Remember the horrible Bankruptcy Bill. I just got letters from MBNA today.

[peacebaby3]

They are not only increasing the minimum payments, but they are increasing the APR on both of my cards. One is going up 10% and the other over 8%. I have been a credit card customer with them for over 9 years. I have never been late on even 1 payment in 9 years!

Is this also a part of the bill or is this just MBNA? I have pretty good credit and they have never raised my interest rates (other than the fact that they are variable) in 9 years. They have given me numerous credit line increases even when I didn't want them. I have a line of credit (not going up, but I don't owe anything on it anyway). I don't owe that much on both of my cards. Unfortunately, it is more than I can just pay off.

I wanted to let everyone know if something similar happens to you, make sure you read the entire letter because buried in mine is a "right to reject" the APR increase. It has to be in writing and sent to a certain address before Oct. 21, 2005 when the increases become effective. You can no longer use the card after Oct. 21 or the higher APR becomes effective even if you have a written rejection.

I wrote an individual letter for each card and cut them up. I'll just pay them off as quickly as possible.

Has anyone ever done something like this before? I'm wondering if I should send these letters certified? I sure hate to pay the extra costs, but I don't know how else I can guarantee they get the letters.

I know GD is very busy today with hurricane news as it should be. I live on the Gulf Coast in AL and have seen some of the devastation here first hand, but I'm hoping to keep this kicked for a little while to give people a chance to see it.

Edit: really bad typos! Hope I got them all.

[graywarrior]

1. I tried working out a payment on my overdue accounts.

They are NOT making deals. I met with a layer yesterday. I'm filing. I cant keep up with the added interest rates with only one of us working.

[elehhhhna]

4. IF YOU THREATEN TO FILE they will usually make that deal.

They'll even settle for less tha nthe total.

[dave29]

9. be careful with the "payoff" deal

you will get hit with taxes on the amount they don't collect

[peacebaby3]

21. Well, I will be paying them all that I owe just at the original agreed

upon interest rate before the increases. Will I still have to pay some kind of taxes?

[Maru Kitteh]

35. I think the other poster is talking about a charge off by the company

meaning when you file if they write off your debt then whatever you owed on the card is counted as taxable income by the IRS and they will send you a 1099(?)for it.

This doesn't happen very often. Usually your debt, or rather the right to collect it is sold to some other pack of assholes that will hound you mercilessly.

How do you feel about moving?

[peacebaby3]

39. Thanks. I don't think I should have to worry about that since

it shouldn't be charged off. I'll actually still be able to use my cards but if I do, all the debt will automatically revert to the higher interest rates. That's why I'm going to cut them up so I won't even have the option.

[FloridaPat]

19. I could only get them down to 50-60%. Being unemployed that

was way to much. Their response: get a second mortgage on my home and pay the 50%.

My response: bankruptcy.

[onecent]

2. This should NOT be legal. I have kids who will very much be affected

by this. This is horrible. I had heard something about it previously but didn't think much of it.

[elehhhhna]

3. Send 3 seperately by registered receipt. Call first for addr. where

they can sign for it.

[peacebaby3]

30. Thanks! They do have a PO listed as the address. Good idea! n/t

[peacebaby3]

32. Self delete. n/t

[FighttheFuture]

5. You have time, mail a $.037 letter, then call them...

to confirm the account is closed under the old terms. If not, then send a certified letter. That's what I've done in the past.

I'm wondering what they have planned after Oct 17th!!

[VolcanoJen]

6. They upped my interest rate a few weeks ago.

Discover Card went from 10% interest to 18% interest.

The letter said that they appropriated my credit rating, judged my debt-to-income ratio, and were sorry to report that they were going to FUCK ME IN THE ASS FOR PAYING MY BILLS ON TIME.

Unbelievable. Is this America?

[LiviaOlivia]

7. Write Senator Biden

And every Dem that voted for this POS

[Zomby Woof]

8. MBNA is a MAJOR Bush donor

They were his #1 contributor in 2000.

Drop 'em.

[peacebaby3]

28. I know, but I was already in bed with the devil by then and don't have

enough cash to just pay them off. At least this way I will have no choice. I had already started to think about trying to get a card where I could transfer the balances. May have to really take time to do that now.

[hobbit709]

10. Here in Texas at least

they can't do diddly squat to you. a few years ago we got into financial trouble and got behind on the credit cards. With the late fees, over the limit fees and higher interest we couldn't keep up. My lawyer told me to tell them to go fuck themselves. Yeah, there were a lot of harassing calls, but they stopped when I said I was recording their threats. In the last couple of years we were given new cards and we just keep a very low balance on them.

[SammyWinstonJack]

26. That's the one good thing about being in Texas, they can't

garnish your wages for anything but child support some fed taxes and student loans and they can't take your property.

[Davis_X_Machina]

11. If you are late on one payment...

...to another creditor, anywhere, they can raise your rate on your account with them.

It's called 'universal default'.

[peacebaby3]

18. Yes. I have heard of this, but I haven't been late on one payment to

anyone.

I actually called and asked. First, they said they didn't know. Then they sent me to a credit analyst who acted like he didn't really know either. Then he came up with some crap about how my balance had stayed within $500 of the credit limit for more than 5 months on one of my cards. I told him that actually I have always kept my balance higher for closer to 9 yrs!!!! LOL I asked him why after 9 years would that matter since it just means more money for them. He couldn't really answer and didn't seem to care at all either so I am just going to refuse the increase and not use them anymore. I just hope they don't try to screw me. I thought maybe this had something to do with the bankruptcy bill because both letters were like form letters that they would send out and both also included the new info about the minimum payment increase.

