Foreign Perspectives

MBNA Europe seem to be in the process of an across the board increase in their interest rates to 34.9% in an effort to force their credit card customer base into taking secured loans with their affiliate company loans.co.uk at equally extortionate rates from 10.3% to 17.5% (vs more like 7% for a normal mortgage).

If they’ve hit you with this increase you don’t need to simply accept it as a fact of life though. Approach them in the right way and you can get the rate decreased.

First off don’t get angry, get even. To do this you need to remain calm and polite with them on the phone.

The number to call is 0800 783 1116 which is the direct number for their “Rates and Fees” department.

Ask why your rate has been increased and point out (if applicable) that you’ve managed your account with them well and not missed any payment. Their usual stock answer is that it was due to an “account review”.

At this point tell them that you do not feel that this represents a fair treatment, that the rate is punitive and that you’d like to make a formal complaint. It’s important to use wording along those lines as that will highlight to them that you’ll proceed further which, of course, they’d prefer you not to as they’d almost certainly lose a case that got as far as the Ombudsman.

Usually, they’ll have to consult their manager at this point and, all being well, will come back and confirm that your rate has been revised substantially downwards. Ask them to confirm this in writing.

If that doesn’t work, inform them that you propose to make a formal complaint to the Financial Ombudsman Service and ask them how you should first take up the complaint formally with MBNA (as required by the Ombudsman). Also, ask them how you should make a Subject Access Request with them (to get all the information that they hold about you) as you’ll need that for the Ombudsman.

Hopefully, that will be enough to shake some sense into them re your interest rate. If not, just carry on as you said you would and take it up first through the MBNA complaints proceedures and then through the Financial Ombudsman Service.

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