WARNING -- AOPA credit card holders. The credit card company is trying to change the rules in mid-game. Read the statement sent to you by MBNA.

[Chuck]

Hi everyone,

I recently received a notification in the mail from MBNA. This is the
bank behind the "AOPA Visa Card" -- the one prominently advertised on
the AOPA website front page!

MBNA is proposing ten different changes to the credit card agreement
between us. Well, maybe proposing is too weak a word. They are
TELLING me that these changes go into affect the end of this month
whether I like it or not. And of course -- not a single change does
anything good for me -- just MBNA.

The changes include:
1) Change from an annual percentage rate on outstanding balances to a
variable annual percentage rate (the better to jack up your rate, my
dear).
2) Change the default APR pricing.
3) Change the default grace period (shorten it of course)
4) Change the payment due date (so you're overdue sooner and easier)
5) Foreign transaction fee
6) Transaction fees for cash advances
7) Transaction fee for cash equivalents
8) Change the late fee balance levels. I love their next sentence:
"This may cause your Late Fee to increase to the highest amount."
9) Overlimit fee increase.
10) Changes to the processing of your payment checks (Oh, thats it --
shorten the grace period, the due date, and then delay processing my
payment check so I'm late -- what SCUMBAGS).

All in all, its one big shaft job. And the biggest one of all is
repeated over and over again in this explanation of the changes:

"... if in the future your account is late or you exceed your credit
limit, we may increase the Annual Percentage Rates (APRs) on your
account, (italics) without further notice (/italics), up to a Default
Rate of 24.99%. The new rates will apply as of the first day of the
billing cycle in which your minimum payment is late or you exceed your
credit limit."

This all means that if you are one hour late or exceed your credit
limit by one penny -- they jack up the APR on your card to the highest
allowed by law, 24.99%, and backdate it to the beginning of the
billing period. You find yourself instantly owning them hundreds of
dollars in finance charges for something that might not have even been
your fault!

I hope that everyone who reads this and has an AOPA card will join me
in complaining to the AOPA about these unilateral changes. I am
telling MBNA that I do not agree to the changes and they can have
their card back in pieces if they insist with the changes. But we
also need to bring pressure on the AOPA to terminate their partnership
with any company that would AOPA members with such greed and contempt.

If you feel as stongly about this "breach of contract" as I do,
contact the AOPA at or phone them at
800-872-2672. Let them know how you feel. Maybe MBNA will back off
once AOPA gets enough flack and brings pressure on MBNA.

Thanks for reading this long rant everyone. Clear skies and happy
landings.


Chuck
N7398W

[Blanche]

old news. we started complaining about this months ago.

consider it motivation to pay off the entire amount every month.
then interest rates, etc. are irrelevant.

next, consider whether the 5% discount is worth it to you.

It's a balancing act.

[Jay Honeck]

> consider it motivation to pay off the entire amount every month.
> then interest rates, etc. are irrelevant.

Rule #1 in Financial Life: Never, EVER charge more in any given month than
you can afford to pay back.

Follow this rule, and all the changes MBNA (or anyone else, for that matter)
makes become irrelevant.
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

[xyzzy]

I closed my AOPA Visa account a couple of months ago and they still sent
me this notice!

Chuck wrote:

> Hi everyone,
>
> I recently received a notification in the mail from MBNA. This is the
> bank behind the "AOPA Visa Card" -- the one prominently advertised on
> the AOPA website front page!
>
> MBNA is proposing ten different changes to the credit card agreement
> between us. Well, maybe proposing is too weak a word. They are
> TELLING me that these changes go into affect the end of this month
> whether I like it or not. And of course -- not a single change does
> anything good for me -- just MBNA.
>
> The changes include:
> 1) Change from an annual percentage rate on outstanding balances to a
> variable annual percentage rate (the better to jack up your rate, my
> dear).
> 2) Change the default APR pricing.
> 3) Change the default grace period (shorten it of course)
> 4) Change the payment due date (so you're overdue sooner and easier)
> 5) Foreign transaction fee
> 6) Transaction fees for cash advances
> 7) Transaction fee for cash equivalents
> 8) Change the late fee balance levels. I love their next sentence:
> "This may cause your Late Fee to increase to the highest amount."
> 9) Overlimit fee increase.
> 10) Changes to the processing of your payment checks (Oh, thats it --
> shorten the grace period, the due date, and then delay processing my
> payment check so I'm late -- what SCUMBAGS).
>
> All in all, its one big shaft job. And the biggest one of all is
> repeated over and over again in this explanation of the changes:
>
> "... if in the future your account is late or you exceed your credit
> limit, we may increase the Annual Percentage Rates (APRs) on your
> account, (italics) without further notice (/italics), up to a Default
> Rate of 24.99%. The new rates will apply as of the first day of the
> billing cycle in which your minimum payment is late or you exceed your
> credit limit."
>
> This all means that if you are one hour late or exceed your credit
> limit by one penny -- they jack up the APR on your card to the highest
> allowed by law, 24.99%, and backdate it to the beginning of the
> billing period. You find yourself instantly owning them hundreds of
> dollars in finance charges for something that might not have even been
> your fault!
>
> I hope that everyone who reads this and has an AOPA card will join me
> in complaining to the AOPA about these unilateral changes. I am
> telling MBNA that I do not agree to the changes and they can have
> their card back in pieces if they insist with the changes. But we
> also need to bring pressure on the AOPA to terminate their partnership
> with any company that would AOPA members with such greed and contempt.
>
> If you feel as stongly about this "breach of contract" as I do,
> contact the AOPA at or phone them at
> 800-872-2672. Let them know how you feel. Maybe MBNA will back off
> once AOPA gets enough flack and brings pressure on MBNA.
>
> Thanks for reading this long rant everyone. Clear skies and happy
> landings.
>
>
> Chuck
> N7398W
>
>
>
>
>
>

