halifax credit card 42% apr increase

pompski

I was appalled to receive a letter from Halifax saying that they are increasing the APR on my credit card from 11.94% to 16.94%. Thats an increase of 42%.

I've phoned them but they are saying its a business decision and there is nothing they can do. They reccomended I transfer my balance to another credit card provider! I've never missed a payment in the 4 years I've been with them.

I think this is disgusting customer service from a company owned in part by the tax payer.

BenL

It looks a good rate still in the current climate. Much better than the rates people are getting on MBNA cards.

pompski

Its the huge increase thats upset me though, I just don't understand how they can justify that big an increase.

bunny999

BenL wrote: »

It looks a good rate still in the current climate. Much better than the rates people are getting on MBNA cards.

I've got 0% on MBNA

sdooley

It's a huge increase in percentage terms, not necessarily a huge increase in absolute terms. On a £1,000 revolving balance that'd be an extra £50 per year - a lot, but if you're revolving every month you should really consider a loan rather than a credit card at the moment. The bigger problem will be if credit limits are cut.

BenL

Maybe their computer has decided that you have a 42% extra risk of being made redundant this year?

clio

how does that work out at 42 % to me it reads a 5% a year increase!

pompski

Badly written on my part!

yes it is a 5% a year increase but 5 is also 42% of 11.94.

Still not happy. I'm going to transfer to a virgin card. Thats the last time I use a halifax product.

YorkshireBoy

pompski wrote: »

Still not happy. I'm going to transfer to a virgin card.

They've done you a favour then? There are lots of cards giving at least 12 months 0% for a 3% fee...why pay 12% APR on your debt?

Thats the last time I use a halifax product.

Nose...spite...face?

GrizzylePhew_2

That must be why the system at Halifax has been down all day, putting in the increases.

TFD_2

pompski wrote: »

Still not happy. I'm going to transfer to a virgin card. Thats the last time I use a halifax product.

And when MBNA put the interest up on your Virgin card, will you blacklist MBNA as well! You might run out of banks in a few years...

Credit card companies do this - most of them have being putting rates increases in recently, and yours seems one of the less dramatic ones!