[Javaman]

12. I have 300 left on my one card with them, I'm paying it off and canceling

[Dr.Phool]

13. Last month I was late on a payment for the first time.

I had to leave town for an emergency. I thought I had all the bills paid before I left, but I missed one credit card. I was out of town for 2 weeks, and promptly paid it when I returned. The money was in the bank.

Fucking Chase jacked up my rate from 7% to 28%!

I have a mortgage, and 2 credit cards with them. I'm severing all business with them next month. I've never been late with anything for at least 15 years.

[dsc]

16. call them first

I bet they will undo that increase and maybe even give you something for having done so.

[CrispyQ]

23. Bloodsuckers, pure & simple.

They are the lowest of low.

Unbelievable that they would treat you that way & risk losing your business. These guys are way over confident that they can't be hurt -- fucking assholes.

I have 2 Chase cards & I will check my statements very closely this month for any changes.

[killbotfactory]

14. I think there was some law that is making them up the minimum payment...

as for the APR... I have no idea.

Get a credit union card. Seriously

[sendero]

15. We had...

... 2 MBNA cards and we cancelled both of them (replaced them with other cards) within a couple weeks of getting their "Here's the new deal whether you like it or not" letter.

When my wife cancelled the second card, the rep got real smarmy and badgered her about why she was cancelling and how could they keep the business... she told them that although all the credit card companies suck, theirs is easily the worst of the bunch and she was done with them :)

[xchrom]

17. they have to increase the minimum payment to include

payment on the principle.

but yes the bankruptcy bill is war on the middle and working classes.

it's an unmitigated nightmare of rather mythic proportions.

[bribri16]

20. Kick. This is happening all over. With cost of gasoline and the rest

and no way to get bankruptcy now all the middle class and poor are getting LOOTED by the banks. Thanks to the Republicans and the Bush administration and the DINOs. Let your Congresspeople know what is happening to you and demand that they rescind that awful bill or set interest rates on credit cards.

[FloridaPat]

22. The raise in the min pamyment is from the new law. The APR raise

is because:

1. Interest rates are up about 5% so your rate will go up 10%.

2. With the min payment going up, they will get less money because you will pay it off faster. So this will even that out.

Most of these rate increases are done if you use the card again. Check the fine print. If you don't use the card, you should be able to pay it off at the old rate.

[peacebaby3]

29. Thanks. That makes since about the APR. Now that you brought that up, it

seems like I may have heard something about a pretty big jump in interest rates.

I was expecting the higher minimum payment because of the bankruptcy bill. I wasn't too worried about it for me because I try to pay over the minimum anyway, but it really angers me because some people will not be able to afford it and then they will be hit with the absolutely ridiculous late fees, higher interest rates, and then over the credit limit fees once the late fees & interest put them over.

As someone else said - bloodsuckers!

[bribri16]

24. Send this to Lou Dobbs too. n/t

[jpak]

25. Gas and Heating Oil Prices, Katrina and the Bankruptcy Bill

The Perfect Fucking Economic Storm.

Remember who sponsored, and voted for, and signed this fucker people.

Payback comes November 2006.

[CountAllVotes]

27. MBNA card I still have (why?)

I have an MBNA Visa card (L.L. Bean is the reason why) and I owed them .20 cents after a credit came through. I went to pay it on line and they required at least $1.00 as a payment, so I sent them the $1.00 they wanted leaving me with what is now a credit balance of .80 cents.

I did this on August the 18th, 2005.

The $1.00 had no been subtracted from my checking acct. I noticed on August the 28th. I called them what was going on, why was the payment not posted yet? They said that it would be paid out on the last day of the billing cycle. That is the way it works they claimed.

I then asked them, "When did you change your policy re: this? It used to be that if you schedule a payment for a specific date, that is the day the payment occurs?" They claim it has always been like this; subtracted the last day of the billing cycle. What if you have an outstanding balance and make a payment quickly, do they get even more interest by delaying the posting of the payment this way? :wtf:

I then asked them, "What if that .20 cents had not been processed in time by you as I had scheduled it for already? Could this have ruined my credit?" The person I talked to said, "Yes it could have." I am going to be rid of them very soon. They can shove their L.L Bean VISA card up their ass!

I suggest you do the same once you are able to pay them off or, as suggested, I'd get a loan (or another credit card) from a credit union to pay it off. MBNA is playing some big games!

Time for an MBNA credit card boycott I suggest! :grr:

edited for errors due to my crappy eyesight .....

:kick:

[wovenpaint]

31. The expression that USED to describe these practices

was LOAN SHARKING. Oh yeah, it's "illegal" also.......:mad: :grr:

[CountAllVotes]

33. I just checked .... it is a scam that is working nicely for MBNA

I found an statement of payment to MBNA (a few months ago) that I had requested to be paid on the 9th and it was paid on the 9th, not at the end of the month.

If you are carrying a balance, you end up paying interest on the entire balance regardless of when you made that payment being they are holding it until the end of the cycle. This is of no consequence if you pay the bill off in full every month but if you do not, you will find you are going deeper and deeper into the debt home.

Seems to be this is illegal as hell. What exactly can one do? Next step?

:grr: :grr: :grr:

[peacebaby3]

34. Wasn't there a blue/progressive credit card posted on DU one time?

Does anyone remember this? I wonder if they would let me transfer my balances??? I would much rather pay them the interest.

If anyone has any info about this, please let me know.

Thanks.

[peacebaby3]

38. Kick - n/t

[NVMojo]

36. Send a personal thank you to our Senator Harry Reid ...he voted for this

[peacebaby3]

37. Kicking for the night folks. n/t