AvantCard increasing interest rate - can they do this?

mullingar

I got a letter from avant card/MBNA about their new interest rates.

Their rate will nearly double from the 9.9% I have been using for the last 10 years to 17.9%, can they force such a significant jump?

BuffyBot

Yes, they can. Once they've provided notice of the change you can accept, or close your account/move elsewhere.

ScouseMouse

I got that letter as well. They can do it. Its perfectly legal. They do point out if you do not accept the change, you can pay your card off and close the account :rolleyes:

shopaholic01

A lot of credit cards offer 0% interest for the first 6 months, might be worth switching your balance.

Compare here:

http://compare.consumerhelp.ie/CreditCard

brettmirl

Got the same letter.

AIB's Click Visa card seems to have the lowest APR at present at 13.6%

mullingar

Thankfully I only use the card on holidays and it's cleared immediately, but it's those who have it max'ed out and are financially struggling I feel sorry for as this increase could be an extra €50-100 extra a month !

TommiesTank

mullingar wrote: »

Thankfully I only use the card on holidays and it's cleared immediately, but it's those who have it max'ed out and are financially struggling I feel sorry for as this increase could be an extra €50-100 extra a month !

That is always a risk when using a credit card as a medium / long term form of debt.

hfallada

I love what Warren Buffet says about credit cards http://www.youtube.com/watch?v=WBDmlgcdLMM

Ciarrai76

I got a letter from them today, mine is changed from 14.9% to 18.9%. I really am trying so hard to pay off my card so I can close it. I have got it down a lot, but its hard and as soon as its cleared I am gone. So sick of AvantCard now!

anydroid

Also received a letter notifying me of a rate hike from 10.9 to 17.9% on a ten year old Platinum card, with c. 3k balance. Fortunately I can now clear this card and would have done so even in the absence of this hike.

However... I won't go quietly.

I'll ring tomorrow and threaten to clear the balance unless they hold my 10.9% rate. It'll be interesting to see if they want to keep their existing revenue from my account (say 27 x12 = 324) or prefer to let me walk. Looking back on my account history (if they bother) would indicate good revenue yield (too many years as a student!) and an A1 repayment history... surely the type of profile any CC provider would like to retain?

mullingar

I rang them earlier saying that I want to put on €5-6k on the card towards buying a car (complete BS;)) but on the 9.9% rate and that there was no way that I would put that money onto the card @ 17.9% and that I would be better off with a bank loan or a competitors cheaper/interest free option.

I went on to say that I was not happy with the rate near doubling and also asked why are they willing to lose my business. The "agent" said that there was no way she could change the rate so I asked it to be escalated.

A so called "Manager" called me back and I asked the same question and she also could do nothing about the rate. I then asked her then what is the point of me keeping open my account if you can do nothing for me as there are many cards still available to me at around 10%* as you can see that I have an excellent credit history with yourselves.....Silence.... I asked it to be escalated again, so lets see if a proper manager calls back.

*Chancing my arm

ScouseMouse

Keep us posted on any progress, but I personally think, Avantcard are now looking to recouperate the money they paid MBNA and now we see the result. More charges and fees.:(

anydroid

Had a very unusual call with Avant CS. Nice lady on the other end was quite despondent about Avant practices (as despondent as you can be when you're being recorded...) claiming the rate hike was being applied across the board, including staff cards, with no exceptions.

I cleared the balance and they made no attempt to keep my business.

Did someone say vulture fund? :rolleyes:

sk8board

I got a letter today that the rates are going up from 18.9 to 20.9% in the next few weeks.
Hilarious! At least they are being open about shafting their 'customers'

Davy

Payments At The Post Office Or By Postal Cheque

From 28 May 2014, all payments to your account made over the counter at the post office or via postal cheque will incur a processing fee of €0.83 and €1.15 respectively. These fees are being introduced to offset fees incurred by AvantCard and are a change to the terms and conditions governing your credit card account. No interest will be charged on these processing fees.

