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

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

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

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

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

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!

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