Capital one rate hike - incensed!!!

willstewart

What I don't like about this is the fact that they seem to be tarring (sp?) most people with the same brush.

If you pay your balance off on time, never go over your limit, or pay the minimum or above, you're getting penalised with rate increases of 10-100% (and possibly the chance of heavy limit cuts)

This pretty much says to me that they see most customers who fall into the above catergories as a bad risk. Someone who, for whatever reason, doesn't pay their bills, is late with payments, defaults etc is what I as a company would define as a bad risk - not someone who is paying the bills in part or full.
Without trying to offend anyone here, it pretty much says to me that "you're worthless scum and we don't want the likes of you as a customer"

Jinos

[QUOTE
That was exactly the answer I was looking for - thank you very much. I shall call Cap 1 today.

I was wondering, once you have paid off your balance, do they close your card account automatically? I can't remember if it said in the letter that if you choose not to accept the rate you automatically end your relationship with Cap 1 once your card has been paid off, thus in effect closing your account. [/QUOTE]

I seem to remember the letter said 'Ring us when you've finished paying it off to close your account', but best to check with them I guess!
J

Butti

This is what I sent to M&S money which saw them respond with an offer to hold the rates if I closed the account and paid off the remaining over a time convenient to me.

The fair principles that the banking community agreed with the government in January 2009 included the option to be offered to customers of freezing their current rates. Apacs ( now the UK Payments Administration Ltd) have said that you have to give me this option. I would like to be offered and take this option.

I look forward to hearing from you in the next 14 days. If this situation is not resolved within that period I shall be writing to the Financial Ombudsman.

B

jonesMUFCforever

Butti wrote: »

This is what I sent to M&S money which saw them respond with an offer to hold the rates if I closed the account and paid off the remaining over a time convenient to me.

The fair principles that the banking community agreed with the government in January 2009 included the option to be offered to customers of freezing their current rates. Apacs ( now the UK Payments Administration Ltd) have said that you have to give me this option. I would like to be offered and take this option.

I look forward to hearing from you in the next 14 days. If this situation is not resolved within that period I shall be writing to the Financial Ombudsman.

B

You have no case.
You spent the money on a variable credit agreement.

NickX

jonesMUFCforever wrote: »

You have no case.
You spent the money on a variable credit agreement.

Actually I think you'll find that since January 2009, the Card Providers ARE obliged to offer the option of closing the account and continuing to repay the debt at the original rate.

I don't know if this is legally binding but it was certainly agreed between the banking community and Lord Mandelson. However, your repsonse is somewhat ill-informed.

jonesMUFCforever

NickX wrote: »

Actually I think you'll find that since January 2009, the Card Providers ARE obliged to offer the option of closing the account and continuing to repay the debt at the original rate.

I don't know if this is legally binding but it was certainly agreed between the banking community and Lord Mandelson. However, your repsonse is somewhat ill-informed.

So why are so many posters on here complaining that their rates are going up?
Its like the banks are being told to lend more - but the reason we are in the mess we are in is because of too much lending to people and companies that cannot pay it back!

If your rates are going up it is because the lender thinks your rating with them is in danger of going bad ie a long time (6 months or more) where the debt is not even close to be paid off even for one day.

NickX

jonesMUFCforever wrote: »

So why are so many posters on here complaining that their rates are going up?

Virtually all of them are offered the option to close the account and continue making repayments at the existing rate. This is what they agreed to do earlier in the year.

If you re-read the post where you say the poster has "no case" you will see that M&S did oblige and concede to this offer.

willstewart

jonesMUFCforever wrote: »

So why are so many posters on here complaining that their rates are going up?
Its like the banks are being told to lend more - but the reason we are in the mess we are in is because of too much lending to people and companies that cannot pay it back!

If your rates are going up it is because the lender thinks your rating with them is in danger of going bad ie a long time (6 months or more) where the debt is not even close to be paid off even for one day.

What a load of cr*p. It's nothing to do with them thinking that you'll be a bad risk one day but trying to fleece as many of their customers out of as much as possible by massively hiking the interest rates.
I myself, along with others in this thread, have handled their accounts well i.e not missed payments, paid balances off etc and still been hit by high interest rate increases. Some people have been with Cap1 for years without a problem and suddenly they now know for sure they're going to a problem for them?

jonesMUFCforever

willstewart wrote: »

What a load of cr*p. It's nothing to do with them thinking that you'll be a bad risk one day but trying to fleece as many of their customers out of as much as possible by massively hiking the interest rates.
I myself, along with others in this thread, have handled their accounts well i.e not missed payments, paid balances off etc and still been hit by high interest rate increases. Some people have been with Cap1 for years without a problem and suddenly they now know for sure they're going to a problem for them?

If you have paid balances off then the interest rate will not matter will it?
Times have changed - if you are not happy with one provider then as long as your credit files are clean transfer to another card.

SpamValley

I got the letter too about a month ago - my so-called permanent life-of-balance rate of 7.6% APR was being doubled, despite always paying slightly more than min payment, and on time too. OK, the card was usually close to its £5,500 limit, but that's only because I was always taking advantage of the balance transfer rate and switching from cards with more expensive purchase APR rates.

Called them up and told them that whilst I don't hugely mind that 30 quid of my 150 minimum payment was going on interest, I can't accept that figure doubling, so chose to close it to new business and pay it off at the current rates. The woman I spoke to actually seemed surprised that I would choose to do this, and asked me if I was sure of how it compared to any other cards I might have - er, yes, that's why I'm choosing the option I'm choosing!