MBNA SOLD to Bank of America - Bankruptcy law creates massive debt paydown

[cyberpj]

Bankruptcy law scaring people into paying down debt

April 25, 2005
The credit card industry was patting itself on the back when the new bankruptcy law it has been pushing for finally got passed recently. But the banks and credit card companies may soon regret what they wished for. The new bankruptcy law has gotten so much publicity that people are scared and they’re paying down their credit card bills at an unprecedented rate. People are realizing that there is no second chance with this new law. If you borrow a lot of money, you’re going to have to pay it back now. And people don’t like paying money back, so they’re being more careful with credit. MBNA, for example, has already had a decline in profits of 94 percent. Capital One has also seen its outstanding balances decline. As a result, these companies are going to flood your mailbox with solicitations for cards. It’s a move of desperation, and you don’t want to get involved. So, keep paying down your debts and let the credit cards reap what they sow.

http://clarkhoward.com/library/tips/credit_cards.html

================================================================
Bank of America agrees to buy MBNA
Bloomberg News

FRIDAY, JULY 1, 2005

NEW YORK Bank of America, the second-largest U.S. bank by assets, agreed Thursday to buy MBNA for about $35 billion in stock, challenging Citigroup, the market leader, and J.P. Morgan Chase in the credit card field.

Bank of America, based in Charlotte, North Carolina, said it planned to cut 6,000 jobs after the purchase.

The deal reshapes the U.S. credit card industry by taking out the largest nonbank issuer and by vaulting Bank of America ahead of American Express in one of the fastest-growing U.S. financial-services markets.

(snip)
MBNA said this year that customers had been paying off more debt than forecast, particularly on cards carrying its highest interest rates, favoring less-expensive sources of credit like home-equity loans. MBNA also ended a program offering zero-interest credit cards to some customers, a tactic that backfired as some cardholders defected to competitors offering the teaser rates. MBNA cut jobs and sold assets.

http://www.iht.com/articles/2005/06/30/business/bofa.php

[MadHound]

1. Good news, bleed these mofos dry

And once you've paid off your credit cards, cut them up and throw them away. Go to a cash/check/debit card economy, and let the CC companies wither on the vine.

[Iris]

3. Absolutely. Who in their right mind would want to be beholden to

these companies now? I'll bet they're going after college students even more aggressively now.

[MadHound]

7. It's already started.

I was going through campus a few days ago, and was accosted by some kid making minimum wage by handing out MBNA apps to summer school students, and this fall's freshmen who were here for summer welcome. Generally they wait until after fall semester opens, but with declining revenues I guess they figured they had better get a jump on fleecing the sheep. Absolutely disgusting.

[Iris]

12. I'm enrolled in a graduate program - 1 class at a time and I've started

getting student offers in the mail almost daily.

[MadHound]

17. Yikes, I may have a solution for you.

I have heard that the best way to get these people to stop bothering you is to take that postage paid envelope, tape it to a brick, and drop it in a mailbox. Not that I've tried this, but I have heard that it is effective in clearing up your mailbox:evilgrin:

[cyberpj]

20. Oooooooooo - I like that idea. Maybe not tape it to a brick but

put the brick in an envelope...........

Yes!

[MsUSA]

27. When I get their applications, I remove my name from any

of the paperwork, rip or shred it and put it back into the postage paid envelope. I've been known to send other junk mail (minus my name) in it too. Great satisfaction. :bounce:

[cyberpj]

16. Yes. And I heard they have a special offer for THE MILITARY now.

There's just no level to low, is there?

[Iris]

48. I wonder what sort of incentive they offer them.

When I was a sophomore in college, Discover would give you a candy bar (you got to choose!) for filling out an application.

Maybe they offer soldiers bits of body armour or something useful.

[cyberpj]

53. Sadly, I've heard it was 0% until they were home again for all the things

their families might need while they were serving their country.

I swear, there was slight involuntary regurgitation activity when I heard it.
So when I say I had a visceral reaction you'll understand just what I mean.

I know I'm not the one doing it but I'm still ashamed.

pj

[DS9Voy]

43. Actually they are not

My son in college was just denied credit from MBNA for "too much available credit" (He has $2000 total credit available to him)

[Iris]

47. But they still got him to fill out an application.

Didn't they?

[cyberpj]

54. I guarantee if he spent up to the limit they would give him more.

Ok. I can't guarantee. But I'll betcha.

[Mairead]

6. Yep! Let's keep the money in our own pockets from now on!

I have only one cc, a visa from my credit union, and auto-pay the balance off each month before I've to pay interest. Since a credit union is non-private-profit (socialist banking!), they are just fine with my frugality.

[cyberpj]

18. Me too. 1 cc with a credit union for great rates if you need them, but

pay off the balance each month and don't charge more than you can pay off.

[cyberpj]

15. THAT's what I say too! Good to see most people understood the deal.

Although. I live in DE and MBNA is our largest employer so it has it's down side here. Still, if they just hadn't gotten so damn GREEDY!

[placton]

44. And it works!

While I still have credit cards, I mostly use my debit card. It really has helped keep my spending under control.

[Mandate My Ass]

2. They didn't "push" for that crap bankruptcy bill

They wrote it!

I hope these leeches rot. At the time that bill passed the CC companies came off a record-setting year for highest profits and lowest defaults. And they still cried that they needed this bill because of irresponsible borrowers.

F**k 'em all.

[Media_Lies_Daily]

8. Their definition of "irresponsible borrowers" includes those people....

...that run into huge medical bills stemming from totally unexpected illnesses.

It also includes those people who owned small businesses that suffered severe downturns following 911 and were never able to recover.

The credit card companies are going to regret the day they decided that this new bankruptcy bill was going to be good for their industry.

[benburch]

4. There is a God!

Fuck you MBNA.

[Media_Lies_Daily]

5. "People don’t like paying money back"?? IMHO, that's not ...

...a very good comment.

People don't mind paying what they owe when interest rates are kept within reasonable ranges. Once interest rates top 11% and keep climbing, that's when people get VERY anxious and begin wondering if they'll ever be able to pay off their debts.

The approaching deadline for activation of the new Bankruptcy Bill is also fast approaching. A friend of mine who is a partner in a law firm specializing in financial solutions is seeing his case load beginning to skyrocket as more people eligible for Chapter 7 bankruptcies begin to come forward.

A Chapter 7 bankruptcy is the elimination of all unsecured debt such as that generated via credit cards. That is also going to lead to a big downturn in profits for the credit card industry across the board.

[acmejack]

9. We were just talking about credit card solicitations.

Everyone was commenting on the large number of preapproved credit card offers they were receiving! I have gotten some lately with unbelievably large limits.

Die leeches!

[windlight]

10. The heck with them...

I was carrying and paying down 3 cards from MBNA and Citi, with nearly 9000 balance. Well with the new Law i figured they were going to raise my rates just because i had high balance. Well to heck with them and I borrowed from my CU what i needed to pay off those cards and now have a fix rate lower then those cc's were...

Let'em rot.

[SnowGoose]

11. Now why would Bank of America want the National Man Boy Love...

oh crap, nevermind. It's the dyslexia acting up again.

[lasttrip]

13. FU mbna

total asshats.

thanx again biden.

[lateo]

14. That is fucking hilarious...

I paid off all my credit cards this year. Haw.

[cyberpj]

19. Doesn't that mean we're in the countdown to monopoly now?

Citigroup - Saudi connected, and Bank of America - the king of outsourcing.

Very interesting.

[realFedUp]

21. I guess we'll have to call Joe, BofA Biden now....

That's amazing and heartening news. The power of the people.

[kohodog]

56. How will Joe MBNA run for president now?

He lost his sugardaddy!

[BonnieJW]

22. Send back the envelopes

The return envelopes that come with the credit card offers have return postage already on them. Put an anti bankruptcy law article in the envelope and send it back. It costs the credit card company about 30 cents per envelope. I've been doing it for years.

[cyberpj]

23. Will do! And welcome to DU BonnieJW!

:hi:

[BonnieJW]

36. Thanks for the welcome!

I don't usually post. I lurk, read and learn more from this web site than I ever did in college. Thanks to everyone for all your information.

[Theres-a]

24. Welcome to DU!

Check out this site http://plasticrevolution.org/

[Glenda]

35. Interesting site

thanks for the link!

:hi:

[DemoTex]

37. A tactic from Abbie Hoffman's book "Steal This Book."

Actually, I think Hoffman advocated taping the envelope to a brick to increase the postage due.

Welcome to BU, BonnieJW!

[Coventina]

25. As Nelson Muntz would say....

HA HA!!!!!!!


I got a credit card from my credit union. Kicking MBNA to the CURB!!

Not only are they slimy on the business side, but they are rude to their customers as well!

