Thursday, 15 October 2009
http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf
http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf
Friday, 7 August 2009
A chance for all bankrupts to change your life - Your help needed! - Page 2 - MoneySavingExpert.com Forums
A chance for all bankrupts to change your life - Your help needed! - Page 2 - MoneySavingExpert.com Forums: "Have done it! Is very easy and takes minutes"
http://www.writetothem.com/
http://www.writetothem.com/
A chance for all bankrupts to change your life - Your help needed! - Page 2 - MoneySavingExpert.com Forums
A chance for all bankrupts to change your life - Your help needed! - Page 2 - MoneySavingExpert.com Forums: "Have done it! Is very easy and takes minutes
This is my adaptation of your letter - anyone feel free to cut and paste!"
This is my adaptation of your letter - anyone feel free to cut and paste!"
Monday, 22 June 2009
BBC Panorama write off debt | Loophole clears couple’s debts | Write off illegal unfair loans | Consumer Credit Act 1974 « Write Off Credit Cards & Loans
BBC Panorama write off debt | Loophole clears couple’s debts | Write off illegal unfair loans | Consumer Credit Act 1974 « Write Off Credit Cards & Loans: "BBC Panorama write off debt | Loophole clears couple’s debts | Write off illegal unfair loans | Consumer Credit Act 1974"
How To Legally Write Off Credit Card Debt « Write Off Credit Cards & Loans
How To Legally Write Off Credit Card Debt « Write Off Credit Cards & Loans: "How To Legally Write Off Credit Card Debt"
Council Tax Rebanding: Lower your band and save £1,000s...
Council Tax Rebanding: Lower your band and save £1,000s...: "Council Tax Rebanding
Lower your band and save £1,000s"
Lower your band and save £1,000s"
http://www.entitledto.co.uk/
People across the UK are missing out on benefits and tax credits worth more than £8 billion a year.
Wednesday, 20 May 2009
What can I do if I experience Financial Difficulties?
What can I do if I experience Financial Difficulties?
We acknowledge that some of our customers, even when they borrow responsibly, can fall into financial difficulty when circumstances are out of control. At MBNA we are committed to helping our customers get out of debt as quickly as their circumstances allow and various repayment options can be discussed with our debt advisors on 0800 0280690
The Consumer Credit Counselling Service provide a free online tool, CCCS Debt Remedy that can tailor advice depending on your individual circumstances.
Alternatively, there are many non fee charging Debt Advisory Services to help you take control of your debt and arrange free payment plans with all your creditors.
| Consumer Credit Counselling Service www.cccs.co.uk Call free: 0800 138 1111 | National Debtline www.nationaldebtline.co.uk Call free: 0808 808 4000 | Citizens Advice Bureau www.nacab.org.uk |
| Pay Plan Kempton House Dysart Road Grantham Lincolnshire NG31 7LE www.payplan.com Call free: 0800 917 7823 | Debt Advisory Service - Scotland Head Office: Suite 201-203, Baltic Chambers 50 Wellington Street Glasgow G2 6HJ www.debtadvisoryservice.co.uk Call free: 0808 808 4000 | |
| If you want information regarding your credit file, you can contact: | ||
| Experian Ltd Consumer Help Service P.O. Box 8000 Nottingham NG80 7WF www.experian.co.uk Tel: 0844 481 8000 | Equifax Plc P.O. Box 1140 Bradford BD1 5US www.myequifax.co.uk Tel: 08700 100 583 | Callcredit Limited One Park Lane Leeds West Yorkshire LS3 1EP www.callcredit.co.uk Tel: 0113 244 1555 |
Wednesday, 6 May 2009
Egg hikes cash withdrawal fees by 66%
Egg customers who withdraw cash on their credit cards are in for a shock, as charges are set to soar by 66%.
Egg card: Cash withdrawal charges are on the up
Egg customers should use their credit cards with caution, as the minimum cash withdrawal fee will increase from £3 to £5 - or 3% whichever is greater - from 28 May.
The move by Egg is claimed to be designed to deter customers from making small cash withdrawals with their credit card, as this is often a clear sign of financial difficulty.
Louise Bond, at comparison site, uSwitch.com, says: 'The rationale for this change is reasonable. However, we strongly advise customers not to use this facility on any credit card unless they are really desperate for the cash.
'Interest is applied to credit card cash withdrawals from the day they are made and the APR is generally far higher than that applied to purchases.'
Credit card customers already pay £161m in interest making a total of 38m credit card cash withdrawals every year.
Research from uSwitch.com has shown that 7.3m, or 16% of credit card customers, use this facility around five times a year, making average withdrawals of just under £100 every time.
Previously this would have cost Egg customers £3 for each of these withdrawals, this will now increase to £5 - totalling £25 a year in withdrawal fees alone in a year.
http://www.thisismoney.co.uk/credit-and-loans/article.html?in_article_id=483081&in_page_id=9
Egg card: Cash withdrawal charges are on the up
Egg customers should use their credit cards with caution, as the minimum cash withdrawal fee will increase from £3 to £5 - or 3% whichever is greater - from 28 May.
The move by Egg is claimed to be designed to deter customers from making small cash withdrawals with their credit card, as this is often a clear sign of financial difficulty.
Louise Bond, at comparison site, uSwitch.com, says: 'The rationale for this change is reasonable. However, we strongly advise customers not to use this facility on any credit card unless they are really desperate for the cash.
'Interest is applied to credit card cash withdrawals from the day they are made and the APR is generally far higher than that applied to purchases.'
Credit card customers already pay £161m in interest making a total of 38m credit card cash withdrawals every year.
Research from uSwitch.com has shown that 7.3m, or 16% of credit card customers, use this facility around five times a year, making average withdrawals of just under £100 every time.
Previously this would have cost Egg customers £3 for each of these withdrawals, this will now increase to £5 - totalling £25 a year in withdrawal fees alone in a year.
http://www.thisismoney.co.uk/credit-and-loans/article.html?in_article_id=483081&in_page_id=9
10.2m pay credit card penalties
This is Money25 July 2007
One in four credit card holders has been made to pay a penalty fee in the past year, a survey has revealed.
An estimated 10.2m people paid more than £230m between them after being late with a monthly payment or going over their credit limit.
Financial website moneysupermarket.com, which conducted the survey, said that despite the high numbers caught out, only 12% of card holders would like to see penalty fees replaced with a set monthly or annual charge.
Rob Kenley, the website's head of credit cards, said: 'Penalty fees still affect a significant proportion of the population and providers are raking in some hefty cash, even after the Office of Fair Trading imposed a £12 cap.'
But he said the survey suggested consumers would not respond well to the idea of monthly or annual card fees. 'If providers were thinking about introducing them, they would have to offer cardholders much more than simply replacing penalty fees,' he said.
Longer 0% introductory offers or higher cashback offers could be a starting point.
Earlier this month, a report from moneyexpert.com suggested credit card customers had paid out nearly £50m to banks in missed payment fines in the past six months, even though card companies have slashed their penalty charges.
Up to 4.1m monthly card payments have been missed since the start of the year, equating to around 694,506 per month. Card companies charge £12 when a payment is missed, which is around half the level they used to charge following an Office of Fair Trading investigation.
And price comparison website uSwitch saidmillions of consumers face being in debt for up to 30 years if they make only the minimum repayments on their credit cards each month. It said 10% of cardholders, the equivalent of about 3.5m people, make only the minimum repayment each month. Most credit card companies set minimum monthly repayments at 2.6% of the outstanding balance, with 35 card providers setting them at just 2%.
http://www.thisismoney.co.uk/credit-and-loans/article.html?in_article_id=422705&in_page_id=9
One in four credit card holders has been made to pay a penalty fee in the past year, a survey has revealed.
An estimated 10.2m people paid more than £230m between them after being late with a monthly payment or going over their credit limit.
Financial website moneysupermarket.com, which conducted the survey, said that despite the high numbers caught out, only 12% of card holders would like to see penalty fees replaced with a set monthly or annual charge.
Rob Kenley, the website's head of credit cards, said: 'Penalty fees still affect a significant proportion of the population and providers are raking in some hefty cash, even after the Office of Fair Trading imposed a £12 cap.'
But he said the survey suggested consumers would not respond well to the idea of monthly or annual card fees. 'If providers were thinking about introducing them, they would have to offer cardholders much more than simply replacing penalty fees,' he said.
Longer 0% introductory offers or higher cashback offers could be a starting point.
Earlier this month, a report from moneyexpert.com suggested credit card customers had paid out nearly £50m to banks in missed payment fines in the past six months, even though card companies have slashed their penalty charges.
Up to 4.1m monthly card payments have been missed since the start of the year, equating to around 694,506 per month. Card companies charge £12 when a payment is missed, which is around half the level they used to charge following an Office of Fair Trading investigation.
And price comparison website uSwitch saidmillions of consumers face being in debt for up to 30 years if they make only the minimum repayments on their credit cards each month. It said 10% of cardholders, the equivalent of about 3.5m people, make only the minimum repayment each month. Most credit card companies set minimum monthly repayments at 2.6% of the outstanding balance, with 35 card providers setting them at just 2%.
http://www.thisismoney.co.uk/credit-and-loans/article.html?in_article_id=422705&in_page_id=9
Unethical Practice - Loan Account/Credit Card
Posted By: stien on 12/10/2004 Location: Colorado Springs, CO
After reading the other reviews regarding MBNA, it seems that this company has developed a pattern. I also agreed to terms and agreements over the phone with a customer representative and received by post a completely different agreement. When I telephoned MBNA, their response was that they sent me in writing the terms and agreement and I should have read and been more cognisant of their terms.
Unfortunately, I trusted MBNA to give me the correct information over the phone and not change the terms of agreement in writing. Silly me! MBNA definitely changed the terms of agreement in writing and apparently this is a patterned practice for this company. They really should be ashamed of themselves. The second MBNA representative that I spoke with agreed with me that I would have been better off keeping my two MBNA credit cards rather than consolidating them. Not only did MBNA increase the percentage rate that we were paying on the credit cards but they also charged $700 to consolidate the loans. If MBNA would like to repair the damage, I request that my $700 be refunded and my initial - agreed upon rate of 8.9% be instated.
http://www.my3cents.com/showReview.cgi?id=7878
After reading the other reviews regarding MBNA, it seems that this company has developed a pattern. I also agreed to terms and agreements over the phone with a customer representative and received by post a completely different agreement. When I telephoned MBNA, their response was that they sent me in writing the terms and agreement and I should have read and been more cognisant of their terms.
Unfortunately, I trusted MBNA to give me the correct information over the phone and not change the terms of agreement in writing. Silly me! MBNA definitely changed the terms of agreement in writing and apparently this is a patterned practice for this company. They really should be ashamed of themselves. The second MBNA representative that I spoke with agreed with me that I would have been better off keeping my two MBNA credit cards rather than consolidating them. Not only did MBNA increase the percentage rate that we were paying on the credit cards but they also charged $700 to consolidate the loans. If MBNA would like to repair the damage, I request that my $700 be refunded and my initial - agreed upon rate of 8.9% be instated.
http://www.my3cents.com/showReview.cgi?id=7878
MBNA: Financial Predator - Credit Cards/Line of Credit
Posted By: StayAwayFromMBNA
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.
http://www.my3cents.com/showReview.cgi?id=7894
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.
http://www.my3cents.com/showReview.cgi?id=7894
Fraud in a BIG WAY - Alleged
I received a "Clean Sweep" offer through the mail to pay off your high balance credit card debts with a very low interest rate in the range of about 4.99% to 6.99%. This bunch took my information over the phone and I was given a line of credit to payoff all my credit cards. Which, I done immediately.
I was working making $60,000 a year, until very suddenly I became disabled and I an now receiving Permanently Total Disability Payments each month. I explained that I needed to consolidate my debts in to one low monthly payment. I was told that my payment would be around $350.00 per month for 92 months. That was O.K. with me. However, when I got my first Statement, it showed a $690.00 transaction fee, my monthly payment was over 550.00 per month, and my interest rate was 54.99%. Needless to say I had a mini-heart attack and called them. They were very rude and acted liked I never talked to them and said I signed a loan application, which I never did. This was all done by phone. They sent me a copy of my application, and it was totally bogus. Nothing on that application even pertained to me and I never signed it. Now they have destroyed my perfect credit rating, and all I get when I call - is someone telling me that I am a liar and that they are going to sue me. I told them to bring it on, because I would love to show the Courts what kind of Fraud they are producing.
AZJEM (12/28/2004) I don't know what I can say that will help you, but I do agree MBNA is a total clip artist. I paid them in full, even though the next month they still added the percentage charge-o.k. I paid that then sent our two cards shred up in a million and one pieces. Terrible customer service (after they have your account). And I can't believe it would be legal to charge 56%. Hope someone can offer you some help with this. Good Luck!
I was working making $60,000 a year, until very suddenly I became disabled and I an now receiving Permanently Total Disability Payments each month. I explained that I needed to consolidate my debts in to one low monthly payment. I was told that my payment would be around $350.00 per month for 92 months. That was O.K. with me. However, when I got my first Statement, it showed a $690.00 transaction fee, my monthly payment was over 550.00 per month, and my interest rate was 54.99%. Needless to say I had a mini-heart attack and called them. They were very rude and acted liked I never talked to them and said I signed a loan application, which I never did. This was all done by phone. They sent me a copy of my application, and it was totally bogus. Nothing on that application even pertained to me and I never signed it. Now they have destroyed my perfect credit rating, and all I get when I call - is someone telling me that I am a liar and that they are going to sue me. I told them to bring it on, because I would love to show the Courts what kind of Fraud they are producing.
AZJEM (12/28/2004) I don't know what I can say that will help you, but I do agree MBNA is a total clip artist. I paid them in full, even though the next month they still added the percentage charge-o.k. I paid that then sent our two cards shred up in a million and one pieces. Terrible customer service (after they have your account). And I can't believe it would be legal to charge 56%. Hope someone can offer you some help with this. Good Luck!
Check your record
There are three credit reference agencies -Equifax, Experian and CallCredit - which hold information on you.
You have the right to see your record and put a notice of correction on your file against any inaccurate information. And notify the lender to get inaccuracies removed because other lenders will work on the basis you are guilty until proved innocent.
You can also put a note on your file stating you have no financial connection with someone else with a poor credit record who is linked to your address. Don't be scared by the threat of bailiffs. Money adviser John Kruse of Citizens Advice says: 'In most cases, bailiffs cannot come to your home until there has been a county court claim upheld against you.
'In reality, companies rarely go that far. Threats of legal action and bailiffs are just scare tactics.'
http://www.thisismoney.co.uk/credit-and-loans/article.html?in_article_id=425184&in_page_id=9
You have the right to see your record and put a notice of correction on your file against any inaccurate information. And notify the lender to get inaccuracies removed because other lenders will work on the basis you are guilty until proved innocent.
You can also put a note on your file stating you have no financial connection with someone else with a poor credit record who is linked to your address. Don't be scared by the threat of bailiffs. Money adviser John Kruse of Citizens Advice says: 'In most cases, bailiffs cannot come to your home until there has been a county court claim upheld against you.
'In reality, companies rarely go that far. Threats of legal action and bailiffs are just scare tactics.'
http://www.thisismoney.co.uk/credit-and-loans/article.html?in_article_id=425184&in_page_id=9
MBNA-The way the account has been handled
Liz Phillips, Daily Mail 10 October 2007Mature student Dee Da Silva, 39, (pictured, left, with son Aiden) has never had a late or missed payment on her Abbey credit card. But last month she received notification that her interest rate was doubling from 17.9% to 34.9%. Mrs Da Silva, from Marlow, Bucks, says: 'I pay the minimum by direct debit every month, so I can't miss a payment. I can't understand it. It is so unfair.' The Abbey card is run by MBNA, but it gave no clue why her rate has doubled. A spokesman for MBNA says: 'We regularly review individuals' credit card rates and manage them up and down. The way the account has been handled is just one of the factors we look at.'
Don't be an innocent credit crunch victim
Liz Phillips, Daily Mail 10 October 2007
Borrowers without a blemish on their credit records are being targeted in the credit crackdown. Some credit card companies are imposing punishing interest rate rises on those they believe might be on the verge of struggling.
Signs they look out for are making only the minimum repayments - even if they are on time - or having several credit cards. MBNA doubled the interest rate on the credit card of recently widowed pensioner Frances White, from 15.9% to 27.9% in July, even though she had always paid more than the minimum amount on time.
Mrs White, 71, from Upminster, Essex, queried the rate rise but in the meantime the interest charges meant she underpaid in August. As a result, MBNA refused to cut the rate because she was in arrears. She says: 'This doubled interest, coming at the same time as my husband died, is most distressing.'
It is a stark example of how even those with exemplary borrowing records can be targeted by lenders and find themselves in difficulties they never imagined. An MBNA spokesman gave no explanation for the increase, simply saying: 'We regularly review individual customers' interest rates and might adjust the pricing up or down accordingly.'
Once Money Mail intervened, MBNA did offer to cut the rate to 12.9% for six months. The credit crackdown means that anyone with a black mark on their credit record - no matter how tiny - could be shocked the next time they apply for a mortgage, personal loan or credit card because they might no longer be offered favourable rates.
Black marks resulting from missing repayments or being late with them can lead to huge hikes in interest rate. But you don't even need to make these slips to blight your record.
Borrowers without a blemish on their credit records are being targeted in the credit crackdown. Some credit card companies are imposing punishing interest rate rises on those they believe might be on the verge of struggling.
Signs they look out for are making only the minimum repayments - even if they are on time - or having several credit cards. MBNA doubled the interest rate on the credit card of recently widowed pensioner Frances White, from 15.9% to 27.9% in July, even though she had always paid more than the minimum amount on time.
Mrs White, 71, from Upminster, Essex, queried the rate rise but in the meantime the interest charges meant she underpaid in August. As a result, MBNA refused to cut the rate because she was in arrears. She says: 'This doubled interest, coming at the same time as my husband died, is most distressing.'
It is a stark example of how even those with exemplary borrowing records can be targeted by lenders and find themselves in difficulties they never imagined. An MBNA spokesman gave no explanation for the increase, simply saying: 'We regularly review individual customers' interest rates and might adjust the pricing up or down accordingly.'
Once Money Mail intervened, MBNA did offer to cut the rate to 12.9% for six months. The credit crackdown means that anyone with a black mark on their credit record - no matter how tiny - could be shocked the next time they apply for a mortgage, personal loan or credit card because they might no longer be offered favourable rates.
Black marks resulting from missing repayments or being late with them can lead to huge hikes in interest rate. But you don't even need to make these slips to blight your record.
