Jump to content


ever21

interet rate hike to 34.9%

style="text-align:center;"> Please note that this topic has not had any new posts for the last 3499 days.

If you are trying to post a different story then you should start your own new thread. Posting on this thread is likely to mean that you won't get the help and advice that you need.

If you are trying to post information which is relevant to the story in this thread then please flag it up to the site team and they will allow you to post.

Thank you

Recommended Posts

Hi,

Can anyone advise me on what i can do about my interest rate being increased to 34.9%. I have not defaulted or even missed a payment. I have been trying to pay this extortionate amount since dec08, but now i feel that it is getting too much for me now.

And to make matters worse, 2 of my other acounts have been increased to 34.9%.

I checked my credit file, and it comes up as poor, not due to any missed payments, but the amount of available and unused credit that i have.

So:

1) i tried to set up a 0% interest account but was refused due to my poor credit rate.

2)so tried a loan, to cover these cards, but was also refused.

I applied for the loan with a company i had previously used with no issues, and paid off in full at the end of the term.

 

I am trying with my bank to see if they will issue me a card/loan to cover the credit card debt,so i can reduce the interest to a more managable level, but not holding too much hope for this due to the other refusals.

I phoned the credit card company and asked them to reduce my rate, and they said no.

They offered me a loan with one of their companies, but i declined this offer, as i would expect they would benefit from the loan application, and my credit rate would deteriorate further.

My thoughts would be to:

a) write to them and ask them to reduce the interest rate.

b)From their response, write to financial ombudsman with my complaint.

 

Does anyone have any experience with my problem?

 

Thanks

Share this post


Link to post
Share on other sites

Hello ever21

 

You are not alone. Let me guess MBNA?? If it is get ready for the ride of your life, but don't worry help is always at hand and the people on here are a good lot and really do no what they are doing and talking about.

 

As for you credit rating, I wouldn't worry about that either as I bet 90% of the UK has their credit record shot to pieces. Notice how many times a day Experian are on the TV? Never used to be that way until the banks messed up. Anyway that's another story for another time.

 

How long have you had the card?

 

Have you sent them a CCA request?

 

If not start off by sending them this. Do not sign it and send a postal order for £1 and make sure you send it recorded delivery.

 

You can write to FOS, but they won't entertain you until you have tried to sort it with the card issuer, and writing to MBNA or whoever it is will get you nowhere whatsoever. Trust me on that one. Been there tried that and got the t-shirt and they really couldn't give a t*ss about you or your problems it's all about the money.

 

Account No: **** **** **** ****

 

Dear Sir/Madam

 

With reference to the above agreement, I would be grateful if you would send me a true copy of this credit agreement and a full breakdown of the account including any interest or charges applied. I understand that under the Consumer Credit Act 1974 [sections 77-79], I am entitled to receive a copy of any credit agreement and a statement of account on request. I enclose a payment of £1 which represents the fee payable under the Consumer Credit Act 1974.

 

I understand a copy of any credit agreement along with a statement of account should be supplied within 12 working days.

 

I understand that under the Consumer Credit Act 1974 creditors are unable to enforce an agreement if they fail to comply with the request for a copy of the agreement and statement of account under these sections of the Act.

 

I look forward to hearing from you.

 

 

Yours sincerely

 

 

 

 

Thanks

 

 

Scrapper Coco :cool:

Edited by Scrapper

"I just want to make people silky-smooth!"

 

Scrapper vs MBNA Partial Settlement Success. Saved £13,000 :lol:

Scrapper vs Barclays Bank Plc PPI Reclaim Success £5,500 :lol:

Scrapper vs Barclaycard Partial Settlement Success. Saved £6,000 :lol:

 

Scrapper vs Tesco's FOS upheld complaint. Possible court action to get default removed

 

Scrapper vs Egg (Barclaycard) Awaiting FOS

 

Scrapper vs Barclays Bank Plc Offered made & Refused. This means war :-x

Scrapper vs Barclaycard (Cabot) Waiting 4 years for CCA. Cabot advised irresolvable :lol:

 

Scrapper vs Intelligent Finance. Success

 

Scrapper vs Picture (Webb Resolutions) Success

 

 

Beginner's guide

 

Advice & opinions given by Scrapper are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability.

Share this post


Link to post
Share on other sites

Hi Scrapper,

Thanks for your reply.

I have had the account in question for a good few years now, pre-2004, as i recently found an old statement. it is a virgin card-mbna.

I had 3 accounts under the mbnas umbrella, but as one had no balance, they closed it, and left me with the other 2 at 34.9%, my balances are in total around 8k so not able to clear them in one hit!

