MOAA [MBNA America] unfairly raised my interest rates to the point that I will not be able to afford paying them back. I want to fulfill my obligation to pay off my balance—however, not on their insane new terms. I formally request arbitration.
Several years ago, I entered into an unsecured credit agreement with at a low interest rate with a balance transfer agreement. I chose them because I their association with the US Military [MOAA] which to me meant they were credible and honest. Unfortunately this was not true in the case of MBNA. I have made regular payments, and never missed a payment.
MOAA lured me in with a low interest rate on a balance transfer. They regularly sent my bills late, which in turn made me late on my payments. Many times I don't receive a monthly statement. I made many calls about this during the first year of this account.
To counter their erratic billing, I consistently made payments prior to receiving their statements. During the first week of each month, I'd send an electronic funds transfer from to MOAA to ensure my payments were received on time.
On 12/10/04, I found I was billed for a late payment. I discovered my interest rate was increased to 20.48%. I was not notified my rate was to increase. I was told previous statements held that announcement. I have not received those statements. I found my previous months payment was credited late. I went to extraordinary efforts to make my payments ahead of time. I should not also be punished with exorbitant interest rates. I complained and they agreed to cut the late fee in half for each of these.
I am willing to pay back on this unsecured loan, in the amount of approximately $18,000 but only at a fair interest rate.
The above is a copy of the report I filed with the Better Busines Bureau of Delaware.
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