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Rate Jacking Sucesses/failures
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checked my Egg accounts and interest rate is 'unavailable' anyone had any indicator of an interest rate hike ?0
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Noticed that my Egg Money Mastercard rate has increased from 7.9% to 16.9% (an increase over over 113%). I ignored it when it happened as I wasn't using the card and it had a nil balance.
I am now using Egg Money as my primary card (for the cashback) and paying it off in full every month. Nevertheless, after reading Martin's article and this forum, I thought I'd ask them to drop the interest rate back again.
The initial reply was 'the interest rate is variable so can go up and down' but that 'it was changed in March 2009 and therefore can't be changed.' This seems a bit of a contradiction, so I've asked for full details of why they've increased it.
My stepfather also has Egg Money (with a lower credit limit) but he still has a rate of 7.9%. They are however quoting 16.9% (typical variable) for new customers (17.9% including the monthly £1 fee, which thankfully I am not being charged!).0 -
First interest rate increase note came from Natwest who were increasing it by a whopping 4%!! Thanks to Money Saving Expert - armed with my knowledge I called and asked them to retain the rate or I would leave. Was put through to the loyalty team who were emphatic that as I had been such a good customer for more than 10 years they didn't want to leave me but Natwest had decided to introduce a general increase for everyone. Anyway, they offered me a 10% reduction for 6 months which I accepted until I hung up and thought about whether I could pay off the debt. Now I have a large balance on the card and know I wouldn't be able to repay within the next year. So I called back and cancelled the card, thus retaining my current rate BUT because of the special offer I got the day before, Natwest is tied into giving me the special interest for 6 months anyway. RESULT!!:rotfl:
HSBC - Hike of 2%. Called and asked them to retain rate and asked if they couldn't to explain the increase. Got the usual response of 6 month reviews but I pointed out that they gave me a limit i ncrease less than 5 months ago so when was this 6 month check!? Anyway they went and did some kind of review and said I me the criteria to retain the current rate. RESULT!!:j0 -
Barclaycard 29.7%
No rate reduction but offered 6 months interest free
Emailed a query on line and got a call back
Have been a customer fo Barclaycard for over 20 years. Have to admit I don't know when the rate went up (I will now pay much more attention!!!) but after comparing my rate with what they are currently offering new customers I could not believe how high my rate was.
I emailed Barclaycard and they have now phoned to say that they cannot reduce the rate but have offered me 6 months 0%.
I will wait for my next statement to see if it all goes through.
Just shows that there is no harm in asking!!!0 -
Just had a letter today from Capital One saying it is increasing my rate from 7.33% to 14.58%. This really should not be allowed for existing debt.
During the snow in December I received my statement late so decided to pay online (3 days late) and then joined up to have my statements by e-mail so this would not happen again. Apart from this one occasion I have never made a late payment in 10 years! They say it is because it is costing them more to lend money! What - twice as much!!
They do however offer an option to close the account and pay off monthly at the existing rate, but this means I will not have a Credit Card which I do need at least as back-up when travelling abroad, as I don't like to keep a large amount in my debit account and prefer the protection offered on a credit card. I have been left feeling like a criminal and can understand why other contributors are so angry.
I will be calling Capital One tomorrow to discuss keeping the current rate (although there seems little chance of that) and will keep you posted.0 -
Capital One
Currently on 34.9% (increased to this in the last few months)
Since 2007
Credit Limit £1000
Balance approx. £950
Increasing to 39.9%
Received a letter from Capital One earlier this week advising me the rate is increasing to 39.9%.
At the moment, my financial situation is minimum payment only which I hope to be out of in a few months (once my partner returns to work from Maternity Leave). This is now becoming increasingly difficult to pay off as I'm barely covering the interest. In fact, I'd say over the last few months, the balance has hardly moved, decreasing by about £2 a month...
I'm going to be calling them this weekend to get my account closed and see if I can at least stay at 34.9%.
Watch this space...0 -
My wife has a Cap 1 card and has just been informed that they are jacking the rate up from 12.9% to 17.9%. She's now looking at transferring over to Barlaycard at 0% for 12 months and then 14.9%.
Cap 1 appear to be very sneaky at rate jacking or is it just me.0 -
Bank: HSBC
Previous: 19.9%
Jacked to: 24.9%
I only noticed two months ago the rate was jacked - current credit limit was £3000 but this month they increased it to £4500.
I have arranged for a balance transfer for some of the amount, will pay off the rest of it hopefully within 6 months and have just emailed them challenging this and saying I will be cancelling my card when it is paid off, will be filing complaint with the FOS (as I was not notified of the change - noticed by pure chance though I DO check my statement) and will be never touching their products with two !!!!!! sticks.
Official SOS Club Member 028 - Dry until 10/07/2010
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CutTheJargon wrote: »Just had a letter today from Capital One saying it is increasing my rate from 7.33% to 14.58%. This really should not be allowed for existing debt.
During the snow in December I received my statement late so decided to pay online (3 days late) and then joined up to have my statements by e-mail so this would not happen again. Apart from this one occasion I have never made a late payment in 10 years! They say it is because it is costing them more to lend money! What - twice as much!!
They do however offer an option to close the account and pay off monthly at the existing rate, but this means I will not have a Credit Card which I do need at least as back-up when travelling abroad, as I don't like to keep a large amount in my debit account and prefer the protection offered on a credit card. I have been left feeling like a criminal and can understand why other contributors are so angry.
I will be calling Capital One tomorrow to discuss keeping the current rate (although there seems little chance of that) and will keep you posted.
Why don't you just pay the balance off at 7.33% and apply for another card from someone who wants your business?0 -
Following financial problems a few years ago my partner obtained a Vanquis card which was to help rebuild his credit rating. After 2 years at 39% it has now been hiked to 54% and a limit increase from £500 to £1500. Fortunately we are now in a position to tell them to take a hike but isn't it nice to see that financial institutions are taking their resposibilities seriously?0
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