Extortionate Credit Card Interest Act Now !!!

euronorris

At what point did the OP state they didn't or weren't going to repay their debts?

I can clearly see that you don't agree with the interest rates being unreasonable, and that's fine. But I do think they are extortionate, and far more than is required to cover their costs AND make a profit, as do many others.

We are also entitled to voice that opinion and try to address the issue if we so choose.

never-in-doubt

TheExpert wrote: »

I am amazed at the fact that so many people have such a constrained understanding of relatively simple economic principles.

Including yourself by all accounts? Imagine coming here calling yourself 'expert' to give advice that is utter tosh! Who taught you? I'll be sure to avoid the companies you worked for as they have serious training issues :eek: :eek:

TheExpert wrote: »

The reason these banks charge over 30% is not to cover the costs of any gimmicky benefits (any cards with decent benefits would not offer such rates). The sole reason these rates are in place is because of the huge numbers of people who borrow the money and then charge off with something typically in the region of Credit Limit + 10%. Unfortunately, these people mean that the rest of us have to pay for their actions with huge rates.

NOT TRUE! They charge us 30% because they classify it as risk-per-rate. That does not give them a right to charge extortionate rates based on their own assessments of their own failed past. Laymans terms, if a bank asks you to pay 30% you say no thank you and walk away - simple. It has absolutely no bearing on specific consumer debt and never has done and never will do!

Maybe you miss the point somewhat, I have a £300k mortgage, most the people on here owe say £10-£30k so that means between 10-30 people at least before one of me would have to get in debt to hit the same value!

Forget it - revolving credit has not caused a recession and never will do. Look at the bigger picture, learn the facts and try again!

TheExpert wrote: »

Certain strata of the population within the subprime credit card business (and I am talking mainstream providers here) have rates of up to ~50% Charge Off in the first 12 months of having the card. Simply put, half of all these people get a card, max it out within a few months, then go delinquent, eventually default and have absolutely nothing you can claw back. Before you lay the blame at the banks' doors, maybe you should drive around come local council estates and see where the root cause lies.

!!!!!!? How dare you! Are you saying that everyone that lives in council accommodation is bad? You disgust me and that comment confirmed just what an arrogant idiot you are. I actually earn a very good salary, have a fandabbydosie house and no debt - oh, for the record I came from a council estate and am not ashamed of it nor would I condone comments like that - put it another way, I dare you to drive round the 'council estates' gobbing off like that and see how long you last!

Council estates are not full of fraudsters, contrary to your obvious daft belief! Expert I ask......

TheExpert wrote: »

P.S. Yes I do have extensive banking and consumer lending background. P.P.S. No, I do not at present work in a financial services/banking-related industry and haven't done for a while.

I dount it very much, you have no idea of the industry going on this post so maybe try again or come back with some hard facts - you cannot because you're wrong!

Plain and simple!

Arrogant fool. :eek:

CannyJock

never-in-doubt wrote: »

I actually earn a very good salary, have a fandabbydosie house and no debt

Are you the third Krankie?

never-in-doubt

CannyJock wrote: »

Are you the third Krankie?

Nah - i'm the original and best, eye see yoooo Jimmy :beer:

savagej

Is there not provison in law I think in the CCA to complain to a court that the rate of interest on a credit agreement is extortionate and the court then has the power to decide a rate were it agrees and it thinks it appropriate?

never-in-doubt

savagej wrote: »

Is there not provison in law I think in the CCA to complain to a court that the rate of interest on a credit agreement is extortionate and the court then has the power to decide a rate were it agrees and it thinks it appropriate?

Mate this all falls within the parameters of the Unfair Contract terms but is costs way too much so it is never utilised, basically it's cheaper to pay the higher APR! lol :beer:

Its not in the CCA.

tryingtoruletheworld

Whoa! This discussion has gone a bit crazy!

I think the main point the OP was trying to make is about the unregulated increase in APR's once you already have used the card. I full intend to pay my credit card off, but it still annoys me that it went from 14.9% to 29.9% APR in one month!

How many services can you purchase, that are allowed to double the price in the middle of the contract? Can you imagine buying your car insurance, and them doubling it 2 months in?

I know the financial market is different, and we are all responsible for our own debt, but the banks should act reasonably too. We, as the tax payers, own 70% of one bank. So we have debt with them, pay them interest, they spend said interest, then we pay for them again through taxation to bail them out, and then they up the interest rates. That is a little out of order!

never-in-doubt

tryingtoruletheworld wrote: »

Whoa! This discussion has gone a bit crazy!

I think the main point the OP was trying to make is about the unregulated increase in APR's once you already have used the card. I full intend to pay my credit card off, but it still annoys me that it went from 14.9% to 29.9% APR in one month!

How many services can you purchase, that are allowed to double the price in the middle of the contract? Can you imagine buying your car insurance, and them doubling it 2 months in?

I know the financial market is different, and we are all responsible for our own debt, but the banks should act reasonably too. We, as the tax payers, own 70% of one bank. So we have debt with them, pay them interest, they spend said interest, then we pay for them again through taxation to bail them out, and then they up the interest rates. That is a little out of order!

You're spot on mate - the thing is with any variable credit rate (most credit cards) the rate can change mid-contract, like a mortgage, and this is where they have us by the 'testes'.....

yet again the banks that we own dictate to us! Kinda like me going to my manager and telling him that he aint having a week off in the summer.....

savagej

It can be done under the CCA 1974 this is a link to a copy of the act and it is s.137-140, but as you said not sure how much it would cost to raise an action. Certainly here in Scotland if you are on a Social Security Benefit you can raise and lodge documents within the Court system for free. The Court has the capacity to look at a number of factors in deciding if a credit agreement is extortionate, it is all mentioned in the sections above.

http://www.johnantell.co.uk/CCA1974.htm

never-in-doubt

savagej wrote: »

It can be done under the CCA 1974 this is a link to a copy of the act and it is s.137-140, but as you said not sure how much it would cost to raise an action. Certainly here in Scotland if you are on a Social Security Benefit you can raise and lodge documents within the Court system for free. The Court has the capacity to look at a number of factors in deciding if a credit agreement is extortionate, it is all mentioned in the sections above.

http://www.johnantell.co.uk/CCA1974.htm

The CCA is not be read as a guide to learn the law..... the law is its own function and the CCA conforms to it, therefore when you refer to s.137-139 (there is no s.140 - it is a summary of 137-139 if I recall and the new CCA includes ss.140 a,b,c) of the CCA I still think you're missing the point. No mainstream lender would ever be done for this, moreso because they are regulated and therefore most judges would in the first instance follow protocol, by sending the case first of all to the FSA for them to deal accordingly. Then it would be sent to Trading Standards and last resort, would a judge be involved.

Right tracks but I think extortionate (as in extortionate credit bargains) refers explicitly to non regulated agreements although this doesn't seem to be the case with the CCA guidance which is why I think most judges don't touch them.

Loan sharks, now they would fit into the extortionate category :rotfl:

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Edit, thought as much mate. Just done my research and found what I was looking for. The CCA2006 addendum has the following addition:

52. Section 22(3) repeals sections 137 to 140 of the 1974 Act, which permit the court to re-open or set aside a credit agreement if it finds the credit bargain to be extortionate.

Found here: http://www.opsi.gov.uk/acts/acts2006/en/06en14-a.htm