Interest Rate Increase

andy_hardaker

i recently received a letter from m&s money telling me they were raising the interst rate on my credit card. as i have not spent on it for a while and am paying it off this is increasing the amount owed. ( i.e. my balance was built up at X% but is now being charged at Y%) my wife has just received a similar letter from lpf. is this legal?

NickX

andy_hardaker wrote: »

is this legal?

In a word yes.

The standard rate of interest on Credit Cards is variable and if you have a search on the forum you will find that reports of these type of hikes are now commonplace in the current economic climate.

_Andy_

andy_hardaker wrote: »

i recently received a letter from m&s money telling me they were raising the interst rate on my credit card. as i have not spent on it for a while and am paying it off this is increasing the amount owed. ( i.e. my balance was built up at X% but is now being charged at Y%) my wife has just received a similar letter from lpf. is this legal?

You agreed to a variable rate credit agreement. Why would your lender varying that rate not be legal?

DipStick

All the lenders are trying to reduce their risk and increase their income - which means increase interest rates. Get your own back, pay down the balance!