capital one interest rate?

the_doc735

I thought the bank/base (or whatever it is called?) interest rate had gone DOWN to its lowest ever amount?

Well today I get the letter from capital one saying that they are putting their interest rates UP!!!

What is going on please?

:mad:

_Andy_

Credit card lending is not based on BOE base rate.
Credit cards are variable rate credit agreements (aside from promotional rates) and the lender can increase or decrease it if they wish.

the_doc735

...but surely it is not a good idea in a recession/credit crunch to do this?

Indeed, perhaps immoral?

They would help there customers more by decreasing the rate in consideration of the overall financial state of the nation?

:eek:

clearing_out_my_pockets

They are reducing some rates - mine has reduced by 1.5%, my dad's has reduced by 2%. I assume it's a risk assessment exercise

anotherpaul_2

the_doc735 wrote: »

They would help there customers more by decreasing the rate in consideration of the overall financial state of the nation?

I suspect protecting their shareholders to large loses on defaulted payments is a much higher priority than helping they customers. Sadly.