Rate Jacking Sucesses/failures

ruthc_2

We had this problem with MBNA last year. When I spoke with them they went through all the in's and out's of our bank accounts and said we had a deficit of £800 a month, which was news to me, and put me through to their debt management team. Once through the assistant said "hello I understand you have a deficit of £1500 a month"! We have investment properties, all of which are in negative equity which does not worry us as they are for the long term, but unbelievably the same assistant suggested we sell them to "alleviate our debt worries". I asked if he was an FSA advisor or trained remotely in that field and he said no.

This had to go through the financial ombudsman as MBNA's rate had gone from 15.9% to 29.9% taking the monthly payments from around £175 to £300+ and then MBNA kindly offered us 33% to allow us to continue using the card which we hadn't done for many months or sign up to 29.9% with the account frozen and the interest rate frozen too. Eventually MBNA caved in and gave us 12.9% fixed for a year (which is up any day now) and £550 credit to our account. This is money they had taken by hiking up the rate in the first place but we could then not touch!

Since then we've had same situation with Virgin. Unfortunately at the time I just didn't have the fight in me to do seven rounds again and so signed up to the fixed/frozen/stuffed at 30% deal.

We will all, one day, get these cards paid off and when that day comes..............look out credit card workers as there'll be no jobs for you!

Ruth

skint_but_working_on_it

Rate jacked by Egg about a year ago but was allowed to freeze the rate for the life of the debt if I cancelled the card. I was only paying off not using the card so agreed to cancel it. Was paying 16.9% on about £4k (cleared about £1k since then) - only minimum payment so still a long way to go but at least it's a success story so far ... as long as they don't try to hike me again!!

Not a hike story but they're getting some airing so I'll share - MBNA/Virgin :mad: Was told my interest rate was 34.9% on a £5k debt (my own fault - cash withdrawals!!). As my income is erratic (!) I didn't have the money to pay the bill on time so rang to ask for a little leaway (a matter of a few days). MBNA's idea of "leaway" was to blacklist me :eek: and give me a loan for the full amount of the debt!!!!! No amount of discussion would budge them ... so I got myself two 0% cards (Asda and the Post Office) and split the debt over those so I'm interest free until 2011. Stuff MBNA!!!

ChrisRT

Jacked by: Halifax
APR: from 16.9 to 22.9 then recently to 27.95
FAILED

I've been a customer of halifax for over 20 years, I was busy paying off a card which had been up to 3000 in the past, first rate hike was @ 1500ish owing, last one came a week or so ago saying it was going to 27.95 and I could ring them up and close card to stay on old rate (at least they pointed that out in the letter).

I had just paid off £800 in one payment, so not sure why they felt I was high risk!

Anyway I rang up and asked why, was given the usual guff so asked to close my account. Apparently she'd had a lot of the same request that week, so i guess a lot of us have been regraded bad. Seems crazy though, they've been getting interest off me and no repayment issues so why drive me off!

CD211

I must say that I am a little confused how the system works. I accumilated personal debt whilst trying to keep a failing business afloat. Never missed a payment... may have been late once or twice but Im behind on nothing. Ive since left the business and taken full time employment to ease the burden but the constant hikes in interest where getting too much. I have approached MBNA an a number of occasions not asking but begging for help only to be told "No, there is nothing we can do for you and by the way we have just increase youe interest rate by 1%"
My minimum payment has just increased by £200 and I cant afford to pay! Had they have left the rate alone I could have managed, It would still be difficult but I would manage.... Ive never asked for handouts and as a Director of a business I was expected to do all I could to keep people employed..... who is out there that can help me that is not out to make a few quid in the process?

immoral_angeluk

Egg Card
2 increases in 3 months. The first from 17.9 to 23.9.. the second received the day before yesterday from 23.9 to 26.9. The card's at £0 balance so will be cancelling as soon as my replacement Barclaycard comes through.

TPAOY

Wrote to the card supplier on three occasions as they tried to jack my rate from 17.95 to 21.95%.

Used the template letter with a few changes to suit my own circumstances and got them to agree to keep my rate and the card is still open.

They didn't appear willing to go to the FSO, which I advised I would be happy to do.

rosmersholm

Breaking news!

After rate-jacking me last year to 26.9% from 21.9% - Egg have dropped my APR rate to 21.9% again without me having to ask them to do it.

I have a feeling it is because I paid off the balance and haven't used it for 6 months - maybe they want to start earning money with me again!

geranium72

Had a rate jacking letter from Bank Of Scotland - my Union brand credit card going from 15.9 to 20.95%.

I rang to close the account and freeze at 15.9 and was told that they could leave the card open and at the current rate so accepted- was very surprised! I have never missed a payment or been late but do have significant debt overall

She did say that didn't mean they may try to increase again but I would still have the option then to close if that happened.

littleowen

I have had a Bank of Scotland credit card for some time and since the bank crisis they have stitched me up good and proper. They reduced my credit limit without giving me written notice which took me over the limit. I made what I thought was sufficient payments to get me out of the mess and I then incurred a further charge on my account relating to a previous period which again took me over my limit. Do you get the picture! As fast as I tried to put the account straight they managed to add something else on.

I have incurred several rate hikes and the last one is the first formal notice I have received normally it was just applied to my account. They wanted to increase from 22.95% to 27.95%!!!!! I read Martin's tips and telephoned them. They offered to keep it at the current rate for 6 months. They then mentioned that I perhaps might want to speak to their loan department to pay it off. I decided in the end to close the account and pay off the debt as soon as I could. I have agreed a set direct debit amount and am free to make extra payments as and when I see fit.

For me this was the best option so thanks Martin for your advice.

Just to let you folks out there know, the Bank of Scotland has connections with Sainsburys Bank so if you have credit cards with each, keep and eye on them.

Karen108

I received a letter from Halifax in March advising me that the compound annual interest rate on my card would increase to 17.95% for purchases and balance transfers from the date of my April 2010 statement.

The letter said that if I wanted to stay on the existing rate I should ring a number before 16th April.

It was not clear from the letter if this new rate would apply to the exisiting balance or just to new spending. The current rate is 15.94%.

I have been a customer of the Halifax for many years and have always paid my bills on time.

I phoned them this morning and was advised that yes the new rate would be applied to the outstanding debt from this month. In that case, I said, I would like to close the account.

I was then told that because I was a long-standing customer they would keep the rate at the existing 15.4% and so I didn't have to cancel. They also tried to sell me a debt consolidation loan.

My advice is don't let them get away with it - vote with your feet.