[Dude]

"Jay Honeck" > wrote in message
news:ygqee.58297$c24.18296@attbi_s72...
>> consider it motivation to pay off the entire amount every month.
>> then interest rates, etc. are irrelevant.
>
> Rule #1 in Financial Life: Never, EVER charge more in any given month
> than you can afford to pay back.
>
> Follow this rule, and all the changes MBNA (or anyone else, for that
> matter) makes become irrelevant.
> --
> Jay Honeck
> Iowa City, IA
> Pathfinder N56993
> www.AlexisParkInn.com
> "Your Aviation Destination"


Jay,

I gotta do you one better. Rule #1 should be: Never borrow money for
anything that is expendable, disposable, or likely to depreciate in value.

IOW get a mortgage, an airplane loan, and pay off the rest with cash or
debit.

95% of people will end up losing money on a 5% refund card. If you are
really diligent, and really enjoy saving money with these programs go for
it. Just realize that your are gambling on your ability to beat the bank in
the long run. Personally, if I included the value of my time just dealing
with them I could never make it worth the lousy $150 per year.

[George Patterson]

Blanche wrote:
>
> consider it motivation to pay off the entire amount every month.
> then interest rates, etc. are irrelevant.

Sure. They've just made it a little harder to do that, though. One thing Chuck
mentioned but IMO didn't make clear is that the change to the payment due date
is that the date will now "float", that is, it will be different every month.

They also mention the ability to do a direct electronic payment on their web
site. If any of you are tempted to try this, be aware that you have to arrange
this at least 4 days ahead (at least, that was the case the last time I tried
it). The transfer doesn't actually take place until the day you specify, but
it's no good for last minute "whoops, I almost forgot" payments.

George Patterson
There's plenty of room for all of God's creatures. Right next to the
mashed potatoes.

[xyzzy]

George Patterson wrote:


> They also mention the ability to do a direct electronic payment on their
> web site. If any of you are tempted to try this, be aware that you have
> to arrange this at least 4 days ahead (at least, that was the case the
> last time I tried it). The transfer doesn't actually take place until
> the day you specify, but it's no good for last minute "whoops, I almost
> forgot" payments.

Right. This bit me once and resulted in a payment being 1 day late, so
I closed the card when they would not waive the late fee.

Every other credit card I have that has online payment credits you the
day you do the online payment, as long as you get it done by 1 pm, so
it's not like it's hard to implement. Just less profitable.

[[email protected]]

Chuck wrote:
<big snip>
>
> If you feel as stongly about this "breach of contract" as I do,
> contact the AOPA at or phone them at
> 800-872-2672. Let them know how you feel. Maybe MBNA will back off
> once AOPA gets enough flack and brings pressure on MBNA.
>

I'm glad you put "breach of contract" in quotes, as it is clear that
you didn't read the contract when you signed up. I don't really blame
you, since it usually takes a high powered magnifying glass, a law
dictionary and 8 hrs. of spare time to get through it.

Simply put, just about every credit card contract offered in the U.S.
says something like (paraphrasing) : "We can change any of the terms of
this contract at any time, for any reason as long as we give you a few
weeks notice". Financially speaking, a credit card contract is so
one-sided, that it boggles the mind. Who would borrow money under
those terms? I don't see much difference between a CC and a loan
shark, except that the CC company can break you financially, while the
loan shark will probably only break your leg. Your only protection is
not to carry a balance on the card.

Forget about contacting AOPA. AOPA is a business. They make a lot
of money off their relationship with MBNA. As long as they keep making
that money, they're not going to be too concerned about you. One of
the ways AOPA makes money is by getting their members to use these AOPA
affiliated side businesses (AOPA insurance agency is also a joke).
While AOPA's core organization is a good one and they do their core job
well, to these side business, you are not a "member". You're just
another customer. AOPA banks on the fact that their good name will
lead you to use these products and services, trusting that they are a
reputable organization that looks out for your best interests. Sadly,
while the core organization may be doing that where flying is
concerned, these side businesses are just money makers. AOPA will
affiliate itself with the company that will give them the most income,
not necessarily what is the best deal for you.

Good luck with your quest,

John Galban=====>N4BQ (PA28-180)