Credit Card Cheques

From 25 June 2014 we will no longer process payment of any credit card cheques previously issued to you. Cheques presented on or after 25 June 2014 will be returned with the reason 'Account Closed' or another indication that the cheque cannot be paid. Please note, this may result in additional fees for presenting an invalid cheque for payment.

What you need to do

Stop using credit card cheques before this date
Destroy any remaining cheques in your possession
If you have written credit card cheques which have not yet been cashed, please contact the payee and advise them to cash the cheque before the date above or pay them using alternative means

.

brettmirl

sk8board wrote: »

I got a letter today that the rates are going up from 18.9 to 20.9% in the next few weeks.
Hilarious! At least they are being open about shafting their 'customers'

Cripes!!!!

Are you on the Standard, Gold or Platinum card?

I tried to lodge a few quid from MBNA/Avant Card into a certain online betting shop this week and the card was blocked.

Have this account set up with the same card for a number of years.

Rang them up to be told that they are blocking most betting transactions on their cards now too.

They really are doing their best to downsize their customer base.

somesoldiers

I got a letter today saying they are raising rates from 14.9% to 22.9% a hike of 50% wtf?

Colostomy Bag

I received a letter today from AvantCard informing me that my rate is increasing from 10.9% to 18.9% in 2 months time. I was already very unhappy with the changeover from MBNA to AvantCard - the service is poor, everything about Avant Card seems to be crappy - I will now be changing credit card company as this is just a bridge too far.

somesoldiers

yes service is appaling, the old system had a nice email feature once you were logged in you could mail customer service and they would respond quite quickly. I wouldn't even bother calling them now, be waiting all day.

Unfortunately moving may not be an option for many with large balances. I recently applied for a new card and balance transfer to permanenttsb and was told i didn't earn enough! I earn a good wage i would have thought and we re not in negative equity. They couldn't consider my wifes earnings even though I would be getting a second card for her, she earns as much as me though they would only consider the household debts as all mine!
Felt like saying I would have a lot more disposable income if it wasn't for having to pay the debts of banks and the like.

Ciarrai76

somesoldiers wrote: »

yes service is appaling, the old system had a nice email feature once you were logged in you could mail customer service and they would respond quite quickly. I wouldn't even bother calling them now, be waiting all day.

Unfortunately moving may not be an option for many with large balances. I recently applied for a new card and balance transfer to permanenttsb and was told i didn't earn enough! I earn a good wage i would have thought and we re not in negative equity. They couldn't consider my wifes earnings even though I would be getting a second card for her, she earns as much as me though they would only consider the household debts as all mine!
Felt like saying I would have a lot more disposable income if it wasn't for having to pay the debts of banks and the like.

I tried to apply for other cards so I could leave AvantCard due to their appalling service & high rates. I was declined from everyone I tried. I then chanced topping up my existing loan for the amount I owed on the card and I was approved!! So I cancelled my card and am paying off the loan at a much lower rate than the card! Plus having no credit card is a lot better for me, its making me a lot more disciplined at my spending and controlling my debts!

somesoldiers

yeah will deffo be clearing this one way or another before the 2 months ultimatum. We both have a few bob in bonuses coming this month, so should cover most of what we need if the tax man leaves us any that is. Good riddance to avant

Greenmachine

Got a similar letter today. Except my rate is going from 18.9% to 24.9%. Only a few years ago it was 13.9%. Furious about this.

somesoldiers

is there anything we can do? I presume it's in the t&cs somewhere to allow them get away with this usury but this stinks like something a pay day loan crowd would do? Maybe I will ask Wonga or someone for a loan to clear the avant card- probably work out cheaper

Colostomy Bag

Some people appear to have received notification 6 months ago of interest increases - I wonder, could the timing of the increase for me have anything to do with me recently paying off the full 7.5k owed on my card for more than a year in one go? It would appear from others comments that my rate of 10.9% was pretty good, which really surprises me.

somesoldiers

Do they only want to have customers that clear down their balances every month and pay no interest! why would you alienate all your paying customer base with such an exorbitant hike, marks a pull out of Ireland by El Cid & co methinks!

kkontour

somesoldiers wrote: »

Do they only want to have customers that clear down their balances every month and pay no interest! why would you alienate all your paying customer base with such an exorbitant hike, marks a pull out of Ireland by El Cid & co methinks!

