Mbna Rate Jack Notice

[jacksorbetta]

Just got both of these in the mail today. LMAO. I'm sooooo opting out!(although the letter doesn't say I can).

http://farm4.static.flickr.com/3575/3837414271_fdf89c9562_s.jpg


http://farm4.static.flickr.com/3520/3837413923_4624dd4b78_s.jpg

Anyone else get a present from them?

linkies:(hopefully big enough for you to read)

http://i762.photobucket.com/albums/xx268/JacksorBetta/mbnastatement001.jpg
http://i762.photobucket.com/albums/xx268/JacksorBetta/mbnastatement.jpg

[java]

What do they say? hehe, kind of small.

[Evil Baby]

damn OP, you must have some good eye sight(site?)!

[YYZFA]

What do they say? hehe, kind of small.

MBNA must be going "green" by reducing the size of its paper!

Seriously, we're all interested as to what it says. . . .

[jacksorbetta]

Sorry, Flickr made the pics small.

Quick recap:

Effective Oct 14th, my rates are going from 19.99% (bt and cash advances) to 27.98

holy mother!

I have a BT on it right now @ 1.99%, which they claim is exempt, but I'm not taking the chance.

Funny part is, my statement, and the rate jack notice are both dated Aug 11th.

[YYZFA]

Sorry, Flickr made the pics small.

Quick recap:

Effective Oct 14th, my rates are going from 19.99% (bt and cash advances) to 27.98

holy mother!

I have a BT on it right now @ 1.99%, which they claim is exempt, but I'm not taking the chance.

Funny part is, my statement, and the rate jack notice are both dated Aug 11th.

Well it better be exempt! I don't have the room available to pay off my balance on my 1.99%.

I'm very certain that it is exempt though. It must be for the regular rate only.

[tkyoshi]

If you have a special offer, the same rate applies to whatever terms you are currently on.

The letter just refers to the regular rate as YYZFA mentioned.

In regards to opting out, if there is a clause basically it just involves them closing your account ;).

[angel_wing0]

Sorry, Flickr made the pics small.

Quick recap:

Effective Oct 14th, my rates are going from 19.99% (bt and cash advances) to 27.98

holy mother!

I have a BT on it right now @ 1.99%, which they claim is exempt, but I'm not taking the chance.

Funny part is, my statement, and the rate jack notice are both dated Aug 11th.

If your BT is 1.99% for life, it should not be affected.

[YYZFA]

I'll watch for this rate increase on my next statement. 27% is pretty high, even for a credit card. Wow, I'd hate to be carrying a non-promotional balance!

[YYC27]

Sorry, Flickr made the pics small.

Quick recap:

Effective Oct 14th, my rates are going from 19.99% (bt and cash advances) to 27.98

holy mother!

I have a BT on it right now @ 1.99%, which they claim is exempt, but I'm not taking the chance.

If they say the 1.99% is exempt, then the 1.99% is probably exempt. :P

Other than that .. I would never borrow money at 20%, so an increase to 28% wouldn't make much of a difference. ;)

Funny part is, my statement, and the rate jack notice are both dated Aug 11th.

I don't understand the significance to this. So they printed the notice on the same date they printed your statement? I'm only surprised they sent a separate notice, and didn't just include it in a "message" section on the statement.

btw ... if you take the "_s" out of the image URLs, you'll get something that's almost legible.

[jacksorbetta]

If your BT is 1.99% for life, it should not be affected.

Nope, the promo rate ends in November. I have an open offer from Amex to use for 2.99%. Can't be carrying a balance @27.98:lol:

[jacksorbetta]

:lol:If they say the 1.99% is exempt, then the 1.99% is probably exempt. :P

Other than that .. I would never borrow money at 20%, so an increase to 28% wouldn't make much of a difference. ;)



I don't understand the significance to this. So they printed the notice on the same date they printed your statement? I'm only surprised they sent a separate notice, and didn't just include it in a "message" section on the statement.

btw ... if you take the "_s" out of the image URLs, you'll get something that's almost legible.

