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When credit card providers raise the APR...

Are they required to offer to keep you at the previous rate provided you stop using the card and pay off the balance?

Also, would they expect the whole balance settled