My life time balance transfer rate has been hiked

marktheman

Hello,

I've a Capital One credit card which I've used for many years.

About 18 months ago I took out a 0% for 12 months deal.

I called them in June this year to find out whether they had any life time transfer rates I could migrate to.

The operator informed me that they could move my existing balance plus any further balance transfers to 7.89% for life of transfer.

I took out further balance transfers which took my borrowing to £9,000 with a £15,000 credit limit.

At least twice during the conversation I said "this is definitely life of balance?", to which the operator confirmed "yes".

Today, to my horror, my rate has been increased to about 15%.

I phoned and was told that I was a sent a letter advising me that I needed to opt out of the rate hike to keep my existing rate.

What can I do when the supervisor rings me back to discuss this further?
I thought as any rational person would think that "life" meant "life" and I could sit back and make my monthly payments without concern.

By the way I have never missed a payment - ever.

Thanks,

Mark

izools

You can keep the LOB offer, that is not an issue.

Credit Card companies are allowed to change their APR as long as they provide an opt out option.

You have the choice of keeping the low LOB rate and not being able to use your card any more, or accepting the new interest rate and continue to be able to use the account.

If you only used the card for the LOB it shouldn't hurt "Opting-Out", as you won't need to use the card anyway.

My advice would be to opt out and get another low purchase rate card for purchases, so that not being able to use the Cap1 plastic isn't an issue.

Good luck, and keep us posted

marktheman

They said that they wrote to me in July, only a few weeks after taking out the LOB - if I received the letter then I probably binned it thinking it couldn't apply to me. I was told the opt out should have been made by 20/8/09, so I've missed the deadline that I wasn't aware of or thought would apply to me.

ILW

You could grovel, but in the end it is hardly their fault if you don't read your letters.

marktheman

But why would any reasonable person suspect that a life of balance transfer rate could be altered? I'm not talking about a standard variable rate.
If I took it out in June would'nt it have been fair and reasonable for them to advise me that the rate will be reviewed next month and look out for a letter.

YorkshireBoy

marktheman wrote: »

But why would any reasonable person suspect that a life of balance transfer rate could be altered?

Because the T&Cs governing your account, that you agreed to when you signed up for it, state that they can change those T&Cs after first giving you notice.

if I received the letter then I probably binned it thinking it couldn't apply to me

On a more general point, if you have a financial relationship with a company you should maintain a correspondence file...something which I'm sure, having been bitten, you'll do from now on?

If you feel hard done by, there's always the complaints procedure.

marktheman

Does that mean my 5 year fixed rate mortgage can be changed at any time because somewhere in the T&Cs it says that they can do what they like as long as they give notice?

ILW

They could for example offer to put you on a differnet deal and ask you to confirm that you wish to stay on the existing one. If you chose not to reply i would suggest that you would need to shoulder some of the blame.

TFD_2

I don't agree that they should (or would intentionally) change a LOB rate. It seems more likely that they've not set it up as LOB.

YorkshireBoy

marktheman wrote: »

Does that mean my 5 year fixed rate mortgage can be changed at any time because somewhere in the T&Cs it says that they can do what they like as long as they give notice?

The answer to your question, literally, and as you've written it, is yes they can.

YBS say, in my savings account T&Cs, that they can stop me removing £5,000,000 of my savings if they feel it will place the institution at risk. I think that's unfair, but it's something I was aware of when I gave them my savings.

BTW, your time this morning would be better spent penning a formal complaint than posting on here. Good luck with it.

marktheman

I have now found the letter, filed in Egg folder by mistake.

It says this letter is about your standard interest rate.

Purchases inrease to 20.35%
Bal transfers to 15.18%


On the back it says increased from 18.17% and 13.72% respectfully.

My rate was a life time balance transfer rate at 7.89%

No mention that this was going to be affected.

Mark