I would have thought that they make no money off these customers.

somesoldiers

kkontour wrote: »

I would have thought that they make no money off these customers.

Exactly, as opposed to their paying customer base

kkontour

somesoldiers wrote: »

Exactly, as opposed to their paying customer base

Ah,
after re reading your post I see that was your point!

K

restive

somesoldiers wrote: »

I got a letter today saying they are raising rates from 14.9% to 22.9% a hike of 50% wtf?

I got the same letter. I owe €9,400 euros on it.

Tilikum

Greenmachine wrote: »

Got a similar letter today. Except my rate is going from 18.9% to 24.9%. Only a few years ago it was 13.9%. Furious about this.

Mine has been 24.9% months & months. I rang up complaining and all she said was....there's higher interest rates than yours.

restive

Has anyone had any look switching to another Card?

Greenmachine

Tilikum wrote: »

Mine has been 24.9% months & months. I rang up complaining and all she said was....there's higher interest rates than yours.

Hate this shower they are even worse than the old crowd.

branners69

I am in the same boat, all rates increased to 24.9%!

I wonder if they are trying to encourage people to settle with them? I have heard of people settling with them by paying 40% of their outstanding amount!

somesoldiers

oh, please tell us. Is it just for those in over there heads?

Muahahaha

Just got that letter and am being hiked from 11 to 21%, I'm going to pay off the balance and move.

Does anyone know if you can pay a MBNA bill manually using Visa Debit ? By that I mean not via online banking transfer, by ringing up and giving the agent (or robot) your debit card number yourself ?

Davy

Muahahaha wrote: »

Just got that letter and am being hiked from 11 to 21%, I'm going to pay off the balance and move.

Does anyone know if you can pay a MBNA bill manually using Visa Debit ? By that I mean not via online banking transfer, by ringing up and giving the agent (or robot) your debit card number yourself ?

I would say they will take the card payment directly over the phone but prefer to do it online.

Just wondering why would you want to do it over the phone and not on the avantcard website directly?

restive

I applied to Tesco Credit Card and got €1,900 transferred at 0% for six months.

physioman

Muahahaha wrote: »

Just got that letter and am being hiked from 11 to 21%, I'm going to pay off the balance and move.

Does anyone know if you can pay a MBNA bill manually using Visa Debit ? By that I mean not via online banking transfer, by ringing up and giving the agent (or robot) your debit card number yourself ?

i think you can pay in the post office. i moved months ago. worst company to deal with.

Colostomy Bag

restive wrote: »

I applied to Tesco Credit Card and got €1,900 transferred at 0% for six months.

Sounds good - but what interest rate are they offering you after the initial 6 months?

somesoldiers

anyone know of any higher balances transfers available? need to off load 5K before the hike

Colostomy Bag

somesoldiers wrote: »

anyone know of any higher balances transfers available? need to off load 5K before the hike

The higher the balance the better in their eyes I would imagine - they make more money after the 6 months. I doubt you'll have any problem there - unless you can't get a credit rating that is - it will depend on your payment history I guess...

branners69

restive wrote: »

I applied to Tesco Credit Card and got €1,900 transferred at 0% for six months.

Remember €1,900 has be cleared off your card within the 6 months or you will pay all interest owed at whatever rate you have signed up for!

Colostomy Bag wrote: »

T...they make more money after the 6 months...

They will make money from day one (back dated) unless you clear the 5k in the 6 months!

mullingar

^^^^^^

Eh??? Sorry you are wrong there.

Interest free is interest free, but you still have a minimum monthly payment off the principal amount. Once the 6 months of the zero interest passes only then are you liable to start paying the due interest of that month and all future months. I've never heard of paying 6 months of back-interest in 1 month.

