MBNA Virgin Credit Card Interest rate

[Paule]

Re: MBNA Virgin Credit Card Interest rate

T
I'm not sure how the credit scoring works exactly

Have a read of this

Legal Beagles

[Redletter]

Re: MBNA Virgin Credit Card Interest rate

Thanks

[Redletter]

Re: MBNA Virgin Credit Card Interest rate

Just applied for a low rate card from Capital One (9.9%) and they refused me.
"Unfortunately we are unable to offer you the card you applied for...BLAH BLAH BLAH but you can have this one instead at 34.9%.................
Kinda defeats the object!!!

[Redletter]

Re: MBNA Virgin Credit Card Interest rate

I have just been told by the so called customer retention team at Virgin MBNA that no-one there has access to specific guidelines for customer account reviews and that the marketing team look at each individuals circumstances to decide upon which interest rates are applied to an account. Apparently I had 1 late payment in Sept 07 which took me over my credit limit, but I quickly made a debit card payment of 3 times the minimum payment but they would not verify that the interest rate hikes were punitive, just basically skipped around the issue saying that even they couldn't get hold of such information and they work there!!!???
They will not confirm that there is any selection process and advised me to pay "a lot more than my minimum payment in order to get the best rates"!!!

The question I have is this:
According to them I cannot complain to the FOS unless I have first made a written complaint to their customer advocates officer and have not been satisfied with their response.
Is this so or can I just write to them anyway???

[enaid]

Re: MBNA Virgin Credit Card Interest rate

The question I have is this:
According to them I cannot complain to the FOS unless I have first made a written complaint to their customer advocates officer and have not been satisfied with their response.
Is this so or can I just write to them anyway??? [/quote]


Yes it is so, the FOS will not deal with any complaints till you have a final response from the firm you are complaining about.

[natweststaffmember]

Re: MBNA Virgin Credit Card Interest rate

I just responded to you on CAG, pmsl. At least here I'm not moderated so I don't need approval of site team to post it. Mental marker being made, lol

[Redletter]

Re: MBNA Virgin Credit Card Interest rate

Thanks

[Redletter]

Re: MBNA Virgin Credit Card Interest rate

Well I've been knocked back for a further 2 credit cards at a more reasonable rate and I have no way of clearing the balance so Virgin MBNA have pretty much got me where they want me and they know it! I'm sure they take great pleasure in telling us to go elsewhere if we want to when they know we probably can't!

[Amethyst]

Re: MBNA Virgin Credit Card Interest rate

They are doing this all over, and its not just mbna. they started hiking interest rates on decent paying customers in the US back in 2006, and are still doing it.

If your ceiling is so close and you can't get a new card at a lower rate to switch to, which it sounds like you can't, have a think about sending them a CCA request for your original agreement - although as its Virgin was it an online application ? anyway worth an ask for the original agreement as if it turns out fauly you can use that as pressure to get them to lower the rate. in the meantime try a letter

Dear Sir,
I recently received a letter telling me the interest rate on my Virgin account was increasing to 34.5%. I would be grateful if you explained the reasons for this rise to me as the letter did not have this information in it.

I believe this rate rise to be punitive and selective and is detrimental to your most vulnerable customers.

I shall be reporting this to the Financial Ombudsman and Trading Standards for investigation, as I believe you as a company are penalising the people who can least afford it.

or something like that I'd add in all the bits from your first post on this thread too....

I have recently realised that my Virgin MBNA credit card is being charged at 34.9% APR, although on application it was 0% balance transfer for 15 months and typical APR 15.9%.
I have no defaults or CCJ's.
My Experian 'credit expert' rating is an 'excellent 940 out of 1000.
I was given a credit limit of £3000.
I have never been late with or missed a payment.
I have paid regularly by direct debit.

writing is the best option, make them reply in writing and commit it to paper, so you have something pretty to show the OFT (who are interested at the moment ) and it will at least get you a final response so you can go to ombudsman

[Redletter]

Re: MBNA Virgin Credit Card Interest rate

Thanks Amethyst most helpful

[Amethyst]

Re: MBNA Virgin Credit Card Interest rate

Go to FOS after complaining

The FOS Annual report (out today) shows they are settling with people who complain

But the rise in card complaints was also driven by more borrowers being aggrieved that their card company had suddenly increased their interest rate, in some cases by as much as 10 percentage points.
"As part of our investigation into these complaints, we issued questionnaires to the credit-card companies involved, to obtain information about - among other things - the actual assessments of risk that had been carried out in relation to these customers, and how the new rates had been calculated," the Ombudsman reported.

[scotsgirl]

Re: MBNA Virgin Credit Card Interest rate

Hi Redletter,

Im a newbie too, but I faced exactly the same dilema as you. I had a virgin and an mbna card, both on 0% interest, they continually increased the credit limits and I transferred balances from higher rate cards. Then when I had some money come to me, and just as I was coming near to the end of the 0% period I sent them £5500. over half of my balance.

What did they do? as soon as my 0% ended, approx 3 weeks later, they bumped me up to 34% interest. I called them to ask why this would be because I had always paid on time, by direct debit, and had made a large payment to help bring down the balance when the 15% interest would start.

i was told that because I paid such a large sum of money they (or their computers) assume that in order to make a payment of such a sum, in the current financial climate, that I must have borrowed it from somewhere else and therefore I became a risk! to cap that, and without any notice, they also halved my credit limit. So I didnt even have the option to use the credit I had left in my limit.

