour if I hadn't read so very many accounts on here and then been on the receiving end myself.

 

I'm going to fight though - can't make it easy for them

 

thanks for your input

[Massamum]

good luck Sunshine, give em hell

[Sunshine54]

hello again

 

having heard nothing from MBNA since my last post I today received a Default Notice.

 

They appear to have given adequate time for me to remedy the default so now I'm going to do some more research and see what the next action is from them.

[blueotter]

Sunshine i'm in excatly the same position as you with mbna,have a look at my thread. My interest also spiralled out of control with them ,at one stage they were offering me a 25k credit limit !!

No responsibility from them whatsoever,the monthly payment on that would have been £750 a month !! at 34% interest.

Nothing but a degenerate financial institution in my eyes.

 

I'm now waiting for their next step but since i put the account into dispute they've quietly racked up another 1.2k in interest and charges.I now have a cca from them but it doesn't look valid,be interested to see what happens with yours as we're both at the same stage of proceedings.

 

good luck mate and don't let em grind you down,not easy but this place is an oasis of calm and helps.

 

p.s note your egg problems,i'm going through similar with them as well,have you posted the info on here ?

[Sunshine54]

hi Blue

 

I've got a looooong thread on Egg and it's with the court and I have to have my defence in next week.

 

MBNA have offered every option possible but I haven't been in the position to take them up on any so got to fight this.

 

They've been adding over £300 per month interest plus 2 x £12 charges for late payment and default! it's a licence to print money!

good luck with your fight

S

[Hopster]

Me too. MBNA (with solicitors answering a county court claim form) and Egg - still with ARC / terevor Munn - just ! Keep in touch please.

[cadwallader]

Sunshine - is your MBNA default notice dated 7 September and does it demand repayment of the full outstanding balance rather than the arrears? If so, there are a number of recent threads on the Debt Collection Industry forum that will be of interest e.g.

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/219376-mbna-say-defaulted-me.html

 

Regards

 

C

[42man]

I'm adding this thread too as MBNA have been known to securitise their debts in Ireland !!! - http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/120057-cabot-test-case-2.html#post2384353

[Sunshine54]

evening

 

I've just checked the DN and it does indeed ask for the full amount. I'll read the threads but is it right for them to do that? doesn't that mean that I can't actually remedy the default and continue with the agreement?

 

thanks lots for the support and advice

S

[cadwallader]

sunshine - yes, seems to be the opinion. Also UKMail S also apparently counts as second class mail, so have to allow 4 working days for delivery. They seem to have sent out a batch of DNs this week so we probably need to let them start terminating without our making a fuss with them over it.

 

C

[Sunshine54]

hi again

 

interesting stuff! music to my ears actually

 

thanks lots

[Spamalot]

Hi Sunshine,

 

If they have asked for the full amount owed in the default notice as oppose to the arrears then it is tantamount to an unlawful termination of agreement..

 

Or has someone already said that...?

 

Sorry if I'm repeating what you already know.

 

Spam.

[Sunshine54]

hi Spam

 

you can repeat that as often as you like

 

that is exactly what they have done

 

thanks

S

[gezwee]

Theres a few more of us in this weeks bulk mailing from MBNA

 

Vint and Cerb have been very helpful and it may be worth subbing to a couple of other threads.

 

This one below makes interesting reading:

 

MBNA - say defaulted me but send a default notice???

 

Mines 26k so me thinks I'm gonna be shafted at some stage but .....tis only money - I'll still wake up in the morning (god willing), I'll still have a roof over my head, I'll still have a hot meal in my belly oh and ........a couple of bottles of Wolf Blass on offer at T**** at 3 quid a bottle

 

Gez

[Sunshine54]

hi Gez, well that's exactly the right attitude. I think MBNA will regret sending out those letters.

enjoy your Wolf Blass and I'm off to put the kettle on for a cuppa