[cyberpj]

26. MBNA President/CEO w/become BoA CEO/Pres of Card services

Awww.... isn't that sweet?

MBNA President and CEO Bruce L. Hammonds, 57, will become CEO and president of Bank of America Card Services and report to Liam E. McGee, 50, president of Bank of America global consumer and small business banking. Hammonds will remain in Wilmington, Del., where MBNA is headquartered, and be part of Bank of America’s risk and capital committee.

Frank P. Bramble, Sr., a vice chairman of MBNA, will be appointed to the Bank of America’s board of directors.

Bank of America said the agreement has been approved by both boards of directors and is subject to approval by regulators and MBNA shareholders.

The company said about 55 percent of the combined company’s earnings will come from global consumer and small business banking, 17 percent from global business and financial services, 11 percent from global capital markets and investment banking and 10 percent from global wealth and investment management.


Here's the latest article from our Delaware newspaper:
http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20050630/NEWS01/50630003

[OxQQme]

28. Michael Moore said

it best. "This nation is built upon four words; 'I promise to pay'......
......and if we didn't ?????

[KharmaTrain]

29. Six Of One...Half A Dozen Of The Other

As one who worked his way out of credit card debtor's hell, I know the games these bloodsuckers employ. I can only imagine how much more draconian things will get.

There's way too much debt in this country and that ticking time bomb hurts all of us. It definitely hurts those with the least redress the most...creating a new form of serfdom...forever owing to the large banks and corporates. If this bill scares people to pay off debt and get out of the clutches of these vampires, I see something good happening here.

Right now I'm watching C-SPAN, and some Repugnican goon has stuck an ammendment on an appropriations bill the ability of credit card scum like MBNA to raise your card rate...even if you never miss a payment or come close to your credit limit, based on problems with another creditor (or I'm sure on a change on your FICO score).

The greed just boggles...

[pgh_dem]

45. I think the funniest thing that can change your credit rating...

is the number of times credit card/lending companies *check your credit rating*.

WOO!

[catmandu57]

30. Then there are some people like my brother

who will keep on smiling, racking up the debt, and paying no attention to what I've been saying. He doesn't know the shit storm that's headed his way, to which I say okay you've been warned, if you can't clean your ears out and listen then you deserve the reaming.

[Deja Q]

33. Better check to see if he has a way out. After all, we come in and leave

with the same amount of money. Zilch.

In other words, see if your family member is depressed or anything else to the point of potential suicide once the money stops coming in. If you care, that is. That's your problem, not mine. Actually, I care enough to blather but even this cesspool of a society has whittled away my ability to care.


edit: Spelling

[DS9Voy]

41. What do you mean by "racking up the debt"?

As in "I have a credit card with a $10,000 limit time to go on a shopping spree and worry about the consequences later"

or

"Can't find work, so my only option to eat is to use the credit card"

[cory817]

31. mbna

I have a line of credit with MBNA that has a zero balance that I never use but I didn't ever close it, and I probably will just close it, but do you think it will be automatically moved to BA, or do you think mbna will still exist with its name website etc and just be owned by BA, or maybe you have to call and move it. I'm just trying to figure out if I need to do anything, you think they'll just send a new BofA card with the mbna credit or will it have to be approved or something or could the interest change, I would think they would just assume everything amounts/interest.

[Deja Q]

32. Excellent. This will mean their end, even after peak oil comes.

Hoisted by their own petard.

[Larkspur]

34. Karma is a wiley witch! Great news that credit card companies are

suffering from the unintended consequences of the bill they wrote and paide to get passed.

I'm one of those who will have my credit card bills paid off by end of this year. "Freedom is on the march" in my household. Yeeehaaaw!!!

[cyberpj]

38. Citigroup - Saudi connected, and Bank of America - the king of outsourcing

I think that's all that's left now.

Smells like Monopoly to me...

[DS9Voy]

42. Um there are many CC issuers left

This is probably a good thing. MBNA is MUCH more cold hearted than BofA. MBNA practices much more evil credit practices. This will help a lot of people in debt that were getting screwed by MBNA.

[ChiciB1]

51. Ruling Elite In Bed With The Saudis....

This has been going on for years and years. Do research on the Bushies and the Saudis and it's all there.

The Corrupt Ones have used reverse psychology on the American population by making them think they're getting something, when actually they're grabbing it ALL for themselves.

I guess that only time will be the answer... time when those who are so RAH, RAH for these idiots come to see that they go NO BANG FOR THEIR BUCK!

