Friday, April 2, 2010

Watch Frontline video on MBNA's (FIA Card Services) abuse customers

Watch the Frontline video on MBNA / Bank of America / FIA Card Services' abuse of customers.
Click here for the Frontline portal to the video on this credit card company's notorious abuse patterns.

Click here to buy the "FRONTLINE: Secret History of the Credit Card" DVD at PBS' online store.

The section from the article on this credit card company's abusive practices. Note that the abusive practices continue into 2010, despite the controversies uncovered as far back as 2004.
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[weasel words] 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. MBNA have been found to be one of the leading implementors of Rate-Jacking or what has also been termed the "Great MBNA Interest Rate Escalator Trick". For further information and links, see Credit Cards.

After the MBNA / Bank of America deal of January 1, 2006, a number of MBNA executives were dismissed from 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.[citation needed]

As of 2009, complaints to regulators by consumers concerning MBNA's unfair and predatory practices have been made with allegations of fraudulent construction of "valid" credit agreements (in the U.K.), abusive and threatening debt collection practices, and a practice of offering attractive balance transfer deals with rate increases that trap customers into debt they can never hope to repay.

If you use your MBNA credit card to pay for good or services and use NOCHEX and the goods or services are not delivered MBNA refuses to allow refunds under section 79.

MBNA records all telephone numbers used to contact them and then those numbers to contact their customers, particularly to chase debts, without regard to the privacy of those customers - for example, if a customer uses a neighbors or work telephone to contact MBNA at some time, that number will remain on MBNA's database and is likely to be used for debt chasing purposes. MBNA call centre staff also reveal the reason for calling to whoever answers the call, which may be the customer's boss, neighbor, friends, and family. A great deal of complaints in US and UK consumer forums has revealed this particular violation of privacy is a common activity of MBNA.

U.K. Trading Standards in the Chester area, where MBNA Europe Bank is based, have been contacted by numerous customers of MBNA, warning of the company's behaviour, but the standards agency, responsible for upholding customer complaints, has so far failed to engage in any meaningful communication with those customers despite being in "regular contact" with MBNA for unknown reasons.[citation needed] MBNA Europe Bank is the largest employer in the Chester area.

In Ireland, MBNA was accused of calling consumers up to eight times a day who are behind in making payments, which prompted the state debt advisory service to publicly state that harassment is outlawed. Affected people were advised to complain to the relevant authorities.[8] The company in December 2009 admitted overcharging 500,000 Irish consumers up to €18 million.[9][10]

MBNA has also been criticised for its practice of having two 0% deals on the same credit card of different lengths which can lead to consumers' balances being 'trapped' and accumulating interest.[11]

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