Rate Jacking Article Discussion

pbs_2

Thanks for the message. I have just applied for a personal loan with my bank, but was turned down. Not because I have a bad credit rating, but because of affordability. Which is silly, as if I borrow the money in the form of a load, to pay off the credit card, my borrowings are exactly the same but I will be paying a lower APR so infact I could easily afford the load as my payments would be lower, but the bank do not seem to get this

skintdragon

Finally cleared my maxed out HSBC visa credit card this month.

I too had noticed the increase in APR; it was about 19.9% late 2008, and on recent statements it had shot up to a whopping 26.9%. This was done without any notifications/ letters. I tried to appeal against the rate increase several months ago but it fell on deaf ears.

I know it's probably too late now but wondered if it's worth bringing this up with HSBC with a view to some form of gesture of goodwill. Any ideas?

Cookiepops

Halifax have just pushed my rate up from 9.9 to 14.9% and I have a balance of over 3k on it!!! I don't know why they have done this, I only closed other cards a few weeks ago (including 2 Halifax) because I didnt need them and they had no balance on them. Im going to phone them, probably get the credit score response and then transfer the balance!

Cell

I can only dream of 14.9%:rotfl:

klint

Sounds like all this rate jacking may become outlawed soon, from today's news.

Cell

Not outlawed at all, merely extending the time limit to try and shift the debt elsewhere or to opt out.

The fact that the CC firms will have to let you know at least twice about the increase and associated oprtions is a step forward, however.

But in terms of increasing rates as such nothing has changed.

I shudder to think how many increases are being programmed by the CC companies in the next few months, just as happened after the last consultation.

Mrsunseeker

What we need to do is to set some dates say in a months time allowing word to get around to all go in to the banks on the same day eand complain in person at the cash desks. This would either cause the banks to shut up shop for the day or stop all other transactions going through the tills thus affecting the banks. After you have been to one bank you move on the the next quen.

some_2

I've written to two providers got a response from EGG would give me any details on the reasons and refused to uphold complaint but said it I ring or send a secure message they would close the account at the current rate of interest. I'll do both and send a letter recorded delivery. For all the government has done to reduce rates and now cards are sky high I think I'm being penalised for the banks failings since I've never missed any payments.

jimyD

If you see bankers getting more bonuses after all the £billions of bonuses they got from causing the credit mess in the first place (which they haven't been made to pay back?), this is where thier BONUSES will be coming from, bleeding people dry in this market behind the scenes to make up for the mess they caused in the property market and to keep getting more fat BONUSES!

This is not only having a terrible effect on millions of decent members of the public, it must be crippling retail too so it can't recover (it is), so the bankers blunders & greed that got us into the mess and their knee-jerk panicking reactions to the initial crash that made it far worse, are now being replaced with another load of bad decisions & really sharp fraudulent practices that can potentially cause another crash (coming soon... ?).

Renovatio

Egg have recently tried rate Jacking me with a 5% increase in their standard rate at the end of a 0% deal; i was stoozing anyway and already intended to move it to a new barclay card platinum, but i still decided to send this reply to Egg:

"Hi,

Thank you for your email on 9th of March 2010, where you outlined your intentions to "rate jack" my account; you know full well that a 5% increase is excessive!

Needless to say i will be paying off my balance, so if your intention was to actually make more profit from me, well done in shooting yourself in the foot.

Egg used to be a good card company, a market leader even, so i will retain the card and consider using it in the future when you see sense.

I have no trouble getting large limit credit cards, so for me to continue using your services it really comes down to your old advertising slogan, "what's in it for me?"