The signifigance of it is that on the one hand I'm a valued customer who gets payment holidays almost every month, on the other, they're jacking me to some ungodly rate to thank me!

[Shawguy]

Which MBNA card do you have?

[YYZFA]

Nope, the promo rate ends in November. I have an open offer from Amex to use for 2.99%. Can't be carrying a balance @27.98:lol:

Agreed, however, you also can't be carrying a balance at the old rate of 19.99%!

It looks like MBNA is finally tightening up their lending practices. I'd suggest that if anyone wants to get the 1.99% for life, or the 0% for 15 months, that they do it soon. By reading the other threads on these topics, it seems like it's harder to get now, and may be impossible in the future.

[jacksorbetta]

Which MBNA card do you have?

Platinum Plus. I got an invite letter a couple months ago for the Smartcash, but didn't bother applying (may try for the new 0% offer though) cuz I didn't want to take another inquiry hit.

I wasn't planning on carrying the balance @ 19.99, but now I'm going to transfer it out sooner in spite.

[Shawguy]

Were you late on any payments (even by a day) or miss a payment?

[jacksorbetta]

Were you late on any payments (even by a day) or miss a payment?

NEVER. I have email setup for my stmt notification, and send a payment usually the same day. I wouldn't be surprised if others start reporting the same thing (rate jacks) as Mbna is notorious for it in the States... only matter of time before it gets bad here too.

[Z Tuned]

Does this/will this affect Smart Cash card holders?

[shannn]

Platinum Plus. I got an invite letter a couple months ago for the Smartcash, but didn't bother applying (may try for the new 0% offer though) cuz I didn't want to take another inquiry hit.

I wasn't planning on carrying the balance @ 19.99, but now I'm going to transfer it out sooner in spite.

No inquiry hits to convert PRP to SmartCash ;)
SmartCash has an interest rate of 13.99% as well (and a promo BT rate, IIRC 3.9% or something like that for the first few months)

[jacksorbetta]

No inquiry hits to convert PRP to SmartCash ;)
SmartCash has an interest rate of 13.99% as well (and a promo BT rate, IIRC 3.9% or something like that for the first few months)

I couldnt convert to the Smartcash to use the BT offer, as I already had a BT on the PP.

Would have been an inquiry for a NEW account (which I didn't want).

No idea if this will apply to the SC

[tng11]

Even though MBNA denied my request for a CLI a few months ago, for the last 4 months straight I've qualified for a payment holiday. With my card at 13.99% of course they want me to take them up on their "generous" offer. :D

[shawn99]

what exactly is a "payment holiday", you don't have to main the min balance for that month? first time I have seen a credit card offer this

[YYZFA]

what exactly is a "payment holiday", you don't have to main the min balance for that month? first time I have seen a credit card offer this

This is when the credit card issuer will allow you to not pay the minimum balance for that particular month. Your account does not go into default, as the minimum payment is waived, however, interest on the full amount continues to accumulate. I never take advantage of them, even at 1.99%.

[jacksorbetta]

This is when the credit card issuer will allow you to not pay the minimum balance for that particular month. Your account does not go into default, as the minimum payment is waived, however, interest on the full amount continues to accumulate. I never take advantage of them, even at 1.99%.

Me either, as you can see I had made my usual payment. This was the second BT offer I've used on this acct since I opened it 2 yrs ago... the 1st one I paid off when the promo ended. This current one is from my ongoing home reno expenses >:(. I'm gonna ride out the Amex offer, and hopefully sell my townhouse for a profit and pay it off.

Sucks to be me right now though. I checked out the Mbna website, and the PP card has the same rates as my current. I wonder if they will increase the basic card offering to the higher rates?