They do punish the good payers because they can. Be careful of them shutting you down completely. I would advise you to ask for the CCA.

And, ask for the CCA of every other card you have.

But be aware, now that MBNA have done this to you, you may as well forget about applying anywhere else. All you will achieve is having tags put on your file that you are getting knocked back for credit.

Its a complete disgrace the way the CC companies are treating people. what they dont realise is that we are their bread and butter, if they dont have us to pay the interest monthly then they wont survive long term.

A friend of mine went bankrupt, and he made a valid point to me. He said good people like you who pay religiously, never miss payments, and always try to manage your money well are getting punished because people like me F'd them off. and its true. I never thought that I would be getting this sort of treatment.

Just CCA them and start from there, this forum has some fantastic people who will hold your hand like they are holding mine. And remember this, you are definately not alone. MBNA have done it to many of us good people. Time to fight back.

Deep breath Redletter and fight back.

Scotsgirl
xx

[Redletter]

Re: MBNA Virgin Credit Card Interest rate

Hey thanks Scotsgirl it's good to know I have the support of people like yourself.
Can I just ask what is the purpose of the CCA request would it be as I am guessing to establish that maybe it has flaws in it and is therefore not enforceable?
Would I be therefore threatening to default and putting myself at risk of them 'shutting me down'?

At this point in time I do not intend to default if at all possible as I have taken some time to 'rebuild'my credit rating over previous years.
------------------------------- merged -------------------------------

Go to FOS after complaining

The FOS Annual report (out today) shows they are settling with people who complain

Thanks Amethyst I know Im rubbish but this is all new to me and despite my will to fight there is always that element of doubt and not knowing what one is up against.
I dont suppose there is a template letter I can work around? I'm worried about what to say and what not to say I want my letter to be based on fact and law and not just my opinions. Basically I dont want to look like a fool who doesn't know my rights!

Thanks again,

[Redletter]

Re: MBNA Virgin Credit Card Interest rate

What about this???

Dear MBNA,

I have recently realised that my Virgin MBNA credit card is being charged at the extortionate rate of 34.9% APR, although on application it was 0% balance transfer and typical APR 15.9%. This had been effectively disguised through only the monthly rates being shown on my statements.

I have regular access to my credit reference files and I have according to them an ‘excellent’ credit score of 940 points out of 1000.

I have no adverse credit history, defaults or County Court Judgements.

I was given a credit limit of £3000 on this card.

I have paid by direct debit regularly and never defaulted on a payment.

I am aware of other customers of yours who do not have such a high interest rate applied to their accounts and I therefore believe them to be selective, punitive and unfairly applied to those who can least afford it. It is my opinion that I have been ripped off with the promise of a credit card at a competitive rate and then snared and tied down to an interest rate which is far from ‘typical’. I am aware that the rate is variable, but I believed the reason for this was with regard to fluctuations in the base rate. How you can justify charging interest of almost seventy times the base rate I find totally bewildering!
You are supposed to be an established professional company yet you seem to operate with total disregard for the welfare of your customers. I would even go as far as to make the comparison with loan sharks!!!

I am informed that I was ONCE late with a payment in September 2007.
However, if you were to check your records, upon realising that an error had been made I immediately paid a sum far exceeding the minimum due payment.

I have contacted your call centre staff on a number of occasions to express my concerns and request a goodwill interest reduction but have been quite abruptly dismissed, even invited to transfer the balance elsewhere if I wasn’t happy! Quite an impressive customer retention policy!

I wonder if you were to advertise your credit cards as “Typical APR 34.9% once we have snared our customers”, you would have any customers!

I remind you that the consumer credit act 2006 introduced the assessment of unfair conditions and/or business practices to determine if an unfair relationship exists between creditor and debtor.

Part 8 of the Enterprise Act 2002 can then be enforced if an unfair relationship exists.
Some examples of improper business practices are:

Using false or misleading statements in order to induce consumers to enter into a contract

Hiding important details about credit deals in the small print


Requiring consumers to sign credit agreements that are not easily legible and are difficult to understand

Failing to comply with the requirements of the Act or the regulations on advertising and agreements

Failing to perform contractual obligations to consumers or to give any or adequate redress when in breach of duty to consumers


Misrepresenting the form, nature, purpose or long-term implications of loan agreements.
I reserve the right to report you to the Financial Ombudsman Service and the Office of Fair Trading.

CCA request enclosed.

Regards Redletter.
------------------------------- merged -------------------------------
I could add..

Please explain the process of selection to which I have been subjected.....

[Amethyst]

Re: MBNA Virgin Credit Card Interest rate

Cool I'd lose some !!!'s and the bit about loan sharks...lol - Yes I would definately add about them explaining WHY they have whacked up the rate.

I'd change end sentence to something like;

Should you been unable to offer a satisfactory resolution to the matter I shall be taking my complaint to the Financial Ombudsman and filing a report with the Office of Fair Trading.


Keep the CCA completely seperate too.

Otherwise great job