Welcome to Unfair Credit Card Rate Hikes Blog

I have opened up three credit card accounts via A&L, Abbey and Virgin websites three years back - they are all issued by mighty MBNA. I have made avail the Balance Transfers on these cards at 0% introductory rates or 5.9% interest rates over the last three years period.

I have been paying the cards more than minimum accounts for last three years.

Yesterday (04 Dec 2008) I called the company to find out the interest rates on these cards.

To my shock and horror, the customer services advisor has told me that the interest rates are at 34%!

I was not aware of changing the interest rates to this ridiculous level and to be fair I didn’t expect a company like MBNA will do this!

I have requested their advisors to consider reducing the interest rate as I didn't find any justification on thier side to increase the rate. They have refused to do so and also instructed that they can do what ever they wish to do as I am bound by a variable interest rate contract.

I have called them up again (once the shock has been absorbed) to seek the interest rate hike history.

Here are the details.

Abbey:
As of today: ---------- 29.9 (Balance Transfer and Purchases) & 34.9 (Cash Advances)
28 July 2008 ---------- 21.9 & 27.9
28 Jan 2008 ---------- 18.9 & 21.9
29 Jan 07 ---------- 9.9 and 9.9

Virgin:
As of today --------- 34.9 & 34.9
27 May 2008 --------- 27.9 & 27.9
26 Sept 2007 --------- 24.9 & 24.9 
29 March 2007 ------- 15.9 and 20.9

A&L:
As of Today ----------- 34.9 & 34.9
29 May 2008 --------- 27.9 &27.9
30 July 2007 --------- 16.9 and 22.9

As you can see there is no pattern while hiking the rates. They have increased according to their wish and I can’t see ANY justification on doing so.

My campain is two fold:

• Create an awareness about the unjustifiable, unethical, greedy interest rates
• Reclaiming our hard earned money from these companies

I wish you will join me extending your support and help!