[YYZFA]

Me either, as you can see I had made my usual payment. This was the second BT offer I've used on this acct since I opened it 2 yrs ago... the 1st one I paid off when the promo ended. This current one is from my ongoing home reno expenses >:(. I'm gonna ride out the Amex offer, and hopefully sell my townhouse for a profit and pay it off.

Sucks to be me right now though. I checked out the Mbna website, and the PP card has the same rates as my current. I wonder if they will increase the basic card offering to the higher rates?

I get my bill next week. I'll post here whether the default rate is increased or not.

[markj]

hope they dont pull this on the smart cash customers...

[angel_wing0]

hope they dont pull this on the smart cash customers...

...as long as u dont carry a balance, there is no pt to worry.

[boyoflondon]

...as long as u dont carry a balance, there is no pt to worry.

Regardless ... the rate that OP is getting jacked to is just ridiculous. Its even worse then Citi's 19.9% for all accounts ...

[brunes]

Regardless ... the rate that OP is getting jacked to is just ridiculous. Its even worse then Citi's 19.9% for all accounts ...

The OP is one of the people who did a 1.99% or 0% balence transfer and has let it ride a long period of time, with no other charges. You can tell this just by the areas he has whited out.

MBNA is not making any money off of him, rather he costs them money. They don't want him as a customer. On top of this, since this promo was first offered the credit crunch has occured and all companies have re-examined all of their files, and probably determined he is a higher risk client.

They'll do whatever they can to get him to just pay his balance and leave.

FTR, I never saw any rate increase in my August statement.

[tkyoshi]

The OP is one of the people who did a 1.99% or 0% balence transfer and has let it ride a long period of time, with no other charges. You can tell this just by the areas he has whited out.

MBNA is not making any money off of him, rather he costs them money. They don't want him as a customer. On top of this, since this promo was first offered the credit crunch has occured and all companies have re-examined all of their files, and probably determined he is a higher risk client.

They'll do whatever they can to get him to just pay his balance and leave.

FTR, I never saw any rate increase in my August statement.

I agree with this theory, it's what US (well i guess MBNA is BOA ;)) issuers are doing down there too. They go one step further and say they will yank your BT rate if you do not use your card for regular purchases after 6 months (at your normal high interest rate).

If you have high Balances on other cards as well this could also cause a rate jack.

[YYZFA]

I agree with this theory, it's what US (well i guess MBNA is BOA ;)) issuers are doing down there too. They go one step further and say they will yank your BT rate if you do not use your card for regular purchases after 6 months (at your normal high interest rate).

If you have high Balances on other cards as well this could also cause a rate jack.

I've heard of this too. It seems very unethical to me. They offer these rates, knowing they'll lose money on them if the customers play the game properly. They bank on a large number of customers screwing up and missing payments or charging merchandise on their cards while doing a low rate BT. That seems fair enough to me, because if you don't read the fine print on something like this, then in my opinion, you deserve what you get.

However, to intentionally trap customers who understand and comply with all the terms to continue the low rate BT is really unethical. They take a chance that some customers will mess up and pay exorbitant rates and fees, and others won't. If they can't handle losing money on some of the deals that they themselves offered, then they shouldn't offer them.

[dealguy2]

Things change. These offers were given during good economic times and you can hardly fault a company for making sure they continue to remain profitable.

[inntents]

Things change. These offers were given during good economic times and you can hardly fault a company for making sure they continue to remain profitable.

I agree - things change. I took them up on their offer during good economic times, so they can hardly fault me for making sure that I, personally, continue to remain profitable by refusing to pay back that money at a higher interest rate.

Gee, I wonder how that would go over? :lol:

[brunes]

However, to intentionally trap customers who understand and comply with all the terms to continue the low rate BT is really unethical. They take a chance that some customers will mess up and pay exorbitant rates and fees, and others won't. If they can't handle losing money on some of the deals that they themselves offered, then they shouldn't offer them.
At the end of the day, they are a company. They are out to make money. People with low rate BT are costing them money, and making them nothing. hence, they want to be rid of them.

