Repriced account

Posted Sun December 11, 2005 12:14 am, by Jason M. written to MBNA

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Your Golden Key Preferred Mastercard has given me exceptional flexibility and purchase power. It has been a pleasure to carry your card: I have never had a transaction declined, and customer service has generally been helpful in resolving the few problems that I have had with the account. In return for this positive relationship, I have charged the vast majority of purchases to my MBNA account.

In April of 2005, I purchased an automobile using a combination of revolving credit and an auto loan. Your card was instrumental in securing an approval for the auto loan because of loan-to-value restrictions: I charged the down payment of the vehicle to the card, and was immediately 77% utilized on the account; fortunately, the size of the down payment was sufficient for my local credit union to approve an auto loan.

I was surprised to receive a letter from MBNA stating that they were repricing the account two weeks after the purchase was made: The purchase APR on the account was increased three percentage points to 8.99% fixed from 5.90% fixed. In response, I paid the account in full and moved my spending to other accounts.

Ten subsequent requests for discounts to the "purchases" category have been declined over the eight-month period from 04/15/2005 through 12/10/2005. The most often-cited reason for denial of my request has been "8.99% is the lowest rate our bank has", and other responses to that effect. However, I do not believe this is accurate, since several carriers of your Merrill Lynch co-brand still enjoy a 5.90% fixed rate -- this is based on conversations with friends who are also MBNA cardholders.

Please restore the 5.90% fixed rate for purchases, balance transfers, and checks that I originally had.

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Re: Repriced account by geebee Posted Wed December 14, 2005 @ 3:06 PM I'm not understanding something here. You couldn't get a loan for the amount of the car because the loan was for more of the car's value so you put the balance on your credit card? This sounds like a bad idea if you ask me. Reply