Abbey increased our interest rate

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nzmegs
nzmegs Posts: 1,055 Forumite
Our interest rate on our abbey visa has been put up by 6% to almost 22%! They sent us a letter informing us that we could avoid having the increase if we agree to stop using our card and continue to pay it off.
Basically it seems we are being told that they no longer want our business.

Fair enough - but we have NEVER defaulted on a payment, we ususally pay more than the minimum, we often get offers of 0% etc and we have paid it off in full several times. We also have a current account with Abbey.

Of late we have been using it more often as my husband is self employed so he needs it for work ocassionally as money coming in can be erratic.

We can move this debt to another card at about 9% life of balance so that is what we will do, but why have they done this? has our credit rating all of a sudden gone bad even though we pay everything on time always. We do have alot of debt but we pay it.

I am really annoyed because we have banked with them for 10 years and are loyal customers. Any ideas?

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  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
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    It's probably related to the level of your debt relative to your income..

    How much is your total debt? how much is your income?
  • apt
    apt Posts: 3,190 Forumite
    Name Dropper First Post First Anniversary
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    A lot of credit card companies are putting up interest rates across the board. Egg put up rates by something similar recently. I doubt you've been singled out as an individual.
  • burtoc
    burtoc Posts: 46 Forumite
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    I had the same problem with Halifax I went from 5.9% to 10.9% and then they tried to put it up again to 15.9% a couple of months later

    I was also told I could keep the rate if I closed the account so I rang them up and was told as I was a good customer they will keep me at 10.9% without closing the account - it's probably a mass computer generated "thing" and to get it stopped you need to speak to them
    "this money saving lark is a full time job"
  • nzmegs
    nzmegs Posts: 1,055 Forumite
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    Thanks for that, I will call them and question it. Our income has dropped since we got the card but is still at a reasonable level which allows us to overpay our cards.
    i guess it is just a sign of the times. Hope it doesn't happen with our other cards....
  • Robert_Sterling_3
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    It is a result of the Credit Crunch.
    ...............................I have put my clock back....... Kcolc ym
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