[alanbrenton]

Nope, the promo rate ends in November. I have an open offer from Amex to use for 2.99%. Can't be carrying a balance @27.98:lol:

Did you mean that your 1.99% for life balance offer will be ending in November? Or was this the 12/15 months for 0%?

This is when the credit card issuer will allow you to not pay the minimum balance for that particular month. Your account does not go into default, as the minimum payment is waived, however, interest on the full amount continues to accumulate. I never take advantage of them, even at 1.99%.

I've been offered this holiday for three consecutive billing statements but I'd rather pay the interest and not risk losing the 1.99% for life status.

[dealguy2]

I agree - things change. I took them up on their offer during good economic times, so they can hardly fault me for making sure that I, personally, continue to remain profitable by refusing to pay back that money at a higher interest rate.

Gee, I wonder how that would go over? :lol:

You are free to do that and they are free to sue you to collect the money you owe them. In fact this is exactly the reason why they have raised rates. There's many more people not paying back the money they borrow.

[Justine]

I have the mbna canadian geographic mastercard, and got a rate jack too, to 21.98%. I was shocked when I read it, I only signed up for this card because the AIR was so low, my visa already has 19.99% on it. Makes me want to pay down this credit card and never use it again. I have never seen an AIR so high.

I have been offered payment vacations often as well, pay my balance on time all the time. I have gone over limit a few times and was charged the $30 overdraft. I have a lot of debt on this credit card, and have currently no job, so awesome for me. :(

[jacksorbetta]

I have the mbna canadian geographic mastercard, and got a rate jack too, to 21.98%. I was shocked when I read it, I only signed up for this card because the AIR was so low, my visa already has 19.99% on it. Makes me want to pay down this credit card and never use it again. I have never seen an AIR so high.

I have been offered payment vacations often as well, pay my balance on time all the time. I have gone over limit a few times and was charged the $30 overdraft. I have a lot of debt on this credit card, and have currently no job, so awesome for me. :(

Sorry to hear that, hun. Do you have another card you can transfer the balance to? Or a Line of Credit?

I really enjoyed Mbna (except for the 5x daily telemarketing calls I'm inundated with), but my opinion has changed. They can kiss my cash good bye.

[Justine]

Sorry to hear that, hun. Do you have another card you can transfer the balance to? Or a Line of Credit?

I really enjoyed Mbna (except for the 5x daily telemarketing calls I'm inundated with), but my opinion has changed. They can kiss my cash good bye.

I had originally transfered visa balances to this card, since the balance transfer rate was low, and I think it still is.

Credit cards are the devil. If you can't afford to pay for it up front, just don't buy it. I have to live by this from now on. Carrying a balance for years and years is horrible. My credit score is probably sh*t, although I thought having credit was good, but credit card debt is not good credit. I don't know.

[mrbrint]

yeah man sorry to hear, thats a nasty rate. Im stuck in the soup myself, but all we can do is get outta this and never play again =)

[tamper]

No notice here, in fact two weeks ago they pre-approved and called me for a Smart Cash card effectively lowering my purchases interest rate from 17% to 14%. Raising AIR to 29% on a customer that carries a balance is pretty much telling them "You're fired".

Not sure it has to do with profits, I'm far from profitable to them. Over 6 years MBNA has made exactly 35$ interest from a 2% balance transfer that was paid down over a year. Not even enough to pay for all the phone calls and mailings they send me. They're probably looking at the paydown rate on my student debt and trying to get some of that action. (Credit rpt doesn't show them my student debt is cheaper than their 1.99 + 1% offer). Also RBC keeps increasing my Visa limit by the same amount I pay down on my student LoC with them so my ratio keeps improving.

I wonder what profiles they are trying to weed out. High Default risk must be one (high balances on more than one card). Maybe people whose total balances aren't decreasing over the past 6-12 months?