SPM1959

There is really no point complaining to customer service staff or mid managers; they will no control over your interest rates and unable to make any reductions.
Best thing to do is pay it off or move balance - easier said than done for a lot of people though.

Pablo1802

mullingar wrote: »

^^^^^^

Eh??? Sorry you are wrong there.

Interest free is interest free, but you still have a minimum monthly payment off the principal amount. Once the 6 months of the zero interest passes only then are you liable to start paying the due interest of that month and all future months. I've never heard of paying 6 months of back-interest in 1 month.

MBNA in Ireland used to have some 0% offer for 6 or 9 months under the above conditions

SPM1959

It's not back dated.

dobsdave

branners69 wrote: »

Remember €1,900 has be cleared off your card within the 6 months or you will pay all interest owed at whatever rate you have signed up for!



They will make money from day one (back dated) unless you clear the 5k in the 6 months!

Incorrect.
You will pay interest on what you owe after the 0% finishes.
As long as you keep minimum payments up.
Its not backdated.

branners69

mullingar wrote: »

^^^^^^

Eh??? Sorry you are wrong there.

Interest free is interest free, but you still have a minimum monthly payment off the principal amount. Once the 6 months of the zero interest passes only then are you liable to start paying the due interest of that month and all future months. I've never heard of paying 6 months of back-interest in 1 month.

dobsdave wrote: »

Incorrect.
You will pay interest on what you owe after the 0% finishes.
As long as you keep minimum payments up.
Its not backdated.

Apologies if this is not the way anymore, but they used to screw you after 6 months if you didnt manage to clear your transfer balance!

Sir Chops

mullingar wrote: »

I rang them earlier saying that I want to put on €5-6k on the card towards buying a car (complete BS;)) but on the 9.9% rate and that there was no way that I would put that money onto the card @ 17.9% and that I would be better off with a bank loan or a competitors cheaper/interest free option.

I went on to say that I was not happy with the rate near doubling and also asked why are they willing to lose my business. The "agent" said that there was no way she could change the rate so I asked it to be escalated.

A so called "Manager" called me back and I asked the same question and she also could do nothing about the rate. I then asked her then what is the point of me keeping open my account if you can do nothing for me as there are many cards still available to me at around 10%* as you can see that I have an excellent credit history with yourselves.....Silence.... I asked it to be escalated again, so lets see if a proper manager calls back.

*Chancing my arm

They're not idiots. Who buys are car on a credit card ???

somesoldiers

So just got refused by a second credit card crowd today, am looking to move a balance of 4.5K from Avant. It was 7.5K at the start of the year but I have cleared it down to this and plan on continuing to do so until zero. I just want to get away from Avant’s 10% rate hike preferably to a zero balance for 6 months. The problem seems to be that they are stacking my entire mortgage and loans against only my earnings, they will not include my wife’s earnings.
She earns the same as me ( truth be told it was her that put most the 7.5K there in the first place) and after two days of them telling me I needed utility bills with her name on, marriage cert where her maiden name was on them and two copies of her Id to add her as a second card holder on my account, they say I have been refused. Why bother going looking for all the ids when they only assess my income?

restive

somesoldiers wrote: »

So just got refused by a second credit card crowd today, am looking to move a balance of 4.5K from Avant. It was 7.5K at the start of the year but I have cleared it down to this and plan on continuing to do so until zero. I just want to get away from Avant’s 10% rate hike preferably to a zero balance for 6 months. The problem seems to be that they are stacking my entire mortgage and loans against only my earnings, they will not include my wife’s earnings.
She earns the same as me ( truth be told it was her that put most the 7.5K there in the first place) and after two days of them telling me I needed utility bills with her name on, marriage cert where her maiden name was on them and two copies of her Id to add her as a second card holder on my account, they say I have been refused. Why bother going looking for all the ids when they only assess my income?

Try Tesco. Apply for a credit limit of 2K only. and transfer 1.9K to it. See if you can get a 2K credit card from another credit card provider and transfer anther 2K to them. Do not try to transfer the full 4.5K to the one credit card provider.
I am in the same boat and have been successful with tesco and am now trying another crowd.