MBNA customers are to be hit with rising interest rates as AvantCard rises the rates by a third.
Letters sent to customers indicated higher costs will take effect over the next two months. The move means the rates charged for buying goods on the credit card will jump from 13.9% to 17.9%. Charges for withdrawing cash on the AvantCard credit cards will now be 22.9%, up from 17.9%. The Spanish based company took over MBNA’s Irish card operations last year.
The rates are being reviewed “based on the current economic conditions.”
“We have recently undertaken a review and confirm that we will be making changes to increase the standard variable interest rates applicable to your account no earlier than two months from the date of this letter,” it said.
MBNA, which is owned by Bank of America, was one of the biggest credit card issuers in the Irish market, operating from Carrick-on-Shannon.
The Irish card operation in Carrick transferred to its Spanish unit, and has been in the process of changing its IT systems which has caused some problems online.