[jacksorbetta]

No notice here, in fact two weeks ago they pre-approved and called me for a Smart Cash card effectively lowering my purchases interest rate from 17% to 14%. Raising AIR to 29% on a customer that carries a balance is pretty much telling them "You're fired".

Not sure it has to do with profits, I'm far from profitable to them. Over 6 years MBNA has made exactly 35$ interest from a 2% balance transfer that was paid down over a year. Not even enough to pay for all the phone calls and mailings they send me. They're probably looking at the paydown rate on my student debt and trying to get some of that action. (Credit rpt doesn't show them my student debt is cheaper than their 1.99 + 1% offer). Also RBC keeps increasing my Visa limit by the same amount I pay down on my student LoC with them so my ratio keeps improving.

I wonder what profiles they are trying to weed out. High Default risk must be one (high balances on more than one card). Maybe people whose total balances aren't decreasing over the past 6-12 months?


Mbna is the ONLY balance I have. I could have used some investments of mine to pay for my home repairs/renos, but the tax implications don't make it worth it. I have some daily spender CC's that I rotate, but they get paid in full every month. I have no idea why they picked me to rate jack:confused:

Oh, and FTR, the notice came under seperate cover. It came in a plain envelope the same day as my statement, so I doubt you would notice it ON your statement if it happens to anyone else. In fact, it looked like one of those incessant mailers with BT cheques.

[evoviii]

Mbna is the ONLY balance I have. I could have used some investments of mine to pay for my home repairs/renos, but the tax implications don't make it worth it. I have some daily spender CC's that I rotate, but they get paid in full every month. I have no idea why they picked me to rate jack:confused:

Oh, and FTR, the notice came under seperate cover. It came in a plain envelope the same day as my statement, so I doubt you would notice it ON your statement if it happens to anyone else. In fact, it looked like one of those incessant mailers with BT cheques.

The notices are always separate, sometime masked as a change to terms of agreement or something of the sort.

I agree it's easy to miss because of the incessant BT cheques which are annoying because I have to shred just play it safe.

[YYZFA]

I get my bill next week. I'll post here whether the default rate is increased or not.

I received the same letter today as the OP. 27.98% is really high. . .

I know someone who is paying interest on about $15,000 with interest rates that high. She just pays the minimum, and sometimes not even that. She'll never be out of debt.

[angel_wing0]

I received the same letter today as the OP. 27.98% is really high. . .

Wow, now that's rape high.

[Thalo]

Wow, now that's rape high.

Sad thing is that it's the bad economic times, causing people to default, that is requiring the credit card companies to charge a higher rate of interest. Unfortunately the higher rate of interest then causes even more people to default. It's kind of like 3rd world country debt.

[jacksorbetta]

I received the same letter today as the OP. 27.98% is really high. . .

I know someone who is paying interest on about $15,000 with interest rates that high. She just pays the minimum, and sometimes not even that. She'll never be out of debt.

Sorry to hear that they got you too.:(

I'm sure we're won't be the only ones on RFD though. More will trickle in here soon.

[YYZFA]

Sorry to hear that they got you too.:(

I'm sure we're won't be the only ones on RFD though. More will trickle in here soon.

I believe that everyone who has the regular/Platinum cards will receive this notice. Mine goes into effect on October 29. I'm not worried, as the only balance I ever carry is my 1.99% for life BT. Nonetheless, as soon as I pay off my LOC (which should happen by the end of October), I'll work on paying off the balance of my BT, as I don't ever want to get caught with my pants down and a rate increase on my BT.

You never know. For MBNA to increase their rates to such a high level, it might be a sign that they are hurting. I certainly don't want to take a risk that they could cancel the BT rate in the future, and have me paying 28% interest.

[emcq29]

does it effect the balance transfer already gone through ? my 0% ends in december.does this mean they will jack up the intrest rate now or in december on the balance ?