- Report: #119652
Complaint Review: MBNA America - Wilmington Delaware
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Author Not Confirmed
Why?
MBNA America
PO Box 15026 Wilmington, 19850 Delaware, U.S.A.
Phone:
800-789-6701
Web:
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MBNA America Raised rates when payments were never late excellent payment history wouldn't change rates back account now delinquent Ripoff Wilmington Delaware
I had a well established long-time account with MBNA America. They had increased my credit on several occasions due to my excellent payment history, but when I purchased some appliances for my house and became close the limit, they decided to increase my interest rate without sending me notification, and without reason, and when I called them they said my account looked like risky. I NEVER had a late payment and I ALWAYS paid a lot more than my minimums! This was two years ago and I have since had to let the balance go and work with a financial company to pay the debt. Now MBNA is trying to put a judgement on my credit; go figure. How can they increase your limit, let you charge to that limit they gave you, and without notice or reason raise my rates soo high that I can't get anywhere on the balance because the entire payment goes toward interest??? Seems like bait and switch! Gee let me give you this great rate and this nice limit and when you get near your limit I will increase your interest rate and screw you over because I'm MBNA and I can giveth and taketh away! THAT IS NOT RIGHT!
Chastity
Rowlett, Texas
U.S.A.
Chastity
Rowlett, Texas
U.S.A.
1 Updates & Rebuttals
Former Employee
Somewhere,Maine,
U.S.A.
Legitmate organizations
#2UPDATE EX-employee responds
Fri, February 18, 2005
Unfortunately this is a classic case of not reading your credit card agreement. Proper resolution of this could still have been acheived however you chose to work with a "financial company to pay the debt". Your wording here is important. The financial company you are working with is not a legitimate debt consolidation organization. What companies like this one do is collect large upstart fees from clients in the name of promising lower rates for consumers. Unfortunately these companies did not take into account that credit card companies would catch wind of what was going on. Legitimate debt consolidation companies are NON PROFIT like CCCS. Where you pay them a particular amount plus a SMALL fee to cover ONLY administration fees for you. MBNA and other credit card companies have decided not to work with for profit organizations, most of which were started by former employees of the credit industry. What credit companies are doing now instead is referring people to places like CCCS and if they refuse in favor of these companies they file suit against the consumers. The logic is because these companies have promised rates they can not deliver, they skim a large portion of each monthly payment given to them for their own profit and try to take as much as 20-30 years to pay off the debt of consumers....not that they disclose any of this. Also, many of these companies are under investigation for fraudlent practices. CCCS is recommended because they don't promise rates they can't deliver and they charge only a small administration fee (generally around 10$ a month)and have consumers out of debt in 3-5 years depending on the debt load of the consumer. If the judgement has not actually been filed yet, and you have not alredy been subpeona'd, drop the company you are working with and run to the nearest CCCS office. Another decent company is CCOA (credit counselors of America). All credit companies work with them and they will give you an honest assesment of your situation. This will prevent a judgement since credit companies don't file for them against people working with these organizations.
