MBNA Interest Increase

maxmo

Just got a letter today from MBNA increasing my interest from14.9% to a whopping 23.9% plus an additional 64 cent per €100 borrowed per month.
I am not in arrears and always pay a bit off every month.Are these guys on another planet?

chris85

maxmo wrote: »

Just got a letter today from MBNA increasing my interest from14.9% to a whopping 23.9% plus an additional 64 cent per €100 borrowed per month.
I am not in arrears and always pay a bit off every month.Are these guys on another planet?

You sound suprised. MBNA almost closed down Irish ops and were bought out. They need to be more profitable and thus interest rates get increased. Yes it is not good for the customer but they must remain profitable.

Yggr of Asgard

maxmo wrote: »

Just got a letter today from MBNA increasing my interest from14.9% to a whopping 23.9% plus an additional 64 cent per €100 borrowed per month.
I am not in arrears and always pay a bit off every month.Are these guys on another planet?

It is not plus an additional 64 cent per €100, that is the illustration of what the rate increase will mean to you.

Still 23.9% interest on a credit card is massive especially as this seams to hit everybody rather than just people who missed payments etc..

Pablo1802

That's interesting because I received similar letter today and MBNA is increasing my rates from 14.9% to 18.9% (only?) starting from Nov 2012.
Never had any problems with this card whatsoever, like missed payments etc.
Definitely MBNA goes the way to get rid of some not profitable customers.

testicle

My rate was 21.9 and I rang them and they reduced it to 17.9. I didn't get a letter increasing it though.

Captain Pugwash

maxmo wrote: »

Just got a letter today from MBNA increasing my interest from14.9% to a whopping 23.9% plus an additional 64 cent per €100 borrowed per month.
I am not in arrears and always pay a bit off every month.Are these guys on another planet?

In a word - Yes :cool:

Red About Town

Pablo1802 wrote: »

That's interesting because I received similar letter today and MBNA is increasing my rates from 14.9% to 18.9% (only?) starting from Nov 2012.
Never had any problems with this card whatsoever, like missed payments etc.
Definitely MBNA goes the way to get rid of some not profitable customers.

I don't think they are trying to get rid of non-profitable customers, more like make the customers who are making them money even more profitable.

It's pointless for MBNA (or Apollo as it's soon to be in Ireland) to have customers who pay their balance off each month. If they increase a typical full balance payers interest rates it makes no difference as they pay no interest as it is.

Marcusm

Red About Town wrote: »

It's pointless for MBNA (or Apollo as it's soon to be in Ireland) to have customers who pay their balance off each month.

Rubbish; they benefit from the interchange fees which amount to 2% to 4% of the amount spent on the card the bulk of which goes to the bank which issued the card (the balance going to Visa/MC and the bank operating the terminal in the retailer).

Customers who pay their bills in full each month and who rack up large credit card bills are very good customers - just ask AmEx which still oeprates mostly a charge card business (ie has to be paid in full each month).

Red About Town

That percentage range for intercharge fees is higher than what I thought it was. Where can this be confirmed?

Customers who have a rolling balance and pay interest on it every month, have payment protection insurance on their accounts, regularly pay late or go over their credit limit thus attracting fees and who takes money out via ATMs -they are MBNA's (any credit card providors) 'good' customers and make them their profits every year.

Yggr of Asgard

Red About Town wrote: »

That percentage range for intercharge fees is higher than what I thought it was. Where can this be confirmed?

Customers who have a rolling balance and pay interest on it every month, have payment protection insurance on their accounts, regularly pay late or go over their credit limit thus attracting fees and who takes money out via ATMs -they are MBNA's (any credit card providors) 'good' customers and make them their profits every year.

You can see all of the charges for visa here.

And mastercard has them here.

The times where those were as high as Marcusm says are long gone, Amex is the only one that still has very high fees.

j2606

On my latest statement I received an interest adjustment of €2500cr. No indication what so ever as to what this is for, any one any clues? Only thing I can think of is a claim I made for for interest protection which was refused.