I will get the letter typed and ready for monday and to get a postal order. I am totally fed up with it, but have been scraping money together for the last 12 months, but not really able to manage the extra now, as indeed it has a snowball effect!

cheers

Share this post


Link to post
Share on other sites

Hiya

 

We have all been there, but whatever you do dont worry about any of it. It may seem to get on top of you and you might want to throw the towel in, but never give up.

 

You have rights remember that.

 

I had the same issue when I lost my job, but the mistake I made was telling them even though I could still make the monthly payments. The next thing I know my interest rate had jumped from 15.9% - 34.9% just like yours and I had never missed a payment ever.

 

They are supposed to act in you best interest and not treat you unfairly. Taking that into account and with interest rates falling since 02 they aren't treating you fairly and deserve whats coming to them.

 

Anyway send off the first letter and await their responce. If you don;t here back within the time frame required post it on here and I will supply you with the next letter to send them.

 

I won't post it now as your start getting confused.

 

If you have any other questions just post them on here and either I or someone will be along to give you advice.

 

Remember chin up it isn't as bad as you may think.

 

Thanks

 

Scrapper Coco :cool:


"I just want to make people silky-smooth!"

 

Scrapper vs MBNA Partial Settlement Success. Saved £13,000 :lol:

Scrapper vs Barclays Bank Plc PPI Reclaim Success £5,500 :lol:

Scrapper vs Barclaycard Partial Settlement Success. Saved £6,000 :lol:

 

Scrapper vs Tesco's FOS upheld complaint. Possible court action to get default removed

 

Scrapper vs Egg (Barclaycard) Awaiting FOS

 

Scrapper vs Barclays Bank Plc Offered made & Refused. This means war :-x

Scrapper vs Barclaycard (Cabot) Waiting 4 years for CCA. Cabot advised irresolvable :lol:

 

Scrapper vs Intelligent Finance. Success

 

Scrapper vs Picture (Webb Resolutions) Success

 

 

Beginner's guide

 

Advice & opinions given by Scrapper are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability.

Share this post


Link to post
Share on other sites

What you have just said surprises me, as i was on maternity leave when this escalated! which i thought was a bit strange!

I helped my friend out last year with the help of CAG, so will now be looking after my own interests now!

Will get the letter done, and start with the CCA request.

Thanks

Share this post


Link to post
Share on other sites

This is what happened

 

No sooner had I put the phone down I had letter drop through the door advising me that due to my circumstances and something about risk assessment they where putting up my interest rate. MBNA 15.9% - 36.9 .

 

What sort of moron thinks that if someone is having financial problems it's a good idea to increase their interest rate by nearly 60%

 

And they wonder why people are trying everything in the laws power to tell them to go do one.

 

Someone at MBNA needs there head testing

 

Scrapper Coco :cool:


"I just want to make people silky-smooth!"

 

Scrapper vs MBNA Partial Settlement Success. Saved £13,000 :lol:

Scrapper vs Barclays Bank Plc PPI Reclaim Success £5,500 :lol:

Scrapper vs Barclaycard Partial Settlement Success. Saved £6,000 :lol:

 

Scrapper vs Tesco's FOS upheld complaint. Possible court action to get default removed

 

Scrapper vs Egg (Barclaycard) Awaiting FOS

 

Scrapper vs Barclays Bank Plc Offered made & Refused. This means war :-x

Scrapper vs Barclaycard (Cabot) Waiting 4 years for CCA. Cabot advised irresolvable :lol:

 

Scrapper vs Intelligent Finance. Success

 

Scrapper vs Picture (Webb Resolutions) Success

 

 

Beginner's guide

 

Advice & opinions given by Scrapper are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability.

Share this post


Link to post
Share on other sites

If you're not going to be using the cards again write to the sharks and tell them you do not accept the increase and it will be left at the current level.

 

You can only do this if you're not going to use the cards again.

 

Best of luck.

Share this post


Link to post
Share on other sites

just a thought...

I'm not sure but doesn't a "contract" have to have an agreed interest rate?

I have read somewhere that it becomes Null and Void if it's not fixed.

law as opposed to legal.

otherwise, they could put it up to 1000% if they so desired and the debt would/could never be paid off.

 

I can't remember where I read something ..I'll have a trawl and try find it...unless anyone on here knows something along those lines...

It's about each and ever one the terms and conditions being discussed and understood/agreed about by both parties to make a contract binding.

then one party can't take advantage of the other..

common sense really.


If my advice helped you please click my star

Share this post


Link to post
Share on other sites
just a thought...

I'm not sure but doesn't a "contract" have to have an agreed interest rate?