MBNA RUINED MY PERFECT CREDIT - MICROCENTER CREDIT CARD
I purchased a computer from Microcenter with the incentive to save $100 by signing up for their credit card. For six months, I never received a statement and had no idea whom to call. The receipts I have from Microcenter did not mention MBNA or any contacts regarding my account. After six months, I received a nasty phone call from MBNA threatening because I haven't made a payment.
They had already ruined my credit before ever trying to contact me. I offered to pay in full if they send me a statement. The MBNA rep wanted me to give my checking account number over the phone and I refused and still insisted that they send me a statement and I'll pay in full. I received the statement two weeks later along with another nasty phone call. Since then, MBNA has cashed my check, closed this account, and reported me as a bad debt to all the credit companies. It was MBNA's fault because their rep typo'd my address incorrectly. Now my credit is ruined forever
http://www.my3cents.com/showReview.cgi?id=8430
They had already ruined my credit before ever trying to contact me. I offered to pay in full if they send me a statement. The MBNA rep wanted me to give my checking account number over the phone and I refused and still insisted that they send me a statement and I'll pay in full. I received the statement two weeks later along with another nasty phone call. Since then, MBNA has cashed my check, closed this account, and reported me as a bad debt to all the credit companies. It was MBNA's fault because their rep typo'd my address incorrectly. Now my credit is ruined forever
http://www.my3cents.com/showReview.cgi?id=8430
Deceptive Loan Practices - Credit
Company MBNA AMERICA Address: Nationwide, U.S.A. Phone Number: 877-800-0050 Fax: I am submidting this complaint on March 20, 2005 because MBNA continues to be a company that will do everything to anyone in the name of profit. I know there are many many people with like experiences. See also "RIP-OFFreport.com" Called 10/30/03 "Lucy" Because of my delayed disability claim, I asked if a interest rate reduction would be possible.
"If I qualified" and I did interest rate reduced from 19.98 to 14.98% I had to agree to increased my monthly payments (and that had to be made at once) and the plan could take up to two months. Next statement the interest charge is 24.98% Was told, when I called, nothing I could do about it. It would stay 24.98% until new plan but couldn't tell me when that was going to be. I had account for years, never been late, always paid more than min. due. I had to refinance my house to pay MBNA off but the problems did not stop there Paid off account in full but MBNA deducted another payment from my bank for $348.00 on the 3rd of Jan 2004. (even after account had been paid in full weeks before) Called three times to get refund. First time I was told that it was my fault that they continued to make automatic payments. Contact on the 15th of Jan. was told check was "cut" on 7th and mailed on the 9th. Now after my mail for the 15th, no check. Would never, never do business with MBNA America. I have filed complaint with Office of the Comptroller of the Currency Customer Assistance Group 1301 McKinnery Street, Suite 3450 Houston TX 77010-9050 Fax 1-713-336-4301 complaint form at http://www.occ.treas.gov/customer.htm James Olivet, Michigan U.S.A.
http://www.my3cents.com/showReview.cgi?id=9059
"If I qualified" and I did interest rate reduced from 19.98 to 14.98% I had to agree to increased my monthly payments (and that had to be made at once) and the plan could take up to two months. Next statement the interest charge is 24.98% Was told, when I called, nothing I could do about it. It would stay 24.98% until new plan but couldn't tell me when that was going to be. I had account for years, never been late, always paid more than min. due. I had to refinance my house to pay MBNA off but the problems did not stop there Paid off account in full but MBNA deducted another payment from my bank for $348.00 on the 3rd of Jan 2004. (even after account had been paid in full weeks before) Called three times to get refund. First time I was told that it was my fault that they continued to make automatic payments. Contact on the 15th of Jan. was told check was "cut" on 7th and mailed on the 9th. Now after my mail for the 15th, no check. Would never, never do business with MBNA America. I have filed complaint with Office of the Comptroller of the Currency Customer Assistance Group 1301 McKinnery Street, Suite 3450 Houston TX 77010-9050 Fax 1-713-336-4301 complaint form at http://www.occ.treas.gov/customer.htm James Olivet, Michigan U.S.A.
http://www.my3cents.com/showReview.cgi?id=9059
MBNA ruined my excellent credit rating - Ruined my excellent credit rating
Several years ago, MBNA was a credit card company I would have recommended to anyone. They lived up to their promises, looked out after my activity and even took care of a fraudulent charge that slipped through. But 2 years ago, I received an offer from them to do a balance transfer for 3.99% until the balance was paid off.
I transferred approximately $7,000.00 as was paying close to triple what they wanted as a minimum payment so I could pay the balances off. Several months into my payments, I noticed that my balance didn't seem to be going down, when I checked the interest rate, I was being assessed a rate of 24.99% and immediately went to pull the past statements and found that I was never given the offer I was promised. I had never been late and paid way more than their minimum payments and had been with them since 1995. When I phoned to inquire about this problem, I was met with rudeness, an explanation from one representative of they didn't know why and then was transfered to another hateful person who in so many words told me that there was no reason in particular other than that they could change my interest rates at any time for any reason. I told the representative that I wanted to place my account into dispute and even wrote correspondences to MBNA regarding same and went to making minimum payments only till my credit limit of $12K+ was set to $0, late fees, over limit fees were assessed, and I stopped!! Next thing I knew, I was being served with an Arbitration lawsuit that was stated to be apart of my credit application agreement, but never was. My attorney figured the interest on the $7,000.00 along with my payments and I had my balance down under $4,000.00 when this blew up. MBNA now has the balance exceeding $15,000.00. I have since had my credit rating ruined, other accounts canceled because of them and am not facing a Bankruptcy Filing to just get out from under their upcoming Judgments. Stay away from these people.
They are dangerous to your health and your credit rating! Believe me, I know, my rating was at 700.
http://www.my3cents.com/showReview.cgi?id=9630
I transferred approximately $7,000.00 as was paying close to triple what they wanted as a minimum payment so I could pay the balances off. Several months into my payments, I noticed that my balance didn't seem to be going down, when I checked the interest rate, I was being assessed a rate of 24.99% and immediately went to pull the past statements and found that I was never given the offer I was promised. I had never been late and paid way more than their minimum payments and had been with them since 1995. When I phoned to inquire about this problem, I was met with rudeness, an explanation from one representative of they didn't know why and then was transfered to another hateful person who in so many words told me that there was no reason in particular other than that they could change my interest rates at any time for any reason. I told the representative that I wanted to place my account into dispute and even wrote correspondences to MBNA regarding same and went to making minimum payments only till my credit limit of $12K+ was set to $0, late fees, over limit fees were assessed, and I stopped!! Next thing I knew, I was being served with an Arbitration lawsuit that was stated to be apart of my credit application agreement, but never was. My attorney figured the interest on the $7,000.00 along with my payments and I had my balance down under $4,000.00 when this blew up. MBNA now has the balance exceeding $15,000.00. I have since had my credit rating ruined, other accounts canceled because of them and am not facing a Bankruptcy Filing to just get out from under their upcoming Judgments. Stay away from these people.
They are dangerous to your health and your credit rating! Believe me, I know, my rating was at 700.
http://www.my3cents.com/showReview.cgi?id=9630
Doubling Interest Rates - Credit Account
I have had an MBNA Credit Card for 5 years. I always pay on time and pay more than is required. So how am I rewarded..my interest rate was doubled without an explanation. When I wrote to the company and asked why and pleaed to lower the rate, they responded my raising it 1/4% more and wrote me a letter saying their review determined my APR will be maintained..this was before they raised it the additional 1/4 percent.
Then they went on to say one of my benefits with the card was "24-hour customer satisfaction." ha ha! Interest rates jump from 10.99% to 20.74% in two months. Plus they added a flyer in my bill to consolidate bills with a 3.99% interest. Anyone reading this, please BEWARE OF ANY DEALINGS with MBNA..They treat you like crap and LIE to you.
http://www.my3cents.com/showReview.cgi?id=9642
Then they went on to say one of my benefits with the card was "24-hour customer satisfaction." ha ha! Interest rates jump from 10.99% to 20.74% in two months. Plus they added a flyer in my bill to consolidate bills with a 3.99% interest. Anyone reading this, please BEWARE OF ANY DEALINGS with MBNA..They treat you like crap and LIE to you.
http://www.my3cents.com/showReview.cgi?id=9642
MBNA Canada Interest Rate - Master Card
More MBNA Reviews:
Reviews by product/serviceCredit Card Practices (13)Line Of Credit (2)Master Card (2)Platinum Plus Mastercard (2)
Got something to say? Help other consumers by sharing your experiences on My3cents...Without my knowledge, MBNA Canada went ahead and raised my interest rate to 24.% then dropped it to 22.98%. I was appauled by this increase and I called them. There response to me was, that because I had other debts they had the right to do a major increase to my interest rate, on a pre-existing amount of money already owing.
I asked them how they can do that, they said they just can. They said I should of read the fine print a little closer and they would gladly send me it to read again. When I originally spoke ewith them in regards to the application they had sent me, without asking for it. They supposedly told me everything about it. They failed to mention that they could increase my interest when ever they wanted to. I am so angry!!! On one hand they tell me they raised my interest because I have other outstanding debts and this was a way to insure they get their money, while on the other hand they keep sending me these payment holiday invoices + interest. How worried can they be about getting their money when they offer me these free months with interest! I pay to them 124.00 per month, 114.00 of that is interest. IF I could just pay them off I would! All they care about is the money and they will knowingly lie to you by not giving you all the necessary information! Very deceptive! IF anyone knows of any legal action I can take I would really appreciate it! thanks for reading this Rick red1@rogers.com CANADA
http://www.my3cents.com/showReview.cgi?id=10492
Reviews by product/serviceCredit Card Practices (13)Line Of Credit (2)Master Card (2)Platinum Plus Mastercard (2)
Got something to say? Help other consumers by sharing your experiences on My3cents...Without my knowledge, MBNA Canada went ahead and raised my interest rate to 24.% then dropped it to 22.98%. I was appauled by this increase and I called them. There response to me was, that because I had other debts they had the right to do a major increase to my interest rate, on a pre-existing amount of money already owing.
