HSBC Credit Card & an ever-increasing APR

whatmichaelsays

I've currently got a HSBC credit card which, when I took it out 3/4 years ago had a competitive-ish rate (for an 18-year-old A-level student) in the region of 15.6 - 15.9%. It's probably not the only card that has been slowly creeping up in recent months and, according to my statement, it's going up again to 19.2% next month.

My question is that, short of switching cards, do I actually have any grounds for complaint? Sure, they'll point out that APRs can change and that in general, credit card APRs are on the rise (presumably because the profit margin in the mortgage market has shrunk). It's just that to me, an increase of around 3pc points is a bit excessive given that I'm a long-standing customer with no history of missed payments or credit problems.

I'm also aware that new regulations are due to come in that states that, IIRC, lenders can only raise your APR once in a 12 month period - are HSBC "squeezing them in" before the regulations come into force?

Simon_Preston

Have a look at my thread here.
http://forums.moneysavingexpert.com/showthread.html?t=1738555

pre123

doesnt sound too bad to me, its all in the agreement so theres no ground to complain as they can charge what they like, i had an MBNA card at 19.9% and they put that up to 36.9%, luck had it i had a balance of 0 so just cancelled the card, if your not happy with the card, most card providers give you the option of keeping it at the old rate but not being able to use the card.. so you have the same balance, same interest rate but not able to use it anymore

_Andy_

You have a variable rate credit agreement and the lender has varied the interest rate.
There is no ground for complaint.

greenmantle

Yes, but other customers' experience has shown that you can politely request them to bear good behaviour in mind, and lower it to something a bit more reasonable...

_Andy_

Agreed, but that isn't a 'complaint', just a request. The lender hasn't done anything wrong.

greenmantle

Well, if the OP agrees with the semantic adjustment, we'll be doing fine here!

sparkey1

Quote "I'm also aware that new regulations are due to come in that states that, IIRC, lenders can only raise your APR once in a 12 month period - are HSBC "squeezing them in" before the regulations come into force? "

The regulations are already in. In short if they raise rates you have 30 days to opt out. You need to tell them that you are opting out. You then stop using the card and pay it off. (Not all at once but you must at least pay the minimum each month)

Quote: "You have a variable rate credit agreement and the lender has varied the interest rate. There is no ground for complaint. "

Actually there is. Again under the regulations they are obliged to tell you why they have raised the rates if you ask. Whats more a contract is unfair if one sides materially changes the agreement without allowing an opt out. If it was agreed that a rate rise would occur every 6 months so be it, but to simply change rates at a whim is not right.