What they got was Buck Fucked!

[cyberpj]

57. It just keeps showing up, doesn't it?

Do you think Americans will ever know or accept that it was used on 9/11 as well?

I'm tired having what feels like (should be) common knowledge when it's not.

[killbotfactory]

39. I'm in debt up to my eyeballs

yet every day i get one or two new credit card offers.

fucking jackals.

[DS9Voy]

40. Opt out of the CBs

and the offers will stop coming.

Go here: https://www.optoutprescreen.com

[cyberpj]

49. It looked good. I wanted to. But I just can't bring myself to give SS#

online. Ever.

Guess I'll just go on mailing them bricks for a while.

Or write a letter.

[killbotfactory]

58. done and done

thanks for the link

[seemslikeadream]

46. Helicopter crash - Mr. Hammond and Mr. Bramble on board

Survivors in N.Y. copter crash have local ties
2 MBNA executives headed Allfirst, graduated from UB
Staff And Wire Reports
Originally published June 20, 2005
Two top financial executives with Baltimore connections - including former Allfirst Financial Inc. Chairman Frank D. Bramble Sr. - were among the survivors of Friday's helicopter crash off Manhattan.

Bramble, vice chairman of MBNA Banking, did not sustain serious injuries. He was one of six MBNA executives in the helicopter that plummeted into the East River.

The passengers and one of the pilots were treated and released from Bellevue Hospital. A second pilot, Mark Schaberg, 56, was reported in serious condition at Bellevue yesterday.

The company's chief executive officer, Bruce L. Hammonds, 57, of Wilmington, Del., a University of Baltimore graduate, was also on the helicopter. He took over as CEO of the company in 2003.

Bramble, 57, joined MBNA, the Delaware credit card issuer, in July 2002. He retired in April 2002 from Allfirst bank after it lost $691.2 million in a foreign currency trading scandal.

Neither Bramble nor Hammonds could be reached for comment yesterday.

Bramble served as chairman of the Greater Baltimore Committee for three years and helped save the Mechanic Theatre in 1996. He also led a lobbying effort that helped save the Hippodrome Theatre when its funding was in jeopardy.

The world's largest independent credit card lender, MBNA began in Baltimore and was once called Maryland Bank N.A. After Maryland lawmakers failed to extend limits on interest rates that credit card issuers could charge, the company moved to Delaware in 1982.

Federal officials are investigating the cause of the crash - the second by a helicopter off Manhattan in four days. Yesterday, investigators prepared to truck the wreckage to a Delaware recovery facility, and police divers searched for broken rotor blades in the river.

The Sikorsky S-76 took off from the 34th Street heliport about 4:40 p.m., en route to Wilmington, Del., when it suddenly fell tail-first one block north, landing in the East River just blocks south of the United Nations headquarters, police said.

According to Lance Weaver, 50, the company's chief administrative officer, the helicopter was upside-down in the river.

As water rushed in, Weaver and Richard K. Struthers, 50, a vice chairman, pushed open the helicopter door, allowing everyone to escape into the water, according to a statement posted on the company's Web site by Louis J. Freeh, the company's vice chairman and general counsel.

Bramble pulled Douglas R. Denton, 58, chief technology officer, and Hammonds from the helicopter as it sunk. Pilot Blair Payton, 42, helped Schaberg, who was in distress, keep afloat until help arrived, according to Freeh.

They were yanked from the water minutes later.

"Thanks to the heroism of several Good Samaritans on shore - and in the river - as well as the combined efforts of all of the New York City emergency services, I am pleased to confirm that everyone on board survived the crash," Freeh wrote.
--------------------------------------------------------------------------------
MBNA executives aboard helicopter

The six MBNA Corp. executives on a helicopter that crashed Friday into the East River in New York City:

FRANK D. BRAMBLE SR., 57, of Baltimore, vice chairman of MBNA Banking. Joined the company after retiring from Allfirst bank in April 2002. Previously held senior positions with NationsBank Maryland.

DOUGLAS R. DENTON, 58, of Wilmington, Del., and Plano, Texas, vice chairman of technology. Denton has been with MBNA for about 15 years.

BRUCE L. HAMMONDS, 57, of Wilmington, Del., chief executive officer of MBNA America and was a member of the team that established MBNA America in 1982.

RICHARD K. STRUTHERS, 50, of Greenville, Del., vice chairman of international and commercial lending. Responsible for MBNA's U.S. regional operations. Struthers was a member of the management team that established MBNA America.

