MBNA changes member agreement, negatively of course
 

MBNA also just made a whole bunch of negative changes to their agreement -- ALL foreign charges are now 3% (even if in USD) instead of the 1% exchange fee, late fees increased, one late payment puts you instantly in the interest rate penalty box (apparently forever), grace period reduced, overall interest rates increased, and heaven knows what else -- that's just what I noticed at first reading.

OK, is there any credit card left with a reasonable 1% FEX charge?

More generally, since MBNA insists on actually mailing bills at least 7 days after the closing date, the grace period will often be less than 2 weeks if you get bills via U.S. mail. Someone ought to file a class action on this one!

The penalty charges have become so bad that I long for the days when you paid an annual fee and were sort of treated decently instead of making the conditions so tight that it virtually guarantees that you will go into default so they can charge ridiculous fees. Is there a MC/Visa like that anywhere?

Guess MBNA is now worse than AMEX in every way, so time to move foreign charges back to Amex for the time being.

I haven't received the notice yet, but I will be reading attentively the fine print on how to REJECT those charges and use the current card until it expires -- after that, who needs it anymore?

People here are talking about Capital One as a 0% F/X card, but have to confirm it. Otherwise my MasterCard-logoed ATM card has a 1%, and I guess that's what I will be using next. Bye bye MBNA--I'm sorry I hyped you in these forums in the past.

Not all (Merrill, Schwab, Sun Trust, Wachovia ... ) MBNA cards are affected. Your ATM card will soon effectively be 0%, as MC and VISA are dropping their 1% added fees.

RichardInSF, can you share which MBNA card you own that you got sent the notice of changes? Thanks.

I think it'd be nice if there is a running list of exactly which MBNA cards are now charging the 3% fee now that MC/Visa is not charging the 1%.

Sure, it's called "Platinum Plus" MBNA and it annually returns 1% in cash instead of points (got tired of hassling the points).

There were a great many negative changes, let me try to summarize them all here (hope this isn't overkill):

1. APR raised to 8.99% (current rate, it's variable, prime + 3.74%).

2. One default of any kind "may automatically" put you perpetually at a default rate which is fixed at 24.99%.

3. Grace period, should you be eligible for one, for purchases, cash-eqivalents, and Other balances is the end of the billing cycle with no minimum day guarantee.

4. Payment due date may vary from 20-32 days and may now depend on your payment history. I guess this means the payment due date may fall later than the end of the grace period, automatically adding interest charges even if you pay on time.

5. All foreign charges are charged at 3%. This includes foreign charges in USD.

6. "Cash equivalents" (which are some, not clearly specified, items currently regarded as purchases) have an increased transaction fee of 3%, minimum $10, no maximum.

7. Cash advances will have an increased transaction fee of 3%, minimum $10, no maximum.

8. Late fees will be raised. $15 (outstanding balance $100 or less), $29 ($100-250), $39 (more than $250).

9. Overlimit fees will be raised. $15 (outstanding balance $500 or less), $29 ($500-1000), $39 (more than $1000).

10. Overlimit fees may be charged each month and, it appears, under additional new circumstances -- i.e., even if it was their other fees, automatically applied, that made you go overlimit.

11. Payments will be converted to electronic transfers to make them clear faster.

lovely... does anyone have a link to the 0% Foreign exhange rate Capitol One card? I just finished reading the bad news. :(

www.capitalone.com
All CapitalOne CCs will be 0% as of April or May 1st.

Does this mean Merrill is 0% now?
 

I hope that this means that the Merrill + card is not impacted by the change and will be 0% in the future once Visa drops the 1% fee? Anyway you can post a link to this information?

Today I received notice for my MBNA Motley Fool, indicating substantially the same changes as Richard reported above. I too am actively looking for an alternative.

The int'l fee is my biggest focus -- I really do pay on time, even with narrowing windows, so I don't tend to worry as much about that. Maybe using my bank debit card will turn out to be the best choice... Weird...

I just received the same information for my MBNA Quantum World Points card. Definately not a happy camper. MBNA is really pushing my limits this month.

According to another thread (I just love it when people start a new thread instead of contributing to an existing one on a similar subject...NOT!), the MBNA AAA card will stay at 1% foreign exchange fee, and it's a free card with some gas-purchases moneyback benefit. [Edited to add: this is for existing customers; I don't know what they charge new customers]

As far as REJECTING the changes, according to customer service the following is the only way to do so is to play hardball:

====================

MBNA America
PO Box 15565
Wilmington, DE 19850

Re: My account number XXXXXXXXX

Dear Sirs,

I received your Amendments to the Credit Card Agreement, and [b] I do not accept[b] your amended terms under Fee Change--Foreign Transaction Fee. Unless you agree to a maximum Foreign Currency Transaction fee of 1% (one percent) on all my cards, please cancel this account effective the day of the Fee Change, i.e. May 25, 2005.

Please acknowledge receipt of this correspondence and your intentions.

Sincerely,

XXXX XXXXX

=====================

Please post back to tell us if that works! It seems like as a single customer, we don't have too much leverage... especially since most traditional banks are increasing them across the board. It seems to me the only way we can lock into a lower FX fee is through Credit Unions, but who knows how long it will take for them to catch on too!

I just sent my letter off; will post the reply. Depending on the response, I'm readu to open a CapitalOne Go Cash account (which seems to still offer 1% F/X and a cashback bonus that effectively erases it), and even if they don't accept me (for whatever reason) I'm still better off closing the MBNA account as it's one less account to ding my credit rating; I can always get 1% by using my MasterCard-logoed ATM card.

I encourage everyone to send a letter to them as well; as the previous poster mentioned, if MBNA sees a bunch of account closures mentioning the fee change they may grandfather us instead of losing our business.

Just opened my letter from MBNA for my Quantum card. They are going to get a letter. I honestly don't need them, and I have no problem cancelling them. I've been with them for 15 years - way to loose a customer. My credit union has a 1% (or may even be 0% now, will have to check).

Stupid move on MBNA's part to raise the foreign transaction fee for Quantum cardholders, typically their biggest spending customers. After all, the minimum credit limit on a Quantum card is $10,000. Way to drive savvy, ultra-creditworthy customers away. :td: