Rate Jacking Sucesses/failures

Helly_Welly_2

My Virgin (MBNA Europe Bank) Credit card opened in May 2006 with a rate of 15.9%. After six months it went to 27.5% then within another seven months to a whopping 35.1% On my balance of £6,000 I paid £230 a month off but as the interest was nearly £170 I wasn't getting anywhere. I wrote your template letter and they immediately dropped the rate back down to 15.9% in May 2010 but their final letter said they didn't owe me any interest refund so I wrote to the Ombudsman. They have said that MBNA would rather settle my complaint as an alternative to their investigation. I am getting a refund of £4,300 "overpaid" interest to May 2010 plus £150 compensation. Thank you so much for your help

ECOPRM

I've been in "discussions" with Egg about the increase of my APR from 7.9% to 12.9%.

I asked them for an explanation and this is what I got back:

"At Egg we regularly review our interest rates and we'll consider a number of factors such as the management of accounts since they were opened customers' credit profiles our costs for providing credit and the current economic risk environment. In every review rates can decrease increase or stay the same.

In line with the above information I can assure you your interest rate is determined by more factors than your personal profile and history alone. The credit information we use does not involve a formal search and as such would not show on your credit file.

This process is in line with the industry principles in relation to the re-pricing of interest rates and you do have the option of cancelling your credit card in order to retain your existing rate. If you wanted to take that option then simply reply to this secure message with your confirmation by 10 October 2010.

If you decided to cancel your account and once we've confirmed this has been actioned your Egg credit card would become a repayment only account. We believe the option to cancel the use of your card any time before 10 October 2010 is a fair one as it allows you to pay any outstanding balances at your current rates until those balances are repaid in full. Your minimum monthly payment will still be required as normal. You'd still be able to view the account online make additional payments and change your Direct Debit details/amount payable.

Unfortunately I'm unable to go into specifics as you requested.

I've logged your comments on our complaints database as feedback.

Thanks for your message."

Not much of an explanation I thought, so I quoted the UK Card Associations statement of principles to them and asked again asked for specific reasons. I got this reply today:

"The information that we've given you is an explanation. We don't have to give you the specific information that you require."

Plus a restating of the rest of the original "answer".

This leaves me with a problem, I don't want to cancel the card and, bearing in mind I've never paid interest on this card (and don't intend to), should I now complain to the Financial Ombudsman’s Service?

fluffysheep

Who Rate Jacked you: HSBC
Did you manage to get the rate reduced: Yes

HSBC increaesed rate from 22.9% to 24.9%, sent an e-mail to reject the increase and received a phone call next day saying they'd looked at my account and could reduce the rate to 15.9% and keep the account open.

jeffo1

I apoligise if this is in the wrong place as its my first time ever posting....

Rate jacked- halifax credit card

I recieved a letter in May 2009 saying they were increasing my interest rate from 22.95% to 27.95%, but I had the option of closing the account to keep it at the lower rate and just continue making my monthly payments off the balance of £3916.04. I thought that was it and carried on paying at the rate I thought I was given,that was untill I recieved a NEW credit card and then alarm bells started ringing, then low and behold yet another letter to say they were increasing again, this time to 29.95%. I started looking through all my old paper work and there it was a letter of conformation saying they are holding it at 22.95% from may 2009... and here we were Nov 2010!!!. I have contacted them (more than once) and they have now agreed to reduce my rate to the 22.95% agreed originaly and they are going to re-imberse me with the differences since 2009. the only thing is I am not sure how to work out what is actually owed to me, and are relying on there calculations....They have offered me £200, but some how this does not sound right to me...Any one any idea how I could work this out myself.....Thankyou.

UPDATE: They have now offered me £400, well actually they have paid this amount off my account. Mmm still not sure what is going on, how much are they in the wrong?

suttongirl136

EGG
MBNA
Both of these had reasonable interest rates when we took them out MBNA in particular we had used for about 20 years, then they hiked them up to 19.9% and 21.9% respectively and that was only if we did not continue to use them if we were to continue they went up even more to just under 30%. I don't consider us to be high risk we are middle aged with own home and never in our lives missed a payment on either mortgage or credit card and our score on Experian is 999 out of 1000. So we have decided to take a lump sum out of our miserable pensions and pay them off altogether. I must say that I am disgusted at the lack of morality considering that the bank rate is lowest for a generation. But I suppose that is just typical of the current banking ideology.

John_Pierpoint

The increase to 60 days in the right to freeze the debt and freeze the interest rate is being implemented this month - according to Martin's weekly Email...

Is it just a coincidence that the two big banking groups to do it last are the ones most in hoc to us the taxpayers?

RBS/Natwest & BoS/Halifax/Lloyds-TSB, perhaps they have cut back on the ordinary staff so far that it is difficult to keep up to date?

or

They need every penny they can get to pay the bonuses.
(The Lloyds boss is in line for a 2,000,000 bonus of someone's money).

Don't blame the wicked capitalist shareholders - they are getting zilch too.

Dee_cb

Barclay Card have just written to me to tell me my interest is going from 14.9% - 19.9%. I worked it out its going to put an extra £16 a month interest on my balance. Do you think it will be worth me calling them to see if I can close the account but continue to pay the debt of at the 14.9%? If I do close the acount but repay the debt will this have any sort of affect on my credit rating? As I'm trying to re build it at the moment

Bush_Monster

Who Rate Jacked you: Egg Money
Did you manage to get the rate reduced: Yes, 26.9% back down to 19.9%
Did you get it back after a letter or did you go to the Financial Ombudsman: After a complaint online

Egg did write to me back in Sept 2010 about the proposed rate jack from 19.9% to 26.9% due to "Customer Credit Profiles" and "costs for providing credit in the current economic environment" and provided the option of closing the account within 30 days to keep the current rate.

I have to say I'm pretty useless at taking notice of such things , but really noticed he difference on my account as I'm trying to pay off around £150 a month above the minimum payment and was getting nowhere on my balance of £5200.

Went back to them in December 2010 to ask to take up the offer. Obviously I was too late. Thanks to the great advice on this site I argued the new UK Cards Association state 60 days not 30 days notice and at least 2 notifications of a rate jack and not just 1. I also wanted to know why I had been targeted, having been a good customer for nearly 10 years with Egg. They didn't adequately respond, so I said I would formally complain and then go to the ombudsman. Was just preparing my complaint letter (based on the template on here), but have a letter from Egg today to say they do not uphold the complaint, but as a gesture of goodwill, will reduce my rate back to 19.9% as long as I stop using the account. So they do really accept my complaint

I perhaps could take further, I see some have got compensation from the ombudsmen, but it was kind of my fault too, so I'm happy. Interestingly also got a note from my other card holder, Nationwide this week for an offer of a credit limit increase, so think I will balance transfer them as they are only 16.9% anyway.

Thanks MSE. :money:

bbuckle

Who Rate Jacked you: Halifax
Did you manage to get the rate reduced: Yes, 22.45% back down to 19.95%
Did you get it back after a letter or did you go to the Financial Ombudsman: After a phone call to opt out.

Received a letter informing that the rates on my Halifax one card were increasing to 22.45% (from 19.9%) on 31st March. Rang to opt out and close my account, and had the increase removed straight away.

NtG

Halifax said they were 'jacking' me from 13.9% to 18.95%

Thanks to the letter template that I copied and sent, they have apologised, returned me to my previous rate, returned the excess interest I paid this month and given me £25 for 'inconvenience'.

When I first called to complain, I was given the option of a personal loan which was £80 per month more than the minimum on my account. The letter really had them take a different take on it. I am indebted to you for this advice Martin, many thanks:j