Letter from Alliance & Leicester

HerRoyalFruitiness

Hello all

I just received a letter from Alliance & Leicester telling me that, as of 1st January 2009, they are putting up their APR of their credit card to:

27.9%

What planet are they on??? Do they seriously expect me not to run a million miles in the opposite direction rather than use a card like that!!

I wouldn't mind but I bank with them.

Is this a common occurrence among banks? I thought they would all be hanging onto their customers rather than sending them screaming in the opposite direction!

LilacPixie

MBNA did the same.

NickX

LilacPixie wrote: »

MBNA did the same.

Alliance and Leicester is a card run by MBNA

nickmack

HerRoyalFruitiness wrote: »

Is this a common occurrence among banks? I thought they would all be hanging onto their customers rather than sending them screaming in the opposite direction!

Yes, if you do a search on this forum, you'll find almost daily posts about interest rates being increased.

It's there way of saying, they either don't want you as a customer or if you're forced to remain, they want to make as much as they can out of you while they still can.

If you have a balance, try and transfer it to a cheaper deal, see Martin's guide:

http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

Paul_Herring

You do have the option of paying the balance off every month and not get charged interest as a result...

Paulgonnabedebtfree

HerRoyalFruitiness wrote: »

Hello all

I just received a letter from Alliance & Leicester telling me that, as of 1st January 2009, they are putting up their APR of their credit card to:

27.9%

What planet are they on??? Do they seriously expect me not to run a million miles in the opposite direction rather than use a card like that!!

I wouldn't mind but I bank with them.

Is this a common occurrence among banks? I thought they would all be hanging onto their customers rather than sending them screaming in the opposite direction!

It was a few years ago now but this same bank turned me down for a credit card the same week that they accepted me for a mortgage. In those days I owed little money but did have a (very good) track record for repaying, and already had a card (maybe two).

MRSTITTLEMOUSE

I got a letter from A& L last week saying the opposite,which I could'nt understand.I've had mine cut to 15.9%.Mind you I've been with them around 20 years and never defaulted but they don't make more than a couple of quid a year from me anyway.