Rate Jacking Article Discussion

TFD_2

jimmywx11 wrote: »

No-one ever seems to mention that Credit card companies, also CHARGE sellers about 2%-3% of any purchases AS WELL! These charges are passed on to everyone with increased prices.

Not true, the merchant (shop) pays a percentage - usually between 1.5 and 3% to a merchant services provider. This is split between the merchant services provider, the card provider, and also Visa or Mastercard. The card providers cut is nothing like 2-3%. Without their small cut, they wouldn't be able to offer free facilities for those that choose to pay off in full each month, as there would be no margin in it for them.

jimmywx11 wrote: »

Egg increased my APR % years ago for no reason except they wanted to. without telling me even though I ALWAYS paid on time... so I refused to pay them on principle.

There reason would have been that the APR on a credit card is variable and they reserve the right to do this.

jimmywx11 wrote: »

3 years later after paying a debt collector £50 per month (I tell them I’m on jobseekers so the interest is held. so its at 0 %)the debt is down to almost 7000. eventually I will have paid this off but will have saved thousands in interest. HAHAHAHA. sure I’ll never get credit again but I’m happy about that too. And I hope I contribute towards Eggs, collapse as well.

Wow, well done, you've destroyed your credit rating by refusing to pay a debt you built up knowingly. Hahahahahaha indeed.

jimmywx11 wrote: »

I think what these card companies are doing is just plain corrupt. That it is allowed to happen, highlights how far the corruption goes. The fact that its mainly the poor, who have to worry about these things is also abhorrent to me. If you are struggling with your finances then they will increase your rate!?

Whereas not paying your bill is less corrupt? If you're poor, and struggling with finances, don't rack up £7000 on a credit card.

jimmywx11 wrote: »

DER --- DOES --- NOT --- COMPUTE!!

Indeed, that sums up your intelligent well thought out post. Good work

no_cally_doe

TFD the more I read your posts the more I appreciate your no nonsense approach and I have to agree with the above.

I am in the mind that If you rack up debt regardless of circumstance you should honour payment. Entering a contract without reading the T's & C's will bring a S**t Storm if your not careful. They increased the rate and I have sympathy for that but surely if you didn't spend anymore on the card your existing debt will remain at the current APR? Its only if you keep spending that the new APR will be applied to new debt.

Its situations like yours that make the financial market worse for everyone.

TFD_2

no_cally_doe wrote: »

TFD the more I read your posts the more I appreciate your no nonsense approach and I have to agree with the above.

I am in the mind that If you rack up debt regardless of circumstance you should honour payment. Entering a contract without reading the T's & C's will bring a S**t Storm if your not careful. They increased the rate and I have sympathy for that but surely if you didn't spend anymore on the card your existing debt will remain at the current APR? Its only if you keep spending that the new APR will be applied to new debt.

Its situations like yours that make the financial market worse for everyone.

Thanks for the positive review

I've got sympathy for situations like this - Cahoot stung me for a massive rate increase on a £20,000 flexible loan, and my then poor credit rating meant I couldn't move elsewhere. 19.9% on £20K wasn't a laughing matter. Whilst finding the way they did this quite underhand - it was a massive increase from the original 6.9%, I was equally annoyed at myself for not realising that the interest rate was variable and could increase so heavily.

What I don't have sympathy for is the way the poster went about resolving the issue - it seems a very childish attitude.

no_cally_doe

13% increase on 20k is certainly not a laughing matter but guaranteed you won't ever be unaware of the dangers in rate jacking again. The only reason I get frustrated reading posts like the above are because of the other posters on this forum doing everything possible to get out of debt.

Having the not paying because its not what I want attitude is detrimental to everyone and its actually partly due to people not paying debt they built that see's the APR increases. Vicious cycle me thinks

Cell

TFD wrote: »

I've got sympathy for situations like this - Cahoot stung me for a massive rate increase on a £20,000 flexible loan, and my then poor credit rating meant I couldn't move elsewhere. 19.9% on £20K wasn't a laughing matter. Whilst finding the way they did this quite underhand - it was a massive increase from the original 6.9%, I was equally annoyed at myself for not realising that the interest rate was variable and could increase so heavily.

I also have a Cahoot flexible loan and suspect that this falls under the radar of the new 'Fair Pricing' principles which seem to apply to credit cards only. Were you offered the option of closing the account when the rate went up?

Has anyone ever received a rate CUT from a Cahoot flexible loan? Variable only ever seems to mean one thing - up!

TFD_2

Cell wrote: »

I also have a Cahoot flexible loan and suspect that this falls under the radar of the new 'Fair Pricing' principles which seem to apply to credit cards only. Were you offered the option of closing the account when the rate went up?

Has anyone ever received a rate CUT from a Cahoot flexible loan? Variable only ever seems to mean one thing - up!

This went up about 3 or 4 years ago. There was no option given to me at the time.

It appears to me that they increased the rate across all customers - those with a good credit rating took the debt elsewhere, and the debt they were left with was profitable as people were trapped.

As the Flexible loan is now a defunct offering, it's safe to say they won't be cutting any rates...

jimmywx11

Huh? I don't see why you would take a corporate companies side and not someone who has basically been done over by legalized muggers. They increased my APR without telling me! I should have checked but I just didn't think they could do that.

Do you work for a credit card company perhaps? I was treated unfairly and decided to do what I think is right. You surely in good conscience cannot condone the practices of these people...... can you?

TFD_2

jimmywx11 wrote: »

Huh? I don't see why you would take a corporate companies side and not someone who has basically been done over by legalized muggers. They increased my APR without telling me! I should have checked but I just didn't think they could do that.

Do you work for a credit card company perhaps? I was treated unfairly and decided to do what I think is right. You surely in good conscience cannot condone the practices of these people...... can you?

Having been in business for many years, I don't look at everything from a consumer's point of view. I also think that ignorance is no excuse. And I don't agree that what you did is right at all - to stop paying a debt that you legally owe.

jimmywx11

Well that’s very nice for you... as long as people with money, mug people with no money. Your not bothered by that? is that because you think if people are not financially up to speed they deserved to be robbed? you sir are part of the problem not the solution!!

BTW I am paying the debt....... I am just not paying the interest .

TFD_2

jimmywx11 wrote: »

Well that’s very nice for you... as long as people with money, mug people with no money. Your not bothered by that? is that because you think if people are not financially up to speed they deserved to be robbed? you sir are part of the problem not the solution!!

BTW I am paying the debt....... I am just not paying the interest .

If you try reading my other posts, you'll understand that I got put in a similar situation. The way I handled it is what's different.

Your post got my back up to start with - your attitude was poor, and your comments regarding the fees were completely inaccurate.

As for me being "part of the problem" - no idea how you came to that conclusion. I just understand that businesses have to make decisions from a commercial point of view.