MBNA / CHANGE IN PAYMENTS

[31101932]

When I first had a credit card in 1980 the minimum repayment was £5 or 5% of the statement balance.

In the 1990s this became 3%, 2.5% and then 2% which meant that I could increase my balance with the same minimum payment.

Together with continually increasing credit limits I was able to dig a very deep hole.

If the card companies had kept the minimum payment at 5% and not increased my credit limit to stupid levels (a total of over £100,000 when I entered my IVA) I would have had less of a problem.

[Broke of London]

The changes to the lending code are long overdue. I am all taking responsibility for my own borrowing but some companies - MBNA- actually preyed on people who were struggling. In my own experience, they sent me CC cheques when my payment history was erratic (that's the generous way of describing it), they doubled my limit when i told them I cut up my card and asked to close my account after a consolidation loan (I cut up the first new card they sent but six months later they were calling to ask why I wasn't using my card and sent a second one, convincing me I should have it for an emergency). That's not an ethical way to behave, but I should have been stronger!

[salkitten15]

It's difficult to be strong when they are offering it on a plate, I think that's part of our culture also, we all want more....

My experience with the Marks and Spencer credit card was very similar, every 6 months or so they would up my credit limit by £200-300 and by that time I was in debt but burying my head in the sand

It's only when things came to a head with my financial situation they reduced my credit limit and put up their interest charges.....of course I had no way of paying it!

They do put the temptation there but at the end of the day they are responsible, the term "responsible lender" comes to mind, but how is the average joe bloggs taking home less than £1000 a month able to pay that back???

Sorry ranting there....I don't want people to think I wasnt responsible with my money, makes my blood boil actually!!!!

Did anybody watch Rip-off Britian tonight? Again banks and credit card companys making money off innocent people....

[Broke of London]

I didn't see it - but will have a look on BBC iPlayer tomorrow..I love a good bank bashing! I worked for one and saw how ruthlessly they chase their targets. To all those people who think they had arbitrary bank charges...you probably did. If a branch came up short on income targets at the end of the month they'd add charges to make up the shortfall!! This only stopped when the OFT thing started causing problems.

[embarassed]

The new changes of payment by mbna means we have to find another £200 pounds a month!!! We cannot find this money can I ask you guys for advice?

[embarassed]

how is it legal they only have given me 20 days notice?

[size5]

As an aside, I didn't see Rip Off Britain tonight, but I did see it the other week where a completely imbalanced and unfair view of DMP companies was given by a panel of 3 presenters, 1 of whom was very happy to receive a very large cheque in the past to advertise on national TV the services of such a company.

Very interesting that she didn't disclose that.....

Regards.

[Broke of London]

Hi - we're all financially embarassed around here LOL!!

You can return the card and pay off the balance at the current interest rate. If yor debt problems are bigger than this, I would suggest speaking to a professional about possible debt solutions. THere is a list and customer reviews at www.iva.com and of course, the experts section on this site has a number of highly respected firms.

Keep posting and let us know how you get on x

[embarassed]

We were keeping our heads above water and meeting our committments until this announcement by mbna. If there is anyone who can help me down the IVA route I would be grateful for you advice. I'm sick of trying to be honest!!

[embarassed]

So if I return the card they have to accept payments at the old rates? This would be a huge help!

[Broke of London]

Do speak to a professional, because unless you are paying off your debts rather than making minimum payments and then using credit again throughout the month you are just treading water.

Speak to a couple of professionals, do a bit of a google search and read the info on this site and then we can all try and answer any questions you have. In fact, make a list!! We love questions around here!!! xx

[kallis3]

As far as I am aware, if they up the interest rate then you can refuse to pay it. You have to send back your card though and then continue to make your payments at the old interest rates.

[ginger3232]

You need to write them a letter - saying you are refusing to accept recent rate changes(this needs to be done quickly) - this situation has been outlined under recent banking codes. Cut up your credit card. No further automatic debits etc.

[kallis3]

Good advice there - do it immediately and I'd send the letter recorded delivery so you know they've received it.

[ginger3232]

Embarassed

See the article below - note it seems to indicate a period of 60 days (not 20 as you have been told).


http://www.bbc.co.uk/news/business-12074630