I asked them how they can do that, they said they just can. They said I should of read the fine print a little closer and they would gladly send me it to read again. When I originally spoke ewith them in regards to the application they had sent me, without asking for it. They supposedly told me everything about it. They failed to mention that they could increase my interest when ever they wanted to. I am so angry!!! On one hand they tell me they raised my interest because I have other outstanding debts and this was a way to insure they get their money, while on the other hand they keep sending me these payment holiday invoices + interest. How worried can they be about getting their money when they offer me these free months with interest! I pay to them 124.00 per month, 114.00 of that is interest. IF I could just pay them off I would! All they care about is the money and they will knowingly lie to you by not giving you all the necessary information! Very deceptive! IF anyone knows of any legal action I can take I would really appreciate it! thanks for reading this Rick red1@rogers.com CANADA
http://www.my3cents.com/showReview.cgi?id=10492
Worst Credit Card!!
DON'T do business with this company (MBNA). I have been a cusotmer for over 15 years. My credit rating is in the high 700's, I have never had any late payments, and I pay my account in full every month. The interest rate is still incredibly high. Why would anyone want to do business with this company? When they lose all their customers and can't pay their own bills, I hope their creditors charge them a 99.9% interest rate. This company should be shut down!!!
http://www.my3cents.com/showReview.cgi?id=11615
http://www.my3cents.com/showReview.cgi?id=11615
MBNA Complaint
I've been a member of MBNA for a few years, with no problems. The past few months my statements have been arriving later and later in the mail. I called their service line and they "claim" my statements are sent out the day after my monthly statement closes. I would believe this once, but not four months in a row.
For example, my February statement "closed" on Feb 1, was claimed to be sent on Feb 2 (although the statements have no postmark so you can't really tell), and arrived Feb 17. My statment was due on Feb 21. If you look at a calendar you'll see I have two business days to mail in my check. I've never been late on a payment and believe they are trying to *make* me late by delaying my statements. I switched to a pay online service, and hopefully they will not "delay" my automatic payments there. Don't trust MBNA.
http://www.my3cents.com/showReview.cgi?id=12370
For example, my February statement "closed" on Feb 1, was claimed to be sent on Feb 2 (although the statements have no postmark so you can't really tell), and arrived Feb 17. My statment was due on Feb 21. If you look at a calendar you'll see I have two business days to mail in my check. I've never been late on a payment and believe they are trying to *make* me late by delaying my statements. I switched to a pay online service, and hopefully they will not "delay" my automatic payments there. Don't trust MBNA.
http://www.my3cents.com/showReview.cgi?id=12370
MBNA Informative
I USED TO WORK AT MBNA - Credit Card
Posted By: pdmasta on 3/15/2006
I used to be employed with MBNA back in 2005. I was in their elite sales team counter offer. Basically our job was to sell as much as possible, as fast as possible, and if we were good enough, smart enough, sneaky enough, we wouldn't have to do it all legally. CRC regulations said that we were able to do .
this, this and that. MBNA pretended to care, pretended that we were all be listened too, pretended that if we didn't do exactly what the law required their would be swift punishment. Well, that didn't happen. You see we used to sell insurance as well as loans. We had a bunch of really good sellers on the team, one guy in particular used to sell 10-20 p3's a day (thats what we used to call them) I remember everyone wanted to know how the hell the top sellers sold their stuff, what did they say? what did they do? You'd think the entire management team would call a meeting and go over EXACTLY what was done, exactly what was said, no. Never happened, because it was illegal. Things that were not mentioned, say specific fees or charges for a loan or particular insurance were not mentioned to the customer. Perhaps the customer was listening, but the sales rep was speaking too fast, or just as the IMPORTANT parts came up, he would hold down mute for a fraction of a second. Everything was monitured, but they couldn't tell when you had MUTE pressed down. There were a lot of tricks, a lot of lies. People would complain EVERYDAY that they paid ONTIME. MBNA were very very smart, never told anyone it took 2-5 business days to get the money, and mbna made damn sure it took 5 days to process ANYTHING. They wanted everyone to default on their payments, everyone to pay higher interest. I know for a certain fact that MBNA would not correct their phone list if a person had moved, I know for a fact that people were called every week, every day for months, for years even.
I know that deceased customers would still get calls. Their widows answering the phone for the 35th time and telling us that their husband died. MBNA was ruthless. And did they reward you for all the hard work? no! they gave us chocolate bars for more energy. They'd demand overtime, overtime overtime. Why aren't you working this saturday? I got a family...? DOESN'T MATTER! NO FAMILIES, NO OBLIGATIONS, ! They didn't want you to leave. I think one of the worst things MBNA did was sell to people who really didn't speak enlish that well. We were all forced to bully our way through sales, even if the person didn't understand what you were saying, just keep pounding away and they'll eventually fold, and take the money. Directors Club. What a joke. This was MBNA's "idea" to reward top sellers, problem was, the 'leads' or 'call lists' that the top sellers would use would be shared by the lower of the sales groups. It tainted the pool, so when 'some' of the elite sellers would be asked to go on 'inbound' calls, they had the clear advantage. Their time on a seperate lead system was not compensated for, nothing was done. People were crushed in a day, in a few days when their rivals would go on 'incoming' In my opinion, MBNA is the worst financial instituition I have ever worked at. Thank god for HSBC. And one last thing about mbna that was idiotic, the men had to wear a STRICT dress code, pants, tie, you got the idea, the women? anything they DAMNED WANT! Low cut shirts, I mean so low it was REDICULOUS, I thought half the women were going to the club on their lunch breaks, oh god how pathetic MBNA was. I am so glad I left. ps. never work, never deal, never talk to mbna, because more than likely you are getting SCREWED!
http://www.my3cents.com
Posted By: pdmasta on 3/15/2006
I used to be employed with MBNA back in 2005. I was in their elite sales team counter offer. Basically our job was to sell as much as possible, as fast as possible, and if we were good enough, smart enough, sneaky enough, we wouldn't have to do it all legally. CRC regulations said that we were able to do .
this, this and that. MBNA pretended to care, pretended that we were all be listened too, pretended that if we didn't do exactly what the law required their would be swift punishment. Well, that didn't happen. You see we used to sell insurance as well as loans. We had a bunch of really good sellers on the team, one guy in particular used to sell 10-20 p3's a day (thats what we used to call them) I remember everyone wanted to know how the hell the top sellers sold their stuff, what did they say? what did they do? You'd think the entire management team would call a meeting and go over EXACTLY what was done, exactly what was said, no. Never happened, because it was illegal. Things that were not mentioned, say specific fees or charges for a loan or particular insurance were not mentioned to the customer. Perhaps the customer was listening, but the sales rep was speaking too fast, or just as the IMPORTANT parts came up, he would hold down mute for a fraction of a second. Everything was monitured, but they couldn't tell when you had MUTE pressed down. There were a lot of tricks, a lot of lies. People would complain EVERYDAY that they paid ONTIME. MBNA were very very smart, never told anyone it took 2-5 business days to get the money, and mbna made damn sure it took 5 days to process ANYTHING. They wanted everyone to default on their payments, everyone to pay higher interest. I know for a certain fact that MBNA would not correct their phone list if a person had moved, I know for a fact that people were called every week, every day for months, for years even.
I know that deceased customers would still get calls. Their widows answering the phone for the 35th time and telling us that their husband died. MBNA was ruthless. And did they reward you for all the hard work? no! they gave us chocolate bars for more energy. They'd demand overtime, overtime overtime. Why aren't you working this saturday? I got a family...? DOESN'T MATTER! NO FAMILIES, NO OBLIGATIONS, ! They didn't want you to leave. I think one of the worst things MBNA did was sell to people who really didn't speak enlish that well. We were all forced to bully our way through sales, even if the person didn't understand what you were saying, just keep pounding away and they'll eventually fold, and take the money. Directors Club. What a joke. This was MBNA's "idea" to reward top sellers, problem was, the 'leads' or 'call lists' that the top sellers would use would be shared by the lower of the sales groups. It tainted the pool, so when 'some' of the elite sellers would be asked to go on 'inbound' calls, they had the clear advantage. Their time on a seperate lead system was not compensated for, nothing was done. People were crushed in a day, in a few days when their rivals would go on 'incoming' In my opinion, MBNA is the worst financial instituition I have ever worked at. Thank god for HSBC. And one last thing about mbna that was idiotic, the men had to wear a STRICT dress code, pants, tie, you got the idea, the women? anything they DAMNED WANT! Low cut shirts, I mean so low it was REDICULOUS, I thought half the women were going to the club on their lunch breaks, oh god how pathetic MBNA was. I am so glad I left. ps. never work, never deal, never talk to mbna, because more than likely you are getting SCREWED!
http://www.my3cents.com
MBNA according to WIKI
MBNA Corporation was a bank holding company and parent company of wholly owned subsidiary MBNA America Bank, N.A., headquartered in Wilmington, Delaware, prior to being acquired by Bank of America in 2005. It was the world's largest independent credit card issuer, specializing in affinity cards.[1]
MBNA was founded in 1982 as Maryland Bank, N.A., a subsidiary of Maryland National Bank. The name MBNA is an initialism that was derived as an abbreviation or acronym of Maryland Bank, National Association. In 1989, Maryland Bank was renamed MBNA America Bank. MBNA Corp. spun off from Maryland National and became an independent company in 1991.[2]
MBNA was founded in 1982 as Maryland Bank, N.A., a subsidiary of Maryland National Bank. The name MBNA is an initialism that was derived as an abbreviation or acronym of Maryland Bank, National Association. In 1989, Maryland Bank was renamed MBNA America Bank. MBNA Corp. spun off from Maryland National and became an independent company in 1991.[2]
[edit] Mergers and acquisitions
On June 30, 2005 MBNA announced that it was being acquired by Bank of America for stock and cash totalling more than $35 billion. The deal was closed on January 1, 2006. The acquisition resulted in MBNA being re-named to Bank of America Card Services while still based in Delaware. For the first part of 2006, MBNA still issued credit cards under its own name associated with Mastercard, VISA, and American Express, but by the second half of 2006, all card products were re-branded as Bank of America.
