Vanquis card - interest rate hike

meatloaf43154

I have just got my latest Vanquis statement, and as from next month they are putting my interest rate up from 48% to 54%, it went up from 40% to 48 only 4 months ago.

Rang them to complain and was told all of thier customers are having this rate of increase applied to thier accounts. I asked how tehy could justify a 6% increase when base rate is only 0.5% and was told due to the economic climate.

I am writing to thier MD to get his decision on this then i will take it to the Ombudsman as i feel +6% id really unreasonable and 12% increase in 4 months is just extrotionate.

Just to warn you all to watch out for it. Let me know if you have had 6% increase applied or any different figure.

I will post the replies from the MD and Ombudsman as they arrive.

cifpower

I got notified last month that mine is going up to 40% from 34%

NickX

40%, 48%, 54%

These rates are shocking :eek:

Please make sure that you pay in full every month. You really don't want to be paying Vanquis interest at those rates, its pretty much daylight robbery.

PNPSUKNET

Its provident, what do you expect? Im not sure the regulator will be able todo anything as it does say variable intrest

NickX

PNPSUKNET wrote: »

Its provident, what do you expect? Im not sure the regulator will be able todo anything as it does say variable intrest

Well I didn't expect anything different, I just urge people to avoid paying such rates by paying off in full every month and ontime.

IMO companies such as Provident are lowlifes who are profitering from those who can least afford it. I agree that the regulator cannot do anything at present, but it is possible that such high interest rates could be addressed by the government before too long as I notice they are taking measures to keep people out of too much debt during the recession.

Bosie

I too have a Vanquis card but my slant on it,I can 'use' them! By not paying them interest and building up a decent credit record. Then move on to a mainstream card. I am not impoverished but damaged my credit files a few years ago, so I think cards like Vanquis, Aqua have a purpose in a funny way.