MBNA hiking minimum payments on low-rate card

In 2008, Rebecca took out an MBNA credit card with a low rate of 1.99 per cent. She was told the rate would never go up as long as she paid the minimum due each month.

She continues to pay promptly. But she doubts she can do so in the future because of a change in the way MBNA calculates the minimum payments.

The result is that she’ll have to pay $474 a month, compared to $79 now, to keep her account in good standing. She thinks this is unconscionable.

Rebecca wants to wait a few months until she sells the house she has just renovated. (The $41,000 debt on the card stemmed from these repairs.) She’s worried that if she makes any late payments, MBNA can yank up her rate to 20 per cent or more.

Her story shows the risk of depending on low-rate credit card offers to last indefinitely when the card issuer can change other key terms and conditions.

I’ve posted her letters and MBNA’s response below. What do you think?

Author: Ellen Roseman

Consumer advocate and personal finance author and instructor.

160 thoughts on “MBNA hiking minimum payments on low-rate card”

Comments are closed.