Lloyds TSB credit card interest rate increase

cashflow

Just had a letter from Lloyds TSB which states that the interest rate for my card purchases will go up on the 30th October to 1.597%; an APR increase of 5%!!

Engineer1

Hi
Yes I had a letter this morning my APR has gone up by 5% pa. I telephoned to complain as I have a £14k limit and have just paid off over 10k and only have £1k left on the card - I said I am a good customer always pay on time and more than the min each month why are they doing it. Their response was it is a review from time to time and no reason. I said I would cancel my card and my current account which is also a well run account and has several £k in it. If this is how they treat good customers god knows how they treat bad customers. Something should be done because they were not bothered that they were about to lose a good customer.:mad::mad::mad:

Cash_Flow

cashflow wrote: »

Just had a letter from Lloyds TSB which states that the interest rate for my card purchases will go up on the 30th October to 1.597%; an APR increase of 5%!!

With a screen name like that I can't blame them

BigDave81

Happening with a lot of cards at the moment, see the rate jacking article.

Paul_Herring

I said I would cancel my card and my current account which is also a well run account and has several £k in it.

I doubt that
1) it would have much impact
2) you'll follow through with that threat.

I telephoned to complain as I have a £14k limit and have just paid off over 10k and only have £1k left on the card - I said I am a good customer always pay on time and more than the min each month why are they doing it.

Holding over £11k on a card for months does not automatically mean you're a good customer; indeed, in the current climate, it suggests the opposite. (Paying lots of unnecessary interest on a revolving credit card balance != good customer.)

Engineer1

No you don't understand my account goes up and down some months I spend up to £10k and then it goes down to £1k the next month as I pay off large sums each month and that's what I am saying - I never am late with payments, I use the card alot, they make some money out of me on interest, I never go over my limit etc etc.

INT1

There are lots of "Good Customers" that have had their APR's increased.
Me including even when I settle in full each month!

They just want to make more money out of you if you don't settle in full or forget to pay on time!

BigDave81

You are not a good customer then, a good customer is someone with a lot of money owed on the card who makes minimum payment

Moggles_2

If you don't always pay off your balance every month, you were already forking out quite a bit of interest unnecessarily. If this latest interest rate rise spurs you to tackle that, Lloyds TSB has done you a favour, IMO.

With today's online services, it's never been easier to keep track of cc spending than it is now. If you only ever spend what you can afford to pay back on time each month, you'll never pay any interest

Paul_Herring

BigDave81 wrote: »

a good customer is someone with a lot of money owed on the card who makes minimum payment

I think you are confusing the terms "good" and "profitable, if they don't default."

While not necessarily mutually exclusive, one does not imply the other.

BigDave81

Yes ok there is that but still someone who uses their credit card and pays in full every month paying no interest charges would not be deemed a good customer by the credit card company as they are making no money from them.

They are only interested in the profit at the end of the day.