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MBNA - Interest Rate Hikes

MBNA America • Interest rate increases • Payoff agreements • Sales Practices • Credit protection plan • Credit line • Luring students • Pay-by-phone --- News • Bank of America Completes MBNA Buyout • Small Wonder MBNA Found Itself the Prey • Bank of America Buys MBNA • MBNA Profits Plunge • MBNA Turns Up the Heat • Supreme Court OKs MBNA's Charging Interest on Fees

Ann of Shelby Twp, MI November 10, 2006

In Sept 2005 I had an existing installment loan in the amount of 15,000 at 6.99%.  Sept. 2006 the interest rate increased to 8.74%, which was tolerable.  But opening my statement for November I noticed the interest rate was now 14.98%, I couldn't believe it.

I called the 1-800# to inquire about this change which had pretty much doubled.  I was told that there was a notice in my September statement that my interest would increase if I didn't notify them in writing within 30 days. If I had written them, it would have remained the same. According to the supervisor it is called a "just say no policy". Obviously if I was aware of this I would have just said NO!

Robert of Huntington Beach, CA November 7, 2006

I have never missed a single credit card payment. I called MBNA today and they said my interest rate is 28.49%. My response was: EXCUSE ME?!? They decided to raise my interest rate equivalent to the one of a typical loan shark despite the fact that my credit scores are in the 700's, and the fact that I have never missed a single payment EVER. When these balances are paid off, I will close all of my MBNA/Bank of America accounts. This is nothing more than consumer gouging which should be illegal.

Jacque of Elk Grove, CA October 19, 2006

I have a visa with MBNA/BofA.  They have increased my APR to 27%, because they said my credit score has lowered!

My credit score has fluctuated throughout the years and this has never happened before. I called the company and they confirmed that I haven't missed any payments since I've had the account. I've been a loyal customer and it feels like these companies are trying to force me into bankruptcy.

Phillip of Hammond, IN October 14, 2006

I just googled my interest rate (29.24%) and imagine my surprise when the first site listed was a webpage complaining about MBNA. What started as a low interest card is all of a sudden 29.24%.

This was a special offered card with low interest rates and I just found out they jacked it up without notification. Now only about 30.00 of a 175-190 payment goes to principle.

I thought that rates this high were illegal. Talk about gouging.  The only way I can pay this is to work 70-80hrs a week. Bankruptcy looks good and would serve them right, but I have my integrity.

Diana of Reynoldsburg, OH September 11, 2006

I have had this credit card since 2004 with never a late payment.  I did not receive a statement in June 06, causing me to miss one payment.  My July 06 statment had a 39 late fee so I contacted MBNA customer service, explained the situation and they removed the charge.

I then made an electronic payment through my bank and for whatever reason that payment was not credited to my account until 8/16, one day after my due date of 8/15. Another late fee was placed on my account and my interest rate was increased from 5.9% to 24.99%.  I contacted MBNA customer service to cancel the account. The csr transferred me to a rate specialist who said she would change the rate back to 5.9% but that I would still have to pay the late fee and finance charges of 22.20 (on a balance of less than 900). I told her that was unacceptable and that I would be closing the account.

I asked her about the cash value of the 12,187 World Points I had accrued. She told me that I lost those when I closed the account but that they would have been worth about 80. I responded that I hadn't finished my account inquiry so it should not be closed yet and I wanted to redeem the points for cash. Basically she told me that she closed the account as we spoke and that I lost the points due to that action.

I asked her to re-open the account, redeem the points and then close it. She refused saying the company would lose too much money doing that. At that point I asked to speak with a supervisor, she refused to transfer me saying supervisors were not available. 

Laurie of Akron, OH September 5, 2006

MBNA just raised my fixed 10.99 interest to a whooping 24.74 variable. When I contacted MBNA I was given to a credit supervisor who said my credit debt was too high and I was considered a credit risk. I have never been late on any payments on any of my acounts and always make over the minimum payment. I also received the story that they notified me of the proposed increase which I never received. I always pay the bill online - you would think that they would also post the notices with your online statement since they encourage you to make your payments online.

If consumers are such a bad credit risk in MBNA's eyes why do they continually raise your credit limit - offer you a lower fixed rate to transfer balances from other cards (which I was told was a rate that would never change) and then pull this rate change when your balance is higher because you believed their stories. They dangle the bait until they have you trapped and then they just slit your throat. I have been a customer of MBNA for over 5 years and have an excellent payment record with them (and my other creditors)however that's just not good enough in their corporate (rape the consumer) eyes. MBNA IS A CONSUMERS WORST NIGHTMARE.

Sri of Sachse, TX August 15, 2006

I have been a customer of MBNA for the last 10 years. I always paid more than the minimum amount required. I had some balance left on my credit card and without any notice they increased my interest rate to 24.99%.

I think this company has become worst than the loan sharks.  I will pay off the balances but will be very very careful when doing business next time or doing any business with them at all.

Lisa of Seven Valleys, PA August 8, 2006

Back in May of 2006, I leaned heavily on my MBNA credit card to help get me through a tight financial spot. I used it to pay my mortgage, car payment, and some utilities. Before long I got a call from them saying they were going to have to knock back my credit limit. Unfortunately for me, they chose an amount that was below the amount that had already been charged to the card.

It didn't occur to me at the time, as I'm not a big credit card user, that there would be an overlimit fee charged to my account for each billing cycle that the amount remained above the credit limit. These banks are extortionists!!!! I will soon pay off the balance on the MBNA card, and plan never again to use their product, or any other credit card issued by loan-shark organizations. My blood boils each time I recall this incident.

Gerald of Grants Pass, OR August 3, 2006

I have had MBNA credit card for several years at 8.99% rate. They raised my rate to 18.99% and claim that they mailed me info. with opportuity to opt out. I do not remember receiving notice. What's really upsetting is that they applied increase to existing balnce, not just new charges. I phoned and they refused to do anything.

My current balance is 12,590. A rate jump from 8.99 to 18.99% is significant on that balance.

Michael of Sea Isle City, NJ June 13, 2006

Twelve months ago I entired into ZERO % interest rate contract with MBNA.The 13th. month the rates want to 7.90.( no problem).The 14th month rates want to 16.49%.MBNA responed to my omplaint letter.Even though I was not late nor did I miss a payment because the balance was not being paid down quick enough they felt I was a higher credit risk.Month 15TH. After I made a payment in the 14 month using my prior interest rate of 7.90%.MBNA RAISED MY RATE AGAIN TO 16.74% WITH 39.00 LATE CHARGE.So at one time I was paying a monthly payment of 483.00 now 958.90..

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