Ramping up interest rates - legal???

[poppynurse]

MBNA have ramped up my interest rate from 14.9% to 29.9% (they wanted 34.9% but I argued) on £9.5k - this is crucifying me.

 

I know the T&Cs (which I am waiting for an enforceable copy of) generally say they can increase rates but this is getting ridiculous - I have never been so much as 5 minutes late with a payment.

 

Are they legally allowed to keep ramping it up?

 

And are they breaching something as they never show the APR on the statements/online banking - it just shows the monthly rate.

 

What can I do?

[Viscount Stair]

OFT say that this could be a breach of the Unfair Terms Regs and it is also potentially an Unfair Relationship under sections 140A-140C.

 

No certainties but room for argument, if you ask me.

[poppynurse]

So how do I go about disputing this?

[Viscount Stair]

I did hope someone with more practical experience than I have might have picked this one up but here goes ...

 

I'm assuming from what you have said that you have already made a s78 request and that MBNA are in default for that request.

 

If, like me, you have already played the can't enforce until you comply card, then what I am doing is simply reserving my rights in all other respects, which should allow me to fall back on UTCCR and ss140A-140C if ever need be.

 

You could spell out that you regard the increase in interest rate as being contrary to the Unfair Terms in Consumer Contracts Regulations 1999 and refer to there being OFT guidance on the subject (I can't give you chapter and verse off the top of my head but I'll try and dig it out later). You could also reserve the right to make an application to the court in any subsequent proceedings to have the agreement re-opened under sections 140A - 140C on the basis that they are seeking to exploit an unfair relationship by increasing the interest rate in your circumstances of which you have made them aware and also by seeking to do so at a time when they are in default under section 78. You could also refer to any other misdeeds they have committed (eg harassment, misleading correspondence, etc).

 

Can anyone else add anything?

[Vulture_Bank]

MBNA have ramped up my interest rate from 14.9% to 29.9% (they wanted 34.9% but I argued) on £9.5k - this is crucifying me.

 

I know the T&Cs (which I am waiting for an enforceable copy of) generally say they can increase rates but this is getting ridiculous - I have never been so much as 5 minutes late with a payment.

 

Are they legally allowed to keep ramping it up?

 

And are they breaching something as they never show the APR on the statements/online banking - it just shows the monthly rate.

 

What can I do?

 

in simple terms when foreign companies such as MBNA i(capital one ??) increase the interest rate to these "extortionate" levels when people fall on hard times as many people in authority MP's press etc need to be made aware of what is going on ..........

 

if they were to default you (presuming they came up with a valid agreement)

 

does anyone think applying for a time order would work ??

 

http://www.insolvencyhelpline.co.uk/debt_factsheets/time_orders.php

[poppynurse]

Just an update - I complained to everyone I could think of, very little response so I submitted a complaint to the FOS a few months back. Yesterday I got a letter from MBNA saying they are reducing my rate to 20.9% - it''s a start I suppose.

 

The FOS found in MBNAs favour on my OHs complaint against MBNA ramping interest rates - but MBNA refunded a significant sum as a goodwil gesture....

 

Get those complaints in to the FOS (they must be drowning in paperwork by now ).