Credit Card Con

HEDGES295

I appreciate I am Idiot!

Some years ago I took advantage of a Barclaycard Offer for a lifetime transfer at a low rate of interest. Unfortunately I couldn't clear the balance to Zero, so had a balance at their standard rate.

About a year ago they increased the rate on the standard rate from 17%to 26.5% without any notification or warning. As the low rate is still outstanding anything I pay goes off the low rate.

I have never been late in Paying the Card or any others (always the min paymnt to take max advantage of low Rate of interest), On Experian & Equifax I am considered excellent, I have another Barclaycard which operates at Barclaycards standard Interest rate. I have cover on my monthly Salary of over £1,000 above debt repayment and other living expenses.

I have requested copies of T&Cs for the last 6 Months with no luck, 3 reminders on the Internet. The cards where originally taken out over ten years ago.

I am not intent on reneging on the contract however I am considering the loop hole of Consumer Credit Act or Unfair contract as I would view that they can only raise the interest rate with reasonable cause which I don't believe they can proove. The defence used by Barclaycard when I phoned that it was for my own good is laughable.

Can anyone advise of what course of actions are available if any

chattychappy

I don't think you're an idiot, just you've been outsmarted!

I'm sure the terms and conditions allow them to increase the standard rate if they want to - after all, credit has generally tightened during the years you've had the card and by transferring the balance to it you have become a higher risk. I don't think they need to prove reasonable cause to increase the rate from 17% to 26.5%, but if they had to they could probably justify it.

Since you seem to have a good rating and are living well within your means, can you get a new 0% BT card (or even another life of balance card) and just vote with your feet and move the whole lot away from Barclays?

If you do want to go the "unenforceable" route, bear in mind that even if you succeed it could still affect your credit rating. (I think there are some other threads on this, besides other posters are better able to advise than me on this.)

Good luck!

_Andy_

You agreed to a variable rate credit agreement.
The lender has varied it.
There is no con. (Presumably you wouldn't be moaning about a 'con' if they reduced the rate)

HEDGES295

Andy

Though I see your point I disagree as follows:

I didn't know I signed up for a variable rate card, didn't know it was fixed rate either, however I think I reasonably should expect variations within a narrow band. Given LIBOR rates are currently under 2% I think 27% is excessive. My mortgage is a variable rate loan but would I expect to pay 27% on this? not unless the BOE rate rises which in this case it has done the opposite.

At the same time as I signed this agreement I also agreed to pay charges for late payment charges etc, but these may be contested but I cannot contest the excessive interest? Maybe I should miss a few payments exceed my credit limit then I would have a claim.

Does the variable rate mean that I can vary the rate - no - per se it is therefore a contract on unfair terms.

The Con part of this is a Company invited me to borrow Money at interest rate of 17% and then without consultation warning increased the rate by 10%. Allied to this is the policy requiring me to pay off the lower interest debt first (which I had to pay for!) before I can tackle the excessive interest element.

Probably the easiest and best way to resolve this is to take my debt elsewhere but it still hurts...

97trophy

HEDGES295 wrote: »

. Given LIBOR rates are currently under 2% I think 27% is excessive.

Amex have just announced that 10% of their creditcard loans have been written off. Capital One write-offs are running at 9.4%. Link

Someone has to pay for those losses.

HEDGES295

97trophy wrote: »

Amex have just announced that 10% of their creditcard loans have been written off. Capital One write-offs are running at 9.4%.
Someone has to pay for those losses.

But why do they make me pay for their poor Credit Control! I could understand if they charged me 17% although this would still seem high but 27%!!!!

I think there are enough other threads already on this soap Box. Given the length of time I have had this card and interest and charges they have made and Commission charges from the shops. If I didn't repay the balance they would still have made a profit out of me.

Maelstrom_2

HEDGES295 wrote: »

But why do they make me pay for their poor Credit Control! I could understand if they charged me 17% although this would still seem high but 27%!!!!

I think there are enough other threads already on this soap Box. Given the length of time I have had this card and interest and charges they have made and Commission charges from the shops. If I didn't repay the balance they would still have made a profit out of me.

And so they should.

What, you think borrowing money is a right?
No, it's a privilege and like everything else, you PAY for that privilege

97trophy

HEDGES295 wrote: »

But why do they make me pay for their poor Credit Control!

Who else is going to pay? Those bad debts are not going away and many are guessing that bad debts may even get worse.

Businesses need to make a profit.

The last thing we need is more banks & CC companies asking for tax payers handouts.

ILW

Bit I do not get is, if the OP is so distressed about the company varying his rate, why did he sign up to a variable rate deal in the first place?
Maybe I am missing something.

HEDGES295

Barclays announce £3bn profits in first 6 Months enough said!!!

97trophy

HEDGES295 wrote: »

Barclays announce £3bn profits in first 6 Months enough said!!!

And how much of that profit was from the CCs?

The amount of credit card borrowing written off as a result of defaulting customers rose by 92 per cent during the first six months of the year to £915 million.

source