MBNA - Greedy Little Bastards
 

I have two accounts with MBNA and just received a notice on one informing me the rate type was changing from fixed to variable. The variable rate is based on the prime rate + a margin of 9.9%. Gee, is it just a coincidence this change is occurring just as the lending rate is going up and will be for the foreseeable future? Why didn't my interest rate go down to coincide with the drop in the prime rate over the past 5 years?

I called MBNA and the representative told me it was the company's intention to change the rate type on ALL accounts. According to an article, the CFO of MBNA does not see the loss of too many accounts as a result of this change. Well you can start with my two accounts being closed.
:mad:

1. MBNA is the only major bank I know that does not charge the extra ripoff 2% for foreign currency conversion. So my impression of them is that they are one of the least greedy of the majors.

2. I have never understood why anyone would allow a bank to charge interest on a credit card when it can be avoided by paying the balance in full. (Those intersest rates are almost always worse than any other type of loan, except perhaps from a loan shark.) But I do appreciate such folks, as they are the banks' motivation to provide us with miles to open credit card accounts.

I have an MBNA Aeroplan Platinum Plus MasterCard, the rate is 7.90% Fixed, no notice yet. Though it wouldn't surprise me if they will. If so, I will just go with it, since I usually pay that card off in full each month. Although if you carry a balance I can understand why you would be. I have a 4.9% fixed card for my balance needs, which is usually rare. ^

I too have my balances on a 4.9% fixed with AMEX. I rarely ever carry a balance on my MBNA accounts. It's just the principle here. I am tired of entire industries, credit card companies and airlines come immediately to mind, nickel and diming their loyal and best customers with extra fees and charges while cutting benefits. PGary can back me up on this claim. I just canceled my MBNA AAA card because the gas rebate benefit was cut by over 60%. I recognize companies need to make money to stay in business but this is getting out of hand!

Please clarify. They reduce the rebate from 5% to 2% Or are you referring to the maximum daily amount which was reduced from something to something lower that I can't recall?

5% to 2% AND the maximum daily amount AND the acrual of diamond reward points for AAA purchases.

MBNA's little spiel is you can still get 5% gas rebate based on the amount of your other retail purchases. I strictly used this as a gas card so the card is no longer of any use to me. If I wanted another rebate card product for gas and other retail purchases I would have gone with Citibank. MBNA still does not give you a rebate on retail purchases it just determines how large your gas rebate is.

Capital One also does not levy a surcharge (above the 1% that Visa or MasterCard levies) on foreign transactions.

It is all explained on the Free Cards page of the Credit Card section of my website, Free Frequent Flyer Miles. Essentially you get 2% on gas purchases immediately, and another 3% is reserved for 2% discounts on other purchases on which you could be earning miles instead.

You might want to try - I am closing my account because of the high interest rate or I found a better deal somewhere else. I have used that in the past to get a lower rate, at least until they want to raise it again.