0% to 36%

Rodka

My son had a credit card with RBS @ 0%. The account was moved on to another company who charges 36%. Is this allowed or indees legal?

_Andy_

If the card was 0% for an introductory period and then went to variable then yes.

MrsTinks

Or if he missed or was late with even just one payment... yes

Rodka

Thank you Mrs Tine and Andy. He has problems now as he cant repay the total and now has a bad credit reference. Money = Problems

MrsTinks

Can he still repay his minimum payments? It would be an awful lot easier if you got him to register on the forums and come share everything with a full statement of affairs on the Debt Free Wannabe forum - then we can look at what the state of play is and how he can best address his debt

Rodka

MrsTine wrote: »

Can he still repay his minimum payments? It would be an awful lot easier if you got him to register on the forums and come share everything with a full statement of affairs on the Debt Free Wannabe forum - then we can look at what the state of play is and how he can best address his debt

Much appreciated Mrs Tine. he doesnt live with me and is off line at present, however I will take your advice and get him to come round and log on for your advice. Its a worrying time now.

It may be a day or two before I can get him here and I am most grateful for your assistance.

_Andy_

An option I should have mentioned is him simply ringing the card provider and asking them to reduce the rate.
MBNA have been hiking up rates for a lot of people but many have had success in negotiating it down.
Best of luck with it allr

exel1966

Rodka wrote: »

My son had a credit card with RBS @ 0%. The account was moved on to another company who charges 36%. Is this allowed or indees legal?

The account was moved to another company as a bad debt due lack of payments ? If so then yes, the card company can sell the debt elsewhere, but that would usually be after continued efforts to get him to pay being ignored.

OR

did you mean something else, such as he BT'd the debt to another card company charging 36% ?

Rodka

exel1966 wrote: »

The account was moved to another company as a bad debt due lack of payments ? If so then yes, the card company can sell the debt elsewhere, but that would usually be after continued efforts to get him to pay being ignored.

OR

did you mean something else, such as he BT'd the debt to another card company charging 36% ?

I believe that the RBS passed all of their credit card business on to MBNA and that there wasnt much choice given.

NickX

Rodka wrote: »

I believe that the RBS passed all of their credit card business on to MBNA and that there wasnt much choice given.

No, this isn't the case, RBS still run cards such as MINT, Ulster Bank and Nat West completely independently of MBNA.

Rodka

Thanks for that NickX.
I will have to get the full details. It may be that he made a late payment and was moved over to MBNA as punishment.