Capital one rate hike - incensed!!!

nomoneytoday

adam_button wrote: »

boo hickey!!! and I quote "The important three-month sterling Libor rate continued its more rapid descent, falling from 0.905% to 0.897%, announced on Wednesday, 29 July. "

As you are not a bank, they won't lend you the funds at that rate.
Lending rates to consumers has gone up. After all those refunded bank charges and bad debtors have cost all round...

I would vote with your feet and find a card charging a more reasonable APR

Leosmummy

Ive just ditched and switched!!!!!!! Besides this hike Cap One's customer service is diabolical - I am currently making a complaint to the ombudsman has they managed cancel my dd 3 times and charge me for missing payments!!!!!

DITCH.........................

CannyJock

dannykos wrote: »

Did you even read my post??

1.53% ANNUAL INTEREST RATE!?

1.53% annual rate? Best rate I've ever heard of outside of a promotion.

Perhaps the 8.54% is to correct the interest back to the 5.9% rate you should have been on? Either way, if you can clear it before the new rate kicks in then worth doing.

dannykos

apparently I can opt out of the rate rise, and pay off the existing balance at the current rate, but NOT make any new purchases or BT's.

CannyJock

If they'll let you make the minimum payments forever and a day at 1.53% APR then in pounds and pence that'd be the clever option - especially when you can get up to 6% AER on your savings just now. I'd make any planned purchases on the card before doing this though.

What I'm not 100% sure on is how this gets reported on your credit card when you close it - if it doesn't report as being in an "arrangement to pay" then there's absolutely no harm done. You might just win a watch on this.

dannykos

I think i'll try and load up as much as practical on it… anyone need any money?

willstewart

I got a letter today telling the usual rubbish about "due to global so-and-so, we've got to put your rate up" . Going to be 31.93% from my September statement. Glad to know that never missing a payment, paying 2/3 of the balance off in just over 2 weeks etc makes you a bad risk.
Would love to know what their definition of a good risk actually is.

Seriously who do they actually make their money from?

They're not renowned for large credit limits or are they?
They seem to love giving out 0% deals for months to new customers which surely doesn't really make them anything?
They don't seem to like exisiting customers who have outstanding balances and therefore make them money.

My card has £185 left on it to pay off and that will be gone by next month at the latest. They're not going to get a penny of that large % rate jump off me so why even bother?

cse

Re: 1.53% annual rate - if you were booked on 5.9% a few years ago and it's now 1.53%, it's likely that you're on an annual rate linked to the BOE base rate (Cap One offered this kind of product a few years back). Watch out for this as the base rate starts to go back up - it'll still be a while before you hit 8%+ though

cakey

i had the letter too. i signed up to life time of balance at 3% (£10K ) and they hiked too......................................27%!!!!!! is this right even though i signed a contract saying life time of the blanace? the only way i could get out of the rate is to cancel the card and continue paying off over time. boo

ExNicotineQueen

turbo-trucker wrote: »

I had a letter this morning from Capital One, i was really mad to find my APR has gone from 24.9% to a whopping 34.9% . (10% hike is a right stinker)

Same here, same rate and everything. :rolleyes:

Does anyone know if I call them and say I reject the price increase and want to pay off my balance at the old rate as allowed, whether;

a) Any further interest charges at the old rate will still be added monthly? Or will they just close my account and expect me to clear the balance within 30 days or something?

b) How this will be reported on my credit reference files? Will it be marked as 'arrangement to pay'?

Thank you for any help.