Hi Just wondered if anybody has noticed that MBNA are making big changes to peoples minimum payments from April.
I know it might not effect alot of us already in IVA's but when you go on their site and re-calculate how much they will change im wondering if it could be the thing that puts a lot of people into even more financial trouble?
That will be a shock to a lot of people-when we first got into difficulties they were the only company who stopped adding interest and charges-maybe it has backfired on them and they now need to raise minimum payments.
full and final accepted January 2015
iva agreed; August 2010
iva would have completed; August 2017
extra year thank's to NRAM
MBNA are notorious for whacking up interest rates when customers hit financial difficulties. Mine went to well over 40% and I'm not alone on here. That was about 2k a year on a 5k debt. I believe the rules have changed now and if you don't agree to the new rate you can hand back your card and pay down the balance at your existing rate. I wish there had been an opt out in my day...I had a number of interest rate rises after I'd cut up my card!
That's right - they also have to credit check you before offering you an increase as well.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sheesh -- 40% !!! It crippled me when they put mine up to 26%. If the various cards hadn't increased interest charges over the years I might have been able to scrape through (would still have been living on beans though -- now I can afford the toast underneath ).
It's totally out of order that WE have to abide by the letter of the credit agreements as at the start of borrowing, but THEY can change them willy-nilly !!!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I am sure MBNA, wont be the only ones that increases the minimum payments percentage. Trouble as we all know now !! payment of the minium amount just about cover the interest charged and make very little impact to the whole balance
At least now though you have the chance to refuse that payment even it means that you lose the card.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
This was the one that tipped us over the edge. If they hadn't doubled the payment we were making we would never have needed to do the IVA in the first place.
MBNA - My rate went from 12.9 up to 34.9% on a 9k balance, they have a habit of withdrawing the facility and then hiking the rate. I struggled with this for over two years virtually all of my monthly payment was interest only a couple of pounds went to reduce the capital. If they had kept to the original interest rate I would have cleared the balance and perhaps wouldn't be here!
The other one I have a special place in my heart for is Natwest. I stopped using the card, paid the monthly minimum every month - by DD so they're in control - and then out of the blue I get a call telling me I have gone over my limit. Turns out the monthly min doesn't even cover the interest and every month my balance increased until it maxed out and then they started applying charges because I was over the limit. Honestly, it beggars belief!
I never paid any of my credit cards via DD - that way I was in control of what I did (or didn't!) pay them each month.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Just looked for an old credit card bill from this company. Our bills would have gone up over one hundred pounds between us. I can only see more people defaulting their bills and taking other routes to paying the debt off. Ultimately they are heading to the 3% or 5% minimum repayment. If you have a balance with them, the writing is on the wall.
To some extent all of the comments above mitigate the (still ocassional) feelings of guilt ... the CC companies have brought this on themselves, and, as a consequence, lenders like the AA are suffering the fall out too.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The lending policies they had in the past are probably leading them to these decisions now. MBNA were very easy with money in the past and now this is starting to give them a cold. However, i suppose they will say this covers their costs, but i feel it will only add to their problems and also the customers issues. They hounded me when i started the IVA process and don't feel any thing for them. I hope they get what they deserve.My other creditors i do sometimes feel guilty for letting them down, but equally now i have an arrangement in the IVA, i feel i have dealt with them.
MBNA is no different to people who are in IVA's, they have probably borrowed to much and now can't repay it back due to a change in the worlds finances. As i said earlier, this will not be the last rise they make and each will get more painful for the consumer.
Have to agree with everyone else on this one, MBNA were a pain to deal with, I did not use the card (which was originally Abbey way back when) for at least 2 years but the balance was going up rather than down and this was paying £300 + per month and they increased APR (even though I never missed a payment) up to 30+%, no sympathy for them but pity the others who have to suffer for their greed however.
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