Rate Jacking Sucesses/failures

fireman1976

I was recently sent a letter by Virgin Money saying that they had become aware that I had recently retired ( by the way,on Occupational Pension not Old age Pension). They had done an appraisal of my Financial Status and immediately halved my credit limit. A week or so later I got another letter saying that they had done another appraisal and they were increasing my Interest Rate from 16.9%(I think?) to 25.9% because I was now considered a risk(didn't say that, but I knew what they were getting at!). I could refuse the rate hike but I wouldn't be allowed to use my card and my account would be closed when it reached zero. Not much choice there then. I immediately closed my account!:mad:

MSportBoy

Bank: MINT (RBS)
Previous: 16% (approx)
Jacked to: 26.0%

I have had this Mint card for 12 years, never been late on a repayment and my credit score is bordering on "Excellent". This rate hike has happended over a period of some months. Should have spotted it earlier.

When I called Mint they could not give me a reason for the increase. The call was escallated to a "Supervisor" who gave me the same line - "market conditions" and "these decisions are made by our markekting dept". I asked if they would reduce the the rate down to the 16% advertised on their website for the "typical" new applicant. The "Supervisor" said "this was not possible". In my mind this ammounts to theft and from a bank 71% owned by taxpayers!! :mad:

Needless to say I will be following the ditch and switch approach given that I am fortunate enough to have a good credit rating. For those that don't, this would be a disaster.

rosmersholm

I've joined MSE forums due to outrage - not sure if that's a common phenomenon - but I've been viewing threads without commenting for far too long!

My trouble is with Capital One. They have recently changed the APR from 22 to 32% based on the economy as many examples above have shown. When looking at capital one's new offerings - they offer a Capital One Progress Card for people who are bad credit risks or need to repair their credit rating and the card starts at 35% and drops to 19.9% APR after 17 months if customers pay on time and don't overlimit.

Now I've been a customer for so long and never missed a payment and have never gone over limit - and suddenly I'm the customer being punished. Meanwhile those with shaky credit histories have the guarantee of a 19.9% APR if they don't miss payments or go overlimit - something which I've been doing since I've had the card.

I'm incensed! Grrr. But I've sent off my grievance and am awaiting a reply. Given previous cases with Capital One - I think I'll get a template back but am so mad about it.

skintdragon

Fingers crossed you'll get a response rosmersholm; let us know how you get on.

I have just last week finally cleared my HSBC Gold Visa. To this day, I had never received any correspondence re the hiking of APR... it's something I've got a habit of looking at when I receive my statements.

Back in Nov 2008- APR was 19.9%
Now: 26.9%.

I have tried to call HSBC appealing against the hike but they would not budge, and so begrudgingly I have cleared the balance with the extortionate APR. Am so mad at myself.

BeautyandtheBeast_3

I need to be having a word with M&S - im sure they have increased the apr to 23.9 from 21.9. I am hoping that they will allow me to continue paying off at the old rate as this isnt very fair at all!

matthew2904

hi all just had one from halifax (used to be with tsb years ago but halifax have got worse than they ever were) not used the card in mounths as trying to get all my cards payed off 3 in total. called customer services first told person on the other end its not his fault as he just workes there then gave him boath barrels of what halifax has turned into. he then froze my rate as what it is for the next 6 mounths.

NinaBlay28

they are rising like no tomorrow here in US!

Former_MSE_Wendy

Hi everyone

We are looking for someone who's been rate jacked to be filmed to appear on tv in the next few weeks. If you've had your rate put up in the last few months and are happy to be on tv please can you send me a PM with your best daytime phone number and i'll give you a call.

Thanks

rosmersholm

No progress with Capital One I'm afraid and the adverts for the Capital One Progress card are boiling the blood as they are everywhere (banner ads online) I probably should clear my cookies to prevent reappearance!

It does beg the question that someone has risen above that Egg are another company who have done the same but continue to offer fantastic APRs to new custom. If the explanations about the code are correct and the clarifications that some people get are true - risk-based pricing should really affect (scored) new customers too - so "a typical APR" which has to be advertised correctly (where the majority of customers get the rate) of such a low rate means that risk-aversion isn't matching new and old customers.

Its really the consistency of exploiting customers with a long term relationship with the company. The fact about statistics relating to how often the public change current accounts is probably hoped to be mirrored with credit cards (though not the intelligent MSE public, I would add)

It probably is a panic to most customers to believe that they wouldn't be able to get any alternative credit in the current climate (less successful ditch 'n' switching) - thus companies can knowingly raise revenue based on this fear.

jahamh

Have been jacked by Halifax today up to 28.95%. Limit is only £500 so will kill the account. However, have written to Chief Exec of FSA to ask about their Treating Customers Fairly policy and to Shadow Fin Sec to the Treasury to suggest a manifesto inclusion of a flat rate of 10% on all credit card debt to free up cashflow and stimulate the economy. Have also written to my own MP and Vince Cable.

Will report back on responses as and when they come.

May be prudent to start an attack on MPs, a) due to the election and the fact that no one seems to be romping away as yet and b) due to the proposed commentary coming out of No 10.