Help Capital One Increase APR

ukbill69

Hello,

Ive been with capital one "no hassle platinum" 6.8% pa for life for over 3 years now and I must say they are a good company.

Ive got a letter today saying due to its costing them more to lend they have to put my rate up to 9.94%.

The options they have given:

Option 1
Repay the outstanding balance at your old rates immediately at old rates and close account down.
Option 2
If I cant afford to pay off your old balance, continue to make monthly payment until all balance is cleared at old rate and then phone to close account.
Option 3
Accept the new rate.

All has be be sorted by 20th Feb.


Can they do this? or is there anything I can do to contest this?, any legals?

TFD_2

9.94% seems a very reasonable rate in the current climate.

jccaird

I've just posted the exact same thing regarding their non-platinum card - I would have felt that hike even with a small balance of £500.

ukbill69

I got this card for the reason that I wouldn't have a rate increase and pay a low rate for life. that's was the wording. It doesnt look good for capital one.

tetley

A friend of mine has just got a similar letter from capitalone ( today),but his a.p.r has gone up to 32.81% :eek: :mad: from 14.9% due to the current credit environment,off course he is a valued customer blah blah blah.
Anyway he has just done a balance transfer to mbna for 0% for 6 months then 14%.
so up yours capital one

TFD_2

tetley wrote: »

Anyway he has just done a balance transfer to mbna for 0% for 6 months then 14%.

He won't be so cocky when MBNA then put the interest up to 34.9%.

Most card companies are increasing interest rates at the moment, so this is nothing unusual.

tetley

TFD wrote: »

He won't be so cocky when MBNA then put the interest up to 34.9%.

Most card companies are increasing interest rates at the moment, so this is nothing unusual.

COCKY is a bit strong isnt it ?
He is only doing what everybodys else is,i take it you have no credit card debts

cifpower

ukbill69 wrote: »

I got this card for the reason that I wouldn't have a rate increase and pay a low rate for life. that's was the wording. It doesnt look good for capital one.

It seems to me that any current balance will continue to be charged the current APR. Only any new transactions willbe charged at the higher APR

latecomer

Edit. Just re-read it again and it looks like if you want to spend on it, then you need to accept the new higher rate. So the best thing to do is just continue to pay it off and if you have a good credit rating apply for a new card to spend on. If you are successful just make sure you dont increase your debt.

anotherpaul_2

Option 2 and a new card sound like the way to go. But probably phone them and confirm that the debt stays at the old rate. Make it clear that you don't wish to accept the new rate.

Bear in mind that if you spend ANYTHING on the card after the cut-off date they will use it as an excuse to up the rate on the entire balance. That would include any agreements you might have with companies to debit your card monthly / annually.

TFD_2

tetley wrote: »

COCKY is a bit strong isnt it ?
He is only doing what everybodys else is,i take it you have no credit card debts

I actually currently owe £36K on credit cards / flexible loans so sorry!

By cocky I meant the remark about "up yours capital one" - MBNA are far more likely to put an excessive increase on the account after the BT period than Capital One - he won't stay on 14% for long.