MBNA Mastercard Canada - Increased Interest Rate (ALMOST DOUBLED!) Without Proper Notification!
I have been a card holder with MBNA since 2004. Several years ago, I called to see if I quality for a lower interest rate (or if they had a low interest rate card) than the 19.99% I had at the time. Indeed, they reduced it to 11.99%, and I was allowed to retain the reward program for the card. I was just digging through my electronic statements, and realized that my interest rate has been increased to 21.99%!!! As I continued to look back in my statements, I realized this increase happened over a year ago, and nothing was mentioned in any of my electronic statements.
I assumed this was a mistake of some sort, so I called to resolve it. I was informed that it is within their right to increase my rate at any time, even though I have never missed a payment or overdrawn my balance, and always pay more than the minimum payment. They are required to send me a letter to notify me 60 days in advance. However, because I only receive electronic statements, I do not always open paper mail I receive from MBNA, because it has consistently been promotional offers.
While this increase is technically legal (I will be looking through my unopened mail for that letter!), I think it is horrible customer service to nearly double the interest rate for a reliable and loyal customer of 10 years, with only a paper letter, particularly when the customer only receives their statements electronically. I'm disgusted with them! I will be paying off my balance as soon as possible and closing my account.