At the same time in June 2005, MBNA bought Loans.co.uk (LCUK), then the UK's leading finance broker. Although figures were never released, various media outlets including newspapers in Watford, Hertfordshire where Loans.co.uk head office is based (they have a call centre in Preston, Lancashire), reported the deal to founders David Cowham and Steve Hayes being worth £100m.[3] MBNA/Bank of America have since decided to close Loans.co.uk due to the current market.
On January 1, 2006, MBNA merged with and into Bank of America. MBNA America Bank, National Association, (MBNA) then became a wholly-owned subsidiary of Bank of America. On June 10, 2006, MBNA changed its name to FIA Card Services, National Association (FIA). On October 20, 2006, Bank of America, National Association (USA), a subsidiary of Bank of America Corporation, merged with and into FIA.[4]
It should be noted that in Canada and Europe the MBNA name is retained. MBNA Europe headquarters is in Chester, England. MBNA Canada's headquarters are located in Ottawa, Ontario. In 2007, the Canadian division was named one of Canada's Top 100 Employers.[5]
This purchase was a reunion of sorts. In 1993, NationsBank bought MNC Financial (whose credit card division was spun off years earlier to become MBNA). Five years later, the Bank of America that exists today was the result of the merger between the San Francisco-based Bank of America and the Charlotte-based NationsBank. In 2005, with Bank of America buying MBNA, it is in effect reuniting MNC Financial's credit card portfolio to its original banking assets and combining the Bank of America credit card portfolio with MBNA's.
MBNA was founded in 1982 by a group of MNC Financial executives headed by Charles Cawley. Its first office was housed in a converted A&P supermarket in Ogletown, Delaware.[6] Until his recent death, Cleveland Browns owner Al Lerner served as Chairman of the Board.
The company, which has operations throughout the United States, Canada, Ireland, Spain, and the United Kingdom, also provided retail deposit accounts, consumer loans, and insurance products.
Employing more than 25,800 people around the world at the time of the merger with Bank of America, MBNA owned or managed more than $122.5 billion in outstanding consumer credit loans. Most of this loan debt was held in securitized portfolios that had been sold to other entities such as insurance companies and pension funds. MBNA virtually invented the process for securitizing credit card debt and this process contributed significantly to the fast growth of the company. It allowed for increasing the amount loaned without having to acquire matching assets to offset the loans.
[edit] MBNA History
Charles Cawley founded MBNA in 1982. The small bank, based in a Newark, Delaware supermarket, was formed as the credit card subsidiary of MNC Financial, a regional bank holding company headquartered in Baltimore, Maryland. The credit card industry was growing rapidly at the time, and Cawley was eager to expand the enterprise. Rather than pursuing the same strategies as his competitors, though, Cawley was looking for a marketing strategy that would separate his product from the homogenous horde of credit card lenders that competed mostly on price.
In 1983 Cawley approached his alma mater, Georgetown University in Washington, D.C., about partnering with him. His idea was to get the Georgetown University Alumni Association to endorse a credit card that would be offered exclusively to its members and generate a royalty or percentage of all revenues derived from the cards. The enticement for cardholders was that their use of the card benefited the alma mater, and that the card displayed their affiliation with Georgetown. The alumni association agreed to the project, and Cawley's first direct mailing effort was a hit. In addition to signing up an unusually large percentage of its prospects, MBNA benefited from the overall credit quality of its new customers, who were categorized generally as having relatively high income and education levels, thereby resulting in lower delinquency in charge-off levels.
As a result of his success with Georgetown, Cawley was convinced that he was on to something. By issuing 'affinity' cards and focusing on customer service, MBNA added value to an otherwise commodity-like service. He realized that if he could duplicate the results working with other groups, he could substantially increase MBNA's profit margins by capturing a more upscale and, therefore, less risky and higher spending segment of the market. Significantly, marketing costs per account could be greatly reduced because the response rate of direct sales efforts would be much higher than the industry average. Indeed, other credit card companies at the time often resorted to mass mailings targeted to broad groups identified by zip code or income level. In contrast, MBNA's prospects were motivated to review the credit card offer simply because of their affiliation with the group sponsoring the card.
Cawley next succeeded in getting the American Dental Association to sponsor an affinity card, and he followed that program with an affinity card for the Aircraft Owners and Pilots Association. Both efforts were successful. Throughout the mid-1980s Cawley aggressively approached new partners, focusing on various clubs and associations with an upscale membership. By 1985, in fact, MBNA was managing more than $1 billion in outstanding loans, compared with just $250 million going into 1983. MBNA's net income surged to $67 million in 1986 as outstanding credit vaulted to the $2 billion mark. Revenues and profits continued to surge as MBNA added affinity cards for major groups like the Sierra Club, Association of Trial Lawyers of America, the University of Texas, and National Education Association.
MBNA sustained its swift growth rate during the middle and late 1980s by scouting out upscale groups like college alumni associations and professional societies. After it selected an organization, it would offer future royalties in exchange for the group's membership list and permission to use its name and letterhead in direct-advertising efforts. By the early 1990s some groups were generating hundreds of thousands of dollars annually as a result of credit purchases under such agreements. For example, the Sierra Club arranged to receive one half of one percent of every charge made by its group members. MBNA had succeeded in signing up 45,000 of the environmental group's members by 1994, bringing more than $400,000 to the Club's coffers annually.
Although Cawley's strategy was unique for the early 1980s, by the mid-1980s other credit card companies were employing similar tactics. Nevertheless, MBNA continued to boost market share. Steady gains were in large part the result of fruitful marketing programs. MBNA marketers regularly solicited prospective groups with phone calls and by attending trade shows. Once they had the accounts, they utilized aggressive telemarketing and direct mail techniques to constantly boost the sizes of the accounts. For example, the Penn State Alumni Association entered into an affinity card agreement during the mid-1980s with a local bank, which succeeded in signing 15,000 members to the card. MBNA took the account over in 1989 and proceeded to boost membership to more than 120,000 within four years.
MBNA maintained its high-quality customer base by relying on credit reports to identify the most affluent and responsible customers. The strength of its credit base was reflected in its extremely low percentage of uncollectible loans, which was well below the industry average. Once it got the customers, it focused on keeping them with good service. For example, MBNA was the first credit card issuer to offer 24-hour-a-day service to all of its customers, and its phones were answered by people rather than by machines. In addition, people, rather than computer software, also reviewed individual account applications.
As MBNA's accounts swelled, so did its profits. By 1987 MBNA was managing more than $3 billion in credit card loans and netting a healthy $75 million annually in income. Managed loans surpassed $4 billion and then $5 billion in 1988 and 1989, as profits ballooned to more than $100 million annually. By 1990, MBNA was managing about $8 billion in credit card loans and pulling down nearly $130 million in profit. Those figures reflected an annual growth rate of more than 17 percent between 1987 and 1990. MBNA had become the largest single issuer of gold MasterCards and the fourth biggest provider of premium Visa cards. Its gold cards, in fact, made up about 42 percent of its accounts and were responsible for nearly 60 percent of MBNA's outstanding loan balances. Going into 1991, MBNA was marketing affinity cards for about 1,400 groups, including 223 medical and 70 attorney associations.
MBNA's rampant growth during the late 1980s mimicked the gains of its corporate parent, MNC. MNC invested heavily in real estate during the period and enjoyed solid profits. Unfortunately, the commercial real estate market collapsed before the end of the decade. By 1990, MNC, swimming in red ink, was desperate for cash. After losing more than $240 million during the first three quarters of 1990, MNC put its crown jewel, MBNA, on the auction block. Several credit card companies inquired, including Sears' Discover Card unit, but they balked at the $1.1 billion price and waited to see if the desperate MNC would go lower. Instead, MNC spun off MBNA in January 1991 in a public stock offering that raised about $955 million. The offering took place just two weeks before MNC's deadline to pay a $271 million debt.
Among the big winners of the MBNA spin-off was Alfred Lerner, a magnate with a personal worth estimated at $600 million at the time. Lerner was a major MNC stockholder. He had sold his bank, Equitable Bancorporation, to MNC in 1990 in exchange for MNC stock. Within weeks after the sale, however, MNC was drowning in real estate losses. Lerner was called in to run the bank, and he made the decision to sell MBNA. Shortly after the public stock offering, MBNA's stock price soared, and Lerner realized more than enough profit from his MBNA shares to offset his losses from his ownership in MNC. Lerner, who still owned about ten percent of MBNA in the early 1990s, became CEO of the newly formed MBNA Corporation. Still, Cawley, as president, continued to run the company.
