- Report: #1034397
Complaint Review: MBNA America - Wilmington Delaware
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Author Not Confirmed
Why?
MBNA America
P.O. Box 15026 Wilmington, 19850-5026 Delaware, U.S.A.
Phone:
1-800-789-6685
Web:
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MBNA America springs rate trap rip off
First let me say that I have excellent credit and am constantly being offered low interest credit cards. In October of 2000 I received a mailing from MBNA offering a Platinum card with a 9.9% fixed rate. I accepted it and activated the card. In November 2000 I got a call from a MBNA representive that offered to consolidate my other credit card debts and waive all fees. I thought this a good deal since most companies charge a 2-5% fee for cash advances and the rate is usually higher. I was assured the rate would stay at 9.9 fixed for purchases or cash advances. And since the rate on my other cards was between 11 and 15% I agreed. I transferred 3 of my balances, about $8,000.
I didn't use the card for anything else since it was close to the limit. I have made all the payments on time and at double the required payment. So I was shocked when I got my June 2001 statement. The interest had gone to 19.9%! Believing this must be a mistake I called the company. After being transferred three times and staying on hold no less than 10 minutes each time I was supposedly transferred to someone who would help me. This person asked me a lot of questions. Some were routine - income?, how long on job?, own home?, etc. Then she informed me that I had a lot of credit card debt (what does she consider alot? None of my cards are at the limit) and ask what I had used it for. I was a little taken back, I consider my purchases my personal business, and asked what this had to do with them changing the rate? Then she asked me if I could pay off all of my debt with 90 days notice? (Is this a requirement for using credit cards?) I replied that I probably could not without taking the money from my saving. She offered to make the rate 17.9! I ask what happened to the 9.9 fixed that I agreed to and she flatly denied that I had ever been given that rate. I offered my past statements as proof but she would not acknowledge that. Further more she said that I had been sent a notice in March informing me that I had 90 days to pay my balance in full or accept this new rate of 19.9%! I never saw any such notice. (fine print slipped in with the advertisements?).
Needless to say I was outraged! I am paying these suckers off immediately! Is it really legal for them to call the balance or change the rate at any time? Looks like they suckered me in and then sprang the trap when they thought I couldn't get out. Makes me wonder how many people they get with this one. Lucky for me I have the cash reserves to pay them off.
The average family lives on a strict budget and does not have the cash - hence the use of the credit card to begin with - and will end up paying through the nose. DOUBLE the RATE, DOUBLE the MONTHLY PAYMENT, then LATE FEES, and THEN OVER THE LIMIT FEES. Then the rate goes even higher! SEE THE TRAP!! They could never get out!! This is outrageous and something should be done to stop this kind of unethical practice.
I didn't use the card for anything else since it was close to the limit. I have made all the payments on time and at double the required payment. So I was shocked when I got my June 2001 statement. The interest had gone to 19.9%! Believing this must be a mistake I called the company. After being transferred three times and staying on hold no less than 10 minutes each time I was supposedly transferred to someone who would help me. This person asked me a lot of questions. Some were routine - income?, how long on job?, own home?, etc. Then she informed me that I had a lot of credit card debt (what does she consider alot? None of my cards are at the limit) and ask what I had used it for. I was a little taken back, I consider my purchases my personal business, and asked what this had to do with them changing the rate? Then she asked me if I could pay off all of my debt with 90 days notice? (Is this a requirement for using credit cards?) I replied that I probably could not without taking the money from my saving. She offered to make the rate 17.9! I ask what happened to the 9.9 fixed that I agreed to and she flatly denied that I had ever been given that rate. I offered my past statements as proof but she would not acknowledge that. Further more she said that I had been sent a notice in March informing me that I had 90 days to pay my balance in full or accept this new rate of 19.9%! I never saw any such notice. (fine print slipped in with the advertisements?).
Needless to say I was outraged! I am paying these suckers off immediately! Is it really legal for them to call the balance or change the rate at any time? Looks like they suckered me in and then sprang the trap when they thought I couldn't get out. Makes me wonder how many people they get with this one. Lucky for me I have the cash reserves to pay them off.
The average family lives on a strict budget and does not have the cash - hence the use of the credit card to begin with - and will end up paying through the nose. DOUBLE the RATE, DOUBLE the MONTHLY PAYMENT, then LATE FEES, and THEN OVER THE LIMIT FEES. Then the rate goes even higher! SEE THE TRAP!! They could never get out!! This is outrageous and something should be done to stop this kind of unethical practice.
