MBNA Complaint - MBNA: Financial Predator
WASHINGTON -- Stay away from this company. Do not do business with MBNA in any form. You may think you are getting a good deal or not having problems, but if you continue to do business with them you will eventually find out exactly how predatory and deceitful MBNA is.
Case in point: In 1998 I opened a Gateway card with MBNA at a very reasonable 9.99% Or so I thought as that rate quickly climbed to a still manageable 13% despite ALWAYS (and I do mean always) paying much more than the minimum payment. I had been trapped in the minimum payment treadmill many years ago and I learned my lesson.
Fast forward another year. The initial purchase I used the card for was paid off, so MBNA offered me a substantial credit line increase in lieu of closing the account. I ran the figures and decided that I could afford to take some of that money and use it for another purchase. That was a mistake.
Despite having excellent credit and never missing a payment with this or any other creditor, MBNA decided I was a bad risk and increased my interest rate to 24.99%. That began a 5 year running battle with MBNA of them raising my rate, me calling them and getting it "lowered" (always to at at least a point or two higher, because they couldn't offer me the rate prior to the increase). This rate increase/decrease cycle takes two payment periods to get through so for two months all the extra ($200 or more) that would have gone to the balance goes to pay interest. The new "lower" rate would hold for a few months during which I could just about get caught up by paying even more and then BAM! another 25% interest rate.
I'm finally free of this company. It took me an extra 2 years and almost $4000 dollars, but I look on that as the price of experience.
Don't make the same mistake. If you must get a credit card, look elsewhere. Be careful and stay away from MBNA or any of it's affiliates.