By the early 1990s, MBNA's work force had grown to more than 5,000. To house its thriving operations, MBNA developed new facilities, including several important new regional marketing centers in Atlanta, Dallas, Cleveland, and Maine. From those facilities, several hundred representatives would conduct direct-marketing campaigns throughout their region and also provide service and information-processing functions.
The Northeast Regional Marketing Center in Camden, Maine, was representative of the marketing centers, and it also marked a tie to Cawley's past. Cawley's grandfather had once operated dress factories in Camden and adjacent Belfast, and Cawley was familiar with the area because he had summered nearby at his family's Lincolnville Beach estate. By the time the facility was completed in 1993, it was housing 250 people, and within two years MBNA had boosted that number to 600 and was planning further expansion in the area.
Despite the U.S. economic downturn of the late 1980s and early 1990s, MBNA continued to advance throughout the early 1990s. Managed loans nearly topped the $10 million mark in 1992 as MBNA's net income clambered to an impressive $170 million. By 1992, one-third of all U.S. doctors and about 20 percent of all attorneys were carrying MBNA credit cards, and their accounts were proving to be surprisingly profitable. Indeed, some analysts had questioned the wisdom of marketing credit cards to high-income individuals, few of whom would be expected to keep a running balance at high credit card interest rates. The average annual income of MBNA's cardholders in 1992 was an industry high of $54,000. However, MBNA's typical customer kept a running balance (at an average interest rate of 17.3 percent) of $2,200, about 35 percent higher than the industry average. By 1995, the customers' average annual income had risen to $59,000 and they were carrying an average balance of $2,886 (at an average interest rate of 16.4 percent).
Furthermore, MBNA charged its customers annual card fees of $20 to $40. Despite a flurry of new competition in the credit card industry, though, MBNA's affinity strategy allowed it to continue to successfully charge fees while many competitors dropped fees or slashed interest rate charges. MBNA also profited by selling much of its receivables forward at a fixed rate, a practice that essentially allowed the company to finance its portfolio at relatively low interest rates. Although that strategy left MBNA vulnerable to rising short-term interest rates, it paid off big during the early 1990s when rates were depressed.
MBNA's strategy was to sell to people with a common interest. In addition to the organizations and financial institutions that endorsed the company's products, MBNA began looking for 'created affinities.' For instance, it began offering cards displaying family coats-of-arms, as well as cards picturing regional landmarks to people proud of their home towns or states. By the mid-1990s, it was marketing to fans of nearly 200 different professional sports organizations, including National Football League teams, motor sports fans, and teams in every other major sport.
In 1995, MBNA moved its headquarters from a suburban location to Rodney Square in downtown Wilmington. This investment was credited with help to revive the downtown real estate market.
The neutrality of this section is disputed. Please see the discussion on the talk page. Please do not remove this message until the dispute is resolved. (October 2008)
MBNA focused its hiring practices on recruiting the best and brightest people. Many of the Customer Satisfaction Specialists handling incoming phone calls were college graduates. Whereas most other banks will hire practically anyone who shows up, MBNA knew that the difference was the people it hired. MBNA specialists were paid above average salaries and were paid additional incentives for going above and beyond what was expected of them. There was usually plenty of overtime, and there were also cash bonuses for working overtime during high call volumes. It was not uncommon for a phone representative to make in excess of $40,000 a year.
MBNA people dressed like professionals. Men were required to wear a suit and tie and dress shoes. Women had similar dress standards. MBNA focused a great deal on appearance. MBNA buildings were immaculate on the inside and outside. Many of the buildings were adorned with classic cars from Charles Cawley's personal collection, including a Duesenberg.
Because of MBNA's efficient financing strategies, marketing tactics, and customer service, profits surged going into the mid-1990s. Managed loans jumped to $12.4 billion in 1993 as net income topped $200 million. By 1994, MBNA had issued more than 14 million cards and was partnering with more than 3,600 different organizations, including the Telephone Pioneers of America, American Legion, and more than 400 universities and colleges. Managed loans grew to nearly $19 billion by the end of 1994, and the credit quality of its accounts was still much better than the industry norm. MBNA began to augment its operations in 1993 with home equity loans offered through its subsidiary, MBNA Consumer Services, Inc. It also launched initiatives overseas: it started in the United Kingdom with an affinity card for members of the Rolls-Royce Enthusiasts' Club.
MBNA continued to strengthen operations and grow its credit card business in the latter half of the decade. The company added consumer retail loans to the list of offerings provided by MBNA Consumer Services in 1996, thus allowing customers to finance costly purchases such as computers. Also that year the firm established the MBNA Insurance Services division to offer credit-related insurance, a service the company had offered since 1987. In 1997 MBNA Insurance Services began to market property and casualty insurance, primarily auto, as well as health and life insurance products. In 1998 MBNA established MBNA Canada Bank and began marketing credit cards to Canadian consumers.
In the late 1990s MBNA grew not only through credit card growth but also through acquisitions and partnerships. In 1997 MBNA purchased the credit card operations of Fidelity Trust Company, a subsidiary of Fidelity Investments. The acquisition included about 300,000 credit card accounts and $450 million in assets. In 1998 alone MBNA completed 25 acquisitions, including the acquisition of the credit card operations of PNC Bank Corp. in December for about $2.9 billion. Ventures the following year included a partnership with CCB Financial Corp., under which MBNA bought $150 million from CCB banks located in the southeastern United States, and the acquisition of the credit card portfolio of SunTrust Banks Inc. The estimated $1.5 billion purchase included the outstanding loan balances from about 1.4 million credit card accounts.
Hoping to capitalize on the intensive growth of the Internet, MBNA brokered deals with Internet companies in the late 1990s. MBNA's agreement to issue an affinity credit card with EarthWeb, an Internet-based company that sold business supplies online, was promoted by MBNA and EarthWeb as 'one of the first affinity credit card programs in the business-to-business Internet space,' according to Asset Sales Report. MBNA also entered into a marketing partnership with Infoseek Corporation, which operated the GO Network. The GO Network included such high-profile Web sites as ABCNEWS.com, ESPN.com, NFL.com, Mrshowbiz.com, and Infoseek.com. Infoseek claimed that the GO Network had eight million members. The deal, estimated by MBNA to be worth up to $100 million, included an affinity credit card aimed at online consumers. The deal ultimately collapsed when the GO Network was shut down by Disney causing MBNA to write off its investment.
Net income in 1998 reached $776 million, up from $622 million in 1997. Managed loans increased 21 percent from 1997 to reach $59.6 billion. MBNA announced that it had added 9.3 million new accounts and arranged endorsements with 475 new organizations, including the Canadian Nurses Association, the University of Hawaii, the Canadian Football League, the American College of Dentists, and Miami Heat. MBNA's share of the U.S. credit card market grew to 12 percent in 1998, and its share of the credit card industry in the United Kingdom reached ten percent. The company's international operations grew rapidly to reach $4.9 billion in loan balances in 1998, an increase of 75 percent from 1997. MBNA managed to keep its loan losses low by remaining true to its proven tactic of carefully selecting responsible consumers with steady incomes; the company's characteristic customer in the late 1990s earned an average household income of $60,000 and was a homeowner.
As MBNA approached the end of the 1990s, it had successfully become a leader in the volatile and competitive credit card industry, with a solid history of increasing revenues. In 1999 MBNA acquired endorsements from 400 new groups, including the Marine Corps Association, Northwestern University, the American Automobile Association, and Carnegie Hall. Total managed loans grew $12.6 billion over 1998 to reach $72.3 billion. MBNA's net income in fiscal 1999 topped $1 billion, the best performance in the company's history. The U.K's Office of Fair Trading has begun an investigation of MBNA's European affiliate, looking into what it calls "alleged unfair contract terms" and studying how it establishes late, overlimit and returned check fees.
[edit] Politics
The neutrality of this section is disputed. Please see the discussion on the talk page. Please do not remove this message until the dispute is resolved. (December 2007)
MBNA was one of the prime movers in lobbying for the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which took 11 years and millions of dollars spent on lobbying before the act was finally passed when 15 Democrats (all of whom had received campaign contributions from MBNA, notably Joseph R. Biden, Jr. (D-DE) $147,700) joined with their Republican colleagues to sign it into law.
MBNA was one of the companies mentioned on a 2004 Frontline PBS special about unfair business practices by credit card companies[7]. Some industry practices which MBNA possibly engaged in previously included doubling or tripling of interest rates, shifting billing due dates/payment cycles monthly, and raising rates for customers whose payments were a day or two late which earned it the sobriquet, Misrepresentation Bank of North America. For further information and links, see Credit Cards.
After the MBNA / Bank of America deal of January 1, 2006, a number of MBNA execs were booted off the Bank of America board of directors due to their fears that their unethical practices could result in criminal charges against them under a number of statutes including the Sarbanes-Oxley Act.
[edit] References
On June 30, 2005 MBNA announced that it was being acquired by Bank of America for stock and cash totalling more than $35 billion. The deal was closed on January 1, 2006. The acquisition resulted in MBNA being re-named to Bank of America Card Services while still based in Delaware. For the first part of 2006, MBNA still issued credit cards under its own name associated with Mastercard, VISA, and American Express, but by the second half of 2006, all card products were re-branded as Bank of America.