LANCE WEAVER, 50, of Wilmington, Del., chief administrative officer for MBNA America who also oversees the bank's community initiatives and the MBNA Foundation. He joined the bank in 1991.

THOMAS D. WREN, 53, of Wilmington, Del., group executive, treasury. He is also a member of the board of directors of the Delaware Community Foundation.

Also on board were pilot Blair E. Payton, 42, and co-pilot Mark Schaberg, 56, both of Middletown, Del.

http://www.baltimoresun.com/news/local/bal-md.copter20jun20,1,7708040.story?page=2&cset=true&ctrack=1&coll=bal-local-headlines

PR Newswire; 7/12/2001

WILMINGTON, Del., July 12 /PRNewswire/ --

MBNA Corporation (NYSE: KRB) announced today that Louis J. Freeh, former director of the Federal Bureau of Investigation, will join the company as senior vice chairman for Administration and will be a member of its Executive Group.

Mr. Freeh comes to MBNA after 8 years as director of the FBI. Previously, Mr. Freeh served in the U.S. Attorney's Office as a Deputy and Associate U.S. Attorney and also was a United States District Court Judge for the Southern District of New York. Throughout his career, he has been recognized for his ...

http://www.highbeam.com/library/doc0.asp?docid=1G1:76483843&refid=ink_tptd_np&skeyword=&teaser=

[cyberpj]

55. I'm from DE so I saw all that in the paper last week. I thought of it too

when I heard about the sale. Those guys had a life-changing experience for sure.

But why post the 2001 article about the FBI guy? It's very interesting, that's for sure, but are you implying some connection?

Man. It's quite a lifestyle innit?

[ChiciB1]

50. Weeelllll.... I Was Going To Start A Thread About A Topic Close To This

I need some help with a problem regarding "credit cards' and I'm not sure what to do about it.

Recently, I lent a family member use of my credit card for ONE transaction. I got the card back, but THEY had the number. Since I rarely use the card, imagine my surprise when my billing came in and the balance was over $8500.00! This card has 2 different people as co-owners and I don't want to press fraud charges, however the OTHER person does. This other person never used the card, nor did they pay the payments, ever! I've talked to the card company and requested the account be closed. My first question is.... since the company allowed the card to be used without the actual card being shown, AND they also allowed the balance to go over limit by $1000.00 +, do I have ANY recourse with the credit card company?? Or will I have to file fraud charges??

My second question is... Since the other person wants to file fraud charges, they had a detective contact me stating that the balance needed to be paid within 2 weeks. They didn't tell me what I would be charged with, and I'm suspicious that a detective contacted me in the first place. Since I had already spoken to the card company and had the account closed, isn't it up to the credit card company as to whether I can be charged with a crime??

The account is not past due and never has been, AND I just paid $2,500.00 to bring the balance down. Now I'm having 2nd thoughts about the credit card company since they should never have approved any use once the card maxed out. Also, I think someone should have alerted me that the card was being used at such a fast and furious pace, especially since there had never been a lot of activity with the card.

My reasons for not filing fraud charges ARE complicated, and yes I know I shouldn't protect ANYONE, but my heart's not in it. The person is an immediate family member who has a drug problem and is now in rehab.

Is it common for detectives to contact a person and demand payment??? Shouldn't that be done legally through the court system?? Don't some sort of papers have to be filed?? Isn't it up to the credit card company???

And yes, I AM asking for FREE legal help!!! Sorry.

[cyberpj]

52. Wow. Empathizing here. You had lots of good questions (and details)

If co-owner means both names are on the account and both have cards in their own names then the other person has some right to file.

The detective part sounds shady. A lawyer, maybe, but not a detective. Could this be a friend of a friend on a scare mission?

You may have to offer to pay the co-owner off but it would never be in two weeks and I agree with you that the cc co should have been aware of the odd activity and contacting you about it.

BUT - you would have to comb the fine print of your account to see if they claim to provide that level of service AND - pricks will make you sue them to prove it.

ALSO - I've had cards that wrote it off and issued me a new number as long as I signed paper saying I didn't do it even though I paid a $50 charge. Sometimes you just have to contact - preferably write - the right person and explain and plead.

Not legally certified but been there, done that.

pj

[ChiciB1]

59. Just Want To Thank You For The Reply....

I started another thread about this because I saw that this had slipped to the 2nd page. I just checked my posts and see you responded. I did get some good advice there too.

Thanks again for your interest and help.