I have read somewhere that it becomes Null and Void if it's not fixed.

law as opposed to legal.

otherwise, they could put it up to 1000% if they so desired and the debt would/could never be paid off.

 

I can't remember where I read something ..I'll have a trawl and try find it...unless anyone on here knows something along those lines...

It's about each and ever one the terms and conditions being discussed and understood/agreed about by both parties to make a contract binding.

then one party can't take advantage of the other..

common sense really.

 

 

The 'contract' you refer to is the Credit Card Agreement (or CCA) this is why the posts above refer to writing to MBNA and requesting the CCA.

 

If the agreement is faulty or cant be found then the debt isnt 'null and void' but may well be 'enenforceable'.

 

Youll find that if the agreement does exist it will no doubt have a clause pointing out that the APR can be changed (this is why most CC companies raise the APR).

 

In reality (assuming a valid CCA) there is prob no legal reason to stop them raising the APR to 1000% !

 

Andy

Share this post


Link to post
Share on other sites

I have not used my credit card since May. They gave me the option of closing my account and maintaining my interest rate at 34.9% or carrying on at 35%? So kind of stuffed really.

I would like to see my original credit agreement, as i am sure that i would not have signed up to a card with typical apr of 34.9%.

Share this post


Link to post
Share on other sites
I have not used my credit card since May. They gave me the option of closing my account and maintaining my interest rate at 34.9% or carrying on at 35%? So kind of stuffed really.

I would like to see my original credit agreement, as i am sure that i would not have signed up to a card with typical apr of 34.9%.

 

Clearly you wouldnt of signed up to a card with 34.9APR BUT the CCA (assuming it arrives) will prob have a clause allowing them to raise it whenever they like.

 

I do believe new legislation or guidelines are on the way to stop card companies rasing it to stupid levels or at least they must offer youy a good explantion.

 

I had the same problem with Egg, this forced me to this site, start using CCA requests and also contacting Payplan, this resulted in my account interest being frozen and a token payment of £10 and then £1 being agreed, Egg have since sold it onto Apex, the end result is now that Egg are getting nothing off me !..if they had left the apr alone then none of this would of happened...idiots !! :)

 

Andy

Share this post


Link to post
Share on other sites

Hi,

I have one cca reply, and have attached it for advice. please can you let me know if this is all correct and as it should be.

Thanks

ever21

Edited by ever21
attachments too small

Share this post


Link to post
Share on other sites

cca to follow

Edited by ever21

Share this post


Link to post
Share on other sites

cca to follow

Edited by ever21

Share this post


Link to post
Share on other sites

cca to follow

Edited by ever21

Share this post


Link to post
Share on other sites

Any advice regards the cca would be great. Thanks

Share this post


Link to post
Share on other sites

Hi, i just received my cca in the post. It is my original application form for the credit card facility. is this what i need? any help would be good, thanks

Edited by ever21
not uploaded picture

Share this post


Link to post
Share on other sites

i have read the base section of the cca, and it says:

Before you sign the agreement you must read condition 11 in the terms & conditions provided.

It says its about recording personal information etc.

On the 2nd page it does not have a term 11, but a 1.1 which relates to if i decipher it properly, financial and related particulars-not clear at all!

Would this constitute a fully compliant CCa?

Thanks

ever21

Share this post


Link to post
Share on other sites

hi,

i have requested my cca from mbna/virgin as my interest rate has been increased to unmanageable levels.

could someone let me know if this is enforceable?

I have been reading the threads, but getting confused now.

thanks

page1virgin.jpg

virginbackpage.jpg

Share this post


Link to post
Share on other sites

you need to post this in the MBNA forum

your scan need a higher resolution.

 

dx


PLEASE DONT HIT QUOTE IF THE LAST POST IS THE ONE YOU ARE REPLYING TOO.

MAKES A THREAD TWICE AS LONG TO SCROLL THROUGH!

please do not post jpg images directly to a topic..USE PDF ....READ UPLOAD.

 

WE CAN'T GIVE ADVICE BY PM - IF YOU SEND ME A LINK TO YOUR THREAD - I WILL BE HAPPY TO OFFER HELP THERE

Single Premium PPI Q&A Read Here

Reclaim mis-sold PPI Read Here

Reclaim Bank Account, Loan & Credit Card Charges Read Here

The CAG Interest Tutorial Read Here

spreadsheets 

 

Share this post


Link to post
Share on other sites

thanks will do, scan is how i got it. it looks the same as my original.

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 Caggers

    No registered users viewing this page.


  • Have we helped you ...?


×
×
  • Create New...