At the same time in June 2005, MBNA bought Loans.co.uk (LCUK), then the UK's leading finance broker. Although figures were never released, various media outlets including newspapers in Watford, Hertfordshire where Loans.co.uk head office is based (they have a call centre in Preston, Lancashire), reported the deal to founders David Cowham and Steve Hayes being worth £100m.[3] MBNA/Bank of America have since decided to close Loans.co.uk due to the current market.
On January 1, 2006, MBNA merged with and into Bank of America. MBNA America Bank, National Association, (MBNA) then became a wholly-owned subsidiary of Bank of America. On June 10, 2006, MBNA changed its name to FIA Card Services, National Association (FIA). On October 20, 2006, Bank of America, National Association (USA), a subsidiary of Bank of America Corporation, merged with and into FIA.[4]
It should be noted that in Canada and Europe the MBNA name is retained. MBNA Europe headquarters is in Chester, England. MBNA Canada's headquarters are located in Ottawa, Ontario. In 2007, the Canadian division was named one of Canada's Top 100 Employers.[5]
This purchase was a reunion of sorts. In 1993, NationsBank bought MNC Financial (whose credit card division was spun off years earlier to become MBNA). Five years later, the Bank of America that exists today was the result of the merger between the San Francisco-based Bank of America and the Charlotte-based NationsBank. In 2005, with Bank of America buying MBNA, it is in effect reuniting MNC Financial's credit card portfolio to its original banking assets and combining the Bank of America credit card portfolio with MBNA's.
MBNA was founded in 1982 by a group of MNC Financial executives headed by Charles Cawley. Its first office was housed in a converted A&P supermarket in Ogletown, Delaware.[6] Until his recent death, Cleveland Browns owner Al Lerner served as Chairman of the Board.
The company, which has operations throughout the United States, Canada, Ireland, Spain, and the United Kingdom, also provided retail deposit accounts, consumer loans, and insurance products.
Employing more than 25,800 people around the world at the time of the merger with Bank of America, MBNA owned or managed more than $122.5 billion in outstanding consumer credit loans. Most of this loan debt was held in securitized portfolios that had been sold to other entities such as insurance companies and pension funds. MBNA virtually invented the process for securitizing credit card debt and this process contributed significantly to the fast growth of the company. It allowed for increasing the amount loaned without having to acquire matching assets to offset the loans.
[edit] MBNA History
Charles Cawley founded MBNA in 1982. The small bank, based in a Newark, Delaware supermarket, was formed as the credit card subsidiary of MNC Financial, a regional bank holding company headquartered in Baltimore, Maryland. The credit card industry was growing rapidly at the time, and Cawley was eager to expand the enterprise. Rather than pursuing the same strategies as his competitors, though, Cawley was looking for a marketing strategy that would separate his product from the homogenous horde of credit card lenders that competed mostly on price.
In 1983 Cawley approached his alma mater, Georgetown University in Washington, D.C., about partnering with him. His idea was to get the Georgetown University Alumni Association to endorse a credit card that would be offered exclusively to its members and generate a royalty or percentage of all revenues derived from the cards. The enticement for cardholders was that their use of the card benefited the alma mater, and that the card displayed their affiliation with Georgetown. The alumni association agreed to the project, and Cawley's first direct mailing effort was a hit. In addition to signing up an unusually large percentage of its prospects, MBNA benefited from the overall credit quality of its new customers, who were categorized generally as having relatively high income and education levels, thereby resulting in lower delinquency in charge-off levels.
As a result of his success with Georgetown, Cawley was convinced that he was on to something. By issuing 'affinity' cards and focusing on customer service, MBNA added value to an otherwise commodity-like service. He realized that if he could duplicate the results working with other groups, he could substantially increase MBNA's profit margins by capturing a more upscale and, therefore, less risky and higher spending segment of the market. Significantly, marketing costs per account could be greatly reduced because the response rate of direct sales efforts would be much higher than the industry average. Indeed, other credit card companies at the time often resorted to mass mailings targeted to broad groups identified by zip code or income level. In contrast, MBNA's prospects were motivated to review the credit card offer simply because of their affiliation with the group sponsoring the card.
Cawley next succeeded in getting the American Dental Association to sponsor an affinity card, and he followed that program with an affinity card for the Aircraft Owners and Pilots Association. Both efforts were successful. Throughout the mid-1980s Cawley aggressively approached new partners, focusing on various clubs and associations with an upscale membership. By 1985, in fact, MBNA was managing more than $1 billion in outstanding loans, compared with just $250 million going into 1983. MBNA's net income surged to $67 million in 1986 as outstanding credit vaulted to the $2 billion mark. Revenues and profits continued to surge as MBNA added affinity cards for major groups like the Sierra Club, Association of Trial Lawyers of America, the University of Texas, and National Education Association.
MBNA sustained its swift growth rate during the middle and late 1980s by scouting out upscale groups like college alumni associations and professional societies. After it selected an organization, it would offer future royalties in exchange for the group's membership list and permission to use its name and letterhead in direct-advertising efforts. By the early 1990s some groups were generating hundreds of thousands of dollars annually as a result of credit purchases under such agreements. For example, the Sierra Club arranged to receive one half of one percent of every charge made by its group members. MBNA had succeeded in signing up 45,000 of the environmental group's members by 1994, bringing more than $400,000 to the Club's coffers annually.
Although Cawley's strategy was unique for the early 1980s, by the mid-1980s other credit card companies were employing similar tactics. Nevertheless, MBNA continued to boost market share. Steady gains were in large part the result of fruitful marketing programs. MBNA marketers regularly solicited prospective groups with phone calls and by attending trade shows. Once they had the accounts, they utilized aggressive telemarketing and direct mail techniques to constantly boost the sizes of the accounts. For example, the Penn State Alumni Association entered into an affinity card agreement during the mid-1980s with a local bank, which succeeded in signing 15,000 members to the card. MBNA took the account over in 1989 and proceeded to boost membership to more than 120,000 within four years.
MBNA maintained its high-quality customer base by relying on credit reports to identify the most affluent and responsible customers. The strength of its credit base was reflected in its extremely low percentage of uncollectible loans, which was well below the industry average. Once it got the customers, it focused on keeping them with good service. For example, MBNA was the first credit card issuer to offer 24-hour-a-day service to all of its customers, and its phones were answered by people rather than by machines. In addition, people, rather than computer software, also reviewed individual account applications.
As MBNA's accounts swelled, so did its profits. By 1987 MBNA was managing more than $3 billion in credit card loans and netting a healthy $75 million annually in income. Managed loans surpassed $4 billion and then $5 billion in 1988 and 1989, as profits ballooned to more than $100 million annually. By 1990, MBNA was managing about $8 billion in credit card loans and pulling down nearly $130 million in profit. Those figures reflected an annual growth rate of more than 17 percent between 1987 and 1990. MBNA had become the largest single issuer of gold MasterCards and the fourth biggest provider of premium Visa cards. Its gold cards, in fact, made up about 42 percent of its accounts and were responsible for nearly 60 percent of MBNA's outstanding loan balances. Going into 1991, MBNA was marketing affinity cards for about 1,400 groups, including 223 medical and 70 attorney associations.
MBNA's rampant growth during the late 1980s mimicked the gains of its corporate parent, MNC. MNC invested heavily in real estate during the period and enjoyed solid profits. Unfortunately, the commercial real estate market collapsed before the end of the decade. By 1990, MNC, swimming in red ink, was desperate for cash. After losing more than $240 million during the first three quarters of 1990, MNC put its crown jewel, MBNA, on the auction block. Several credit card companies inquired, including Sears' Discover Card unit, but they balked at the $1.1 billion price and waited to see if the desperate MNC would go lower. Instead, MNC spun off MBNA in January 1991 in a public stock offering that raised about $955 million. The offering took place just two weeks before MNC's deadline to pay a $271 million debt.
Among the big winners of the MBNA spin-off was Alfred Lerner, a magnate with a personal worth estimated at $600 million at the time. Lerner was a major MNC stockholder. He had sold his bank, Equitable Bancorporation, to MNC in 1990 in exchange for MNC stock. Within weeks after the sale, however, MNC was drowning in real estate losses. Lerner was called in to run the bank, and he made the decision to sell MBNA. Shortly after the public stock offering, MBNA's stock price soared, and Lerner realized more than enough profit from his MBNA shares to offset his losses from his ownership in MNC. Lerner, who still owned about ten percent of MBNA in the early 1990s, became CEO of the newly formed MBNA Corporation. Still, Cawley, as president, continued to run the company.
By the early 1990s, MBNA's work force had grown to more than 5,000. To house its thriving operations, MBNA developed new facilities, including several important new regional marketing centers in Atlanta, Dallas, Cleveland, and Maine. From those facilities, several hundred representatives would conduct direct-marketing campaigns throughout their region and also provide service and information-processing functions.
The Northeast Regional Marketing Center in Camden, Maine, was representative of the marketing centers, and it also marked a tie to Cawley's past. Cawley's grandfather had once operated dress factories in Camden and adjacent Belfast, and Cawley was familiar with the area because he had summered nearby at his family's Lincolnville Beach estate. By the time the facility was completed in 1993, it was housing 250 people, and within two years MBNA had boosted that number to 600 and was planning further expansion in the area.
