Rate Jacking Sucesses/failures

Fruit_and_Nut_Case

lisal0u wrote: »

Why would anyone keep a cresit card with an APR of 27.9%?!

Probably a rhetorical question but it deserves a response.

• Because they pay the full balance every month and interest is irrelevant?
• Because they can't get anything better?
• Because they get useful perks?

CannyJock

lisal0u wrote: »

Hi,

I had a letter from Virgin credit card at the weekend saying they are going to increase my APR from 15.9% to 27.9% :eek:

They aslo would not give me a reason, just that it was happening to a lot of customers! I have opted out so the interest will stay the same and the account will be closed once it is paid in full!

Why would anyone keep a cresit card with an APR of 27.9%?!

Lisa

Well, the reason I would keep an MBNA backed card regardless of the APR would be to transfer the credit limit across to a new MBNA card to increase the amount of credit available on a shiny new 0% deal.

lucyj_2

My husband and I both have cards each with MBNA.. We were sent letters stating the interest rates were due to be increased ( I can't remember the exact figures, but it was going to be costly on debt that we were working hard to repay..)... However, there was a note at the bottom that said if we didn't want the rates to change then to call them asap, which I did. The consultant I spoke to seemed a bit cheesed off that I was complaining about the increase, however they agreed to leave the rate as it was but it meant no more borrowing on the card & as soon as the card was paid off the account would be closed. Suits me, that's exactly what I was planning to do anyway!

BeautyandtheBeast_3

well virgin tried it! i had the letter saying they would increase it from 18.9 to 26.9 for balance transfers and from 16.6 to 24.9 for purchases - they offered me the opt out - needless to say i have accepted it. yay!! my rates stay fairly normal - overpayments now to virgin!!

scott_lithgows

I,ve had my rate increased on a MBNA card to 25% however all of it is on a 5.9% LOB deal.Is it worth phoning up to opt out the account or more trouble than its worth?

davestones

CannyJock wrote: »

If you paid your card in full every month, why was the interest rate increase relevant?

TBH, it's not really. However, Assuming for whatever reason I am unable to pay the balance off in full at the end of the month, I am happier knowing that I would only be paying 7.8% APR rather than close to 30%. Plus, they have lost out on the merchant fees, the chance to sell me "extras" and so on that come from regular credit card use...

scott_lithgows wrote: »

I,ve had my rate increased on a MBNA card to 25% however all of it is on a 5.9% LOB deal.Is it worth phoning up to opt out the account or more trouble than its worth?

After you have cleared your existing promotional balance do you think you will continue using the card? If you plan to close it afterwards or to never use it again, then I see little point in opting out. However, if you want to go on and use it for purchases you should probably opt-out and get a new card when the time comes.

NellyM029

I requested a apr rate reduction back in March 2010 from egg which of course they said no nd my 21.9% had to stay. Just checked my balance and it is now 26.9% no email warning!!!!!!

Am complaining but they are a horrid company i doubt a success

NellyM029

Hello
egg rate jacked me from 20.9 to 26.9%, I found ot after the 30 days and was too late to freeze it. they didnt send an email to inform me. I complained and they said they did but as a 'gesture of goodwill' they would put it back to 20.9% from July.

Not relly happy as 20.9 is still high but still...

MichelleMyBelle_2

I can go one better than everyone else who has posted - I had an Alliance and Leicester Credit Card (MBNA) which I took out around 2004. After clearing my balance a couple of times the balance was clear till I got married and used it to pay for our wedding meal last August. Couldnt understand a couple of bills later how the balance was GREATER two days after paying a big chunk! So I rang them and checked - they had hiked my APR from 11% when I took the card out to....wait for it, you wont believe this........38.9%!!!!!!!!!!!!!!!!!!!!! I tried everything I could to get a refund on the amount of interest I had been paying, I even went through through the financial ombudsman who wrote to A&L/MBNA who carried out their own investigation and ruled the APR hike was fair "in the current financial climate". Ombudsman couldnt enforce anything as they only give advice apparently. So, I transferred my existing balance to my husband's credit card (also MBNA but as he was a new customer they were offering him 0% on balance transfers!) and I closed my own credit card account. I did think it was a pretty shabby way to be treated, I had only ever made one late payment due to the very first statement coming late and I missed the "pay by date" and I worked out that if I had continued to pay my balance on my own MBNA card (was about £1400) at £70 (which was above the minimum rate as experts always advise) it would have still taken me SEVENTEEN YEARS to pay it off!

MichelleMyBelle_2

davestones wrote: »

I have just had a letter from Virgin Money increasing my rate from 21.9% to 29.9% as of June. The rate went up from 15.9% to 21.9% last year for no reason, so I have cancelled the card as they wouldn't/couldn't reduce it over the phone.

Now have a Barclaycard coming with 7.8% APR. Considering my card is used day in day out and then paid off in full every month, they have lost a very good customer...

The retail shops have lost a good customer, not your credit card company. They actually dont like people who clear their bill every month as they cant squeeze as much interest out of you than if you had an enormous bill, paid only the minimum payment every month and were looking at another ten years to pay it.