Complaint Review: SunTrust - Bankcard Services - MBNA America

I have a Master Card credit card thru SunTrust, this account has been active since 1988.

On 30 March 2006 I received my monthly credit card statement and noticed that the interest rate had almost doubled, from a 12.97% APR to the present 25.49% APR.

Thinking that this was an egregious mistake, I contacted Bankcard Services at the toll free number 1-800-223-7046, I first talked to a account representative, and I informed her of the problem, she pulled up my account information on her monitor and promptly informed me without further queries that she would transfer me to the Account VP.

An account VP answered the phone and asked for my account information, and asked if she could be of any assistance. I informed her that my credit card APR had doubled and wondered why this would happen since no payments had been late or missed since 1988.

She asked me if I had made a late payment or missed any payments to any other companies, I quickly responded by saying NO. She then proceeded to ask me what my annual income was, and how much I was paying in rent or house payment. I informed her of my financial condition at the present. She said that my total debt to income ratio was too high, and said that I did not make enough money, and that the bank would incur a bigger risk that I could not make the payments.

Therefore they would raise my payments from the previous month $246.00 at an APR of 12.97% equaling to a $124.02 monthly finance charge to this month's statement of $389.00 at a 25.49% APR bringing up the finance charge up to $268.23 a month.

It's obvious to me that this is a well crafted profit scheme; since the finance charges increased by $120.40 per month by only raised the principal payment by $1.21. My reward for making all my payments on time and in full has come to this; I think this is an extremely unjust business practice and should be made illegal.

Now that the #1 lending institution in the USA has literally put the screws to me, all I have to do now is wait a very short while for my myopic government to slam the hammer on the head by increasing the principal payments. Thank you congress for looking out for me! My payments will probably increase to $700 to $800 a month on this credit card alone. Talk about adding insult to injury!

Let's not forget that this honest, and well intending conglomerate was a major leader in the Bankruptcy Reform Laws and a major contributor to the Bush campaign. Money does talk! And citizens walk.

John
Newport News, Virginia
U.S.A.