Despite the U.S. economic downturn of the late 1980s and early 1990s, MBNA continued to advance throughout the early 1990s. Managed loans nearly topped the $10 million mark in 1992 as MBNA's net income clambered to an impressive $170 million. By 1992, one-third of all U.S. doctors and about 20 percent of all attorneys were carrying MBNA credit cards, and their accounts were proving to be surprisingly profitable. Indeed, some analysts had questioned the wisdom of marketing credit cards to high-income individuals, few of whom would be expected to keep a running balance at high credit card interest rates. The average annual income of MBNA's cardholders in 1992 was an industry high of $54,000. However, MBNA's typical customer kept a running balance (at an average interest rate of 17.3 percent) of $2,200, about 35 percent higher than the industry average. By 1995, the customers' average annual income had risen to $59,000 and they were carrying an average balance of $2,886 (at an average interest rate of 16.4 percent).
Furthermore, MBNA charged its customers annual card fees of $20 to $40. Despite a flurry of new competition in the credit card industry, though, MBNA's affinity strategy allowed it to continue to successfully charge fees while many competitors dropped fees or slashed interest rate charges. MBNA also profited by selling much of its receivables forward at a fixed rate, a practice that essentially allowed the company to finance its portfolio at relatively low interest rates. Although that strategy left MBNA vulnerable to rising short-term interest rates, it paid off big during the early 1990s when rates were depressed.
MBNA's strategy was to sell to people with a common interest. In addition to the organizations and financial institutions that endorsed the company's products, MBNA began looking for 'created affinities.' For instance, it began offering cards displaying family coats-of-arms, as well as cards picturing regional landmarks to people proud of their home towns or states. By the mid-1990s, it was marketing to fans of nearly 200 different professional sports organizations, including National Football League teams, motor sports fans, and teams in every other major sport.
In 1995, MBNA moved its headquarters from a suburban location to Rodney Square in downtown Wilmington. This investment was credited with help to revive the downtown real estate market.
The neutrality of this section is disputed. Please see the discussion on the talk page. Please do not remove this message until the dispute is resolved. (October 2008)
MBNA focused its hiring practices on recruiting the best and brightest people. Many of the Customer Satisfaction Specialists handling incoming phone calls were college graduates. Whereas most other banks will hire practically anyone who shows up, MBNA knew that the difference was the people it hired. MBNA specialists were paid above average salaries and were paid additional incentives for going above and beyond what was expected of them. There was usually plenty of overtime, and there were also cash bonuses for working overtime during high call volumes. It was not uncommon for a phone representative to make in excess of $40,000 a year.
MBNA people dressed like professionals. Men were required to wear a suit and tie and dress shoes. Women had similar dress standards. MBNA focused a great deal on appearance. MBNA buildings were immaculate on the inside and outside. Many of the buildings were adorned with classic cars from Charles Cawley's personal collection, including a Duesenberg.
Because of MBNA's efficient financing strategies, marketing tactics, and customer service, profits surged going into the mid-1990s. Managed loans jumped to $12.4 billion in 1993 as net income topped $200 million. By 1994, MBNA had issued more than 14 million cards and was partnering with more than 3,600 different organizations, including the Telephone Pioneers of America, American Legion, and more than 400 universities and colleges. Managed loans grew to nearly $19 billion by the end of 1994, and the credit quality of its accounts was still much better than the industry norm. MBNA began to augment its operations in 1993 with home equity loans offered through its subsidiary, MBNA Consumer Services, Inc. It also launched initiatives overseas: it started in the United Kingdom with an affinity card for members of the Rolls-Royce Enthusiasts' Club.
MBNA continued to strengthen operations and grow its credit card business in the latter half of the decade. The company added consumer retail loans to the list of offerings provided by MBNA Consumer Services in 1996, thus allowing customers to finance costly purchases such as computers. Also that year the firm established the MBNA Insurance Services division to offer credit-related insurance, a service the company had offered since 1987. In 1997 MBNA Insurance Services began to market property and casualty insurance, primarily auto, as well as health and life insurance products. In 1998 MBNA established MBNA Canada Bank and began marketing credit cards to Canadian consumers.
In the late 1990s MBNA grew not only through credit card growth but also through acquisitions and partnerships. In 1997 MBNA purchased the credit card operations of Fidelity Trust Company, a subsidiary of Fidelity Investments. The acquisition included about 300,000 credit card accounts and $450 million in assets. In 1998 alone MBNA completed 25 acquisitions, including the acquisition of the credit card operations of PNC Bank Corp. in December for about $2.9 billion. Ventures the following year included a partnership with CCB Financial Corp., under which MBNA bought $150 million from CCB banks located in the southeastern United States, and the acquisition of the credit card portfolio of SunTrust Banks Inc. The estimated $1.5 billion purchase included the outstanding loan balances from about 1.4 million credit card accounts.
Hoping to capitalize on the intensive growth of the Internet, MBNA brokered deals with Internet companies in the late 1990s. MBNA's agreement to issue an affinity credit card with EarthWeb, an Internet-based company that sold business supplies online, was promoted by MBNA and EarthWeb as 'one of the first affinity credit card programs in the business-to-business Internet space,' according to Asset Sales Report. MBNA also entered into a marketing partnership with Infoseek Corporation, which operated the GO Network. The GO Network included such high-profile Web sites as ABCNEWS.com, ESPN.com, NFL.com, Mrshowbiz.com, and Infoseek.com. Infoseek claimed that the GO Network had eight million members. The deal, estimated by MBNA to be worth up to $100 million, included an affinity credit card aimed at online consumers. The deal ultimately collapsed when the GO Network was shut down by Disney causing MBNA to write off its investment.
Net income in 1998 reached $776 million, up from $622 million in 1997. Managed loans increased 21 percent from 1997 to reach $59.6 billion. MBNA announced that it had added 9.3 million new accounts and arranged endorsements with 475 new organizations, including the Canadian Nurses Association, the University of Hawaii, the Canadian Football League, the American College of Dentists, and Miami Heat. MBNA's share of the U.S. credit card market grew to 12 percent in 1998, and its share of the credit card industry in the United Kingdom reached ten percent. The company's international operations grew rapidly to reach $4.9 billion in loan balances in 1998, an increase of 75 percent from 1997. MBNA managed to keep its loan losses low by remaining true to its proven tactic of carefully selecting responsible consumers with steady incomes; the company's characteristic customer in the late 1990s earned an average household income of $60,000 and was a homeowner.
As MBNA approached the end of the 1990s, it had successfully become a leader in the volatile and competitive credit card industry, with a solid history of increasing revenues. In 1999 MBNA acquired endorsements from 400 new groups, including the Marine Corps Association, Northwestern University, the American Automobile Association, and Carnegie Hall. Total managed loans grew $12.6 billion over 1998 to reach $72.3 billion. MBNA's net income in fiscal 1999 topped $1 billion, the best performance in the company's history. The U.K's Office of Fair Trading has begun an investigation of MBNA's European affiliate, looking into what it calls "alleged unfair contract terms" and studying how it establishes late, overlimit and returned check fees.
[edit] Politics
The neutrality of this section is disputed. Please see the discussion on the talk page. Please do not remove this message until the dispute is resolved. (December 2007)
MBNA was one of the prime movers in lobbying for the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which took 11 years and millions of dollars spent on lobbying before the act was finally passed when 15 Democrats (all of whom had received campaign contributions from MBNA, notably Joseph R. Biden, Jr. (D-DE) $147,700) joined with their Republican colleagues to sign it into law.
MBNA was one of the companies mentioned on a 2004 Frontline PBS special about unfair business practices by credit card companies[7]. Some industry practices which MBNA possibly engaged in previously included doubling or tripling of interest rates, shifting billing due dates/payment cycles monthly, and raising rates for customers whose payments were a day or two late which earned it the sobriquet, Misrepresentation Bank of North America. For further information and links, see Credit Cards.
After the MBNA / Bank of America deal of January 1, 2006, a number of MBNA execs were booted off the Bank of America board of directors due to their fears that their unethical practices could result in criminal charges against them under a number of statutes including the Sarbanes-Oxley Act.
[edit] References
^ USPages.com > Regional Banks > MBNA Corporation
^ Ted Griffith (January 1, 2006). "MBNA gone, but what about jobs? New owner 'ready to pull the trigger'". The News Journal (Wilmington, Delaware). http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20060101/NEWS/601010334/1006/rss.
^ "Made it by 40". Daily Telegraph. 2006-12-13. http://www.telegraph.co.uk/finance/2952352/Made-it-by-40.html. Retrieved on 2008-12-03.
^ Yahoo! Finance: Form 8-K for FIA CARD SERVICES, NATIONAL ASSOCIATION[dead link]
^ "Reasons for Selection, 2007 Canada's Top 100 Employers". http://www.eluta.ca/einfo?en=MBNA+Canada+Bank&ri=468914fb4733032394b387a91f3324f8&rk=f7b45f298ee68cc94a17099df0c14bee.
^ Nicholas Varchaver (May 13, 2002). "Who's The King Of Delaware?". FORTUNE Magazine. http://money.cnn.com/magazines/fortune/fortune_archive/2002/05/13/322906/index.htm.
^ PBS.com - Frontline: Secret History of the Credit Card
[edit] External links
Bank of America Official Site
Yahoo! - MBNA Corporation Company Profile
PBS video - Secret History of the Credit Card
MBNA Contact Centre Careers
Information about MBNA's Corporate Foundation
Retrieved from "http://en.wikipedia.org/wiki/MBNA"
Categories: Companies established in 1982 2006 disestablishments Bank of America legacy banks Wilmington, Delaware
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