Rate Jacking Article Discussion

mjm3346

suebron wrote: »

I think the APR rise is because I have recently reached 60 years of age and retired. Age prejudice perhaps?

Income prejudice perhaps, unless your pension income is as good as or better than your working income was.

REDMADCURLS

Hi

I didn't receive notification from MBNA re hike but today when I received my statment, I noticed a hike so I called them.

They advised they wrote to me in Dec, I explained I didn't get this letter or indeed a statement in Dec (prob due to snow). I asked to opt out, close account and continue to pay at old rate............they said 'that option is not available on this card'. I didn't know that was possible.

Has anyone else had this 'explanation'?

fotoman

Is this the highest rate jack?
We all know that Lloyds TSB are in deep trouble financially, but why should it be me that has to bale them out?
My old interest rate was high enough at 17.95%; it's going up in June 2011 to 22.45%. That's over 25% !!
Luckily for me, my credit is good and I shall be closing the account and giving my money to one of the other cards.
It's typical of British businesses everywhere. Rip off the customer!

Cell

When Egg last had a go at me it increased from 20.9% to 26.9%, so it's not that uncommon.

PoppyHoppy

I've followed Martin's suggested complaint procedure with this. Homebase and Santander (Debs) have rate jacked me. I missed the Santander notification amongst the advertising drivel the wack in with the statements these days. And Homebase didn't even advise me.
I've sent the first complaint - asking for specific reasons why. Neither addressed this at all. Complaint 2 ready to go in the post now. Basically saying they've not addressed my issues at all and further threat of FOS.
Anyone else gone as far as FOS with rate jacking yet?

SB_1234

Effectively, these card companies are making you and "offer" to change your current rate and continue borrowing or keep your rate and wind down the balance. This sounds like something I learnt at university...they are offering a new contractual agreement.

Google: Acceptance of Offer by Post

I am no legal expert, but if someone reading this has more knowledge than I do, can they correct or affirm my thinking.

Basically, they send you a letter/statement with the changes and then hope that you do not contact them and then jack your rate. Now, that seems slightly unfair, because what if the letter never reached you? What if you do not have the capacity to understand this change? Should there not be a return slip or something stating that you accept or decline the offer?

This is a fundamental change to the contract right? Or am I wrong?

KindredSpirit

Is there a petition to petition for the credit card companies to have rates locked at say no more than 5% above the bank rate?. It would allow debts to be reduced quicker, more money free to boost the economy...rather than having three quarters of my monthly payments going on interest, I would rathersome of it went on keeping local business afloat and at the same time reducing my debt.

Just found one on the e-petitions site - Extortionate Credit Card Interest Rates by Mark Lipscomb :-) Just need everyone to sign it!

All we need is just one petition to reach 100,000 signatures, it will be eligible for debate in the House of Commons.

Does anybody know if there are any MPs fighting for the same?

mbatey

I have a Halifax One card at 6.95% - not a bad rate.

BUT last year they wrote to me to say the interest rate would from now on be linked to BoE rate, ie base + 6.45pp.

So what happens when the Bank raises base rate? I presume I have the opportunity to reject the Halifax hike at that point?

It's almost as if they want people to think they can't reject rate rises!

(I don't use the card for spending anyway - just treat it as a loan and pay off a consistent amount each month - so not being able to add to it wouldn't bother me.)

[mbatey]

Cell

No, you can't opt out of a 'base rate' increase because it applies to everyone and is therefore not risk based re-pricing.

newlynjim

Hi, I just got a call from a Company called Consortium Reclaim, they claim to be able to wipe my credit card debt if it is over £1000 and if the card was taken out before April 2007. apparently if so the card company will probably have broken our contract by doing one of several things, ie, hiking the interest etc without my consent. Consortium Reclaim reckon they deal with solicitors who will take the case to court and that the debt will be wiped if it transpires that the card company has broken the contract. Now this sounds all too good to be true and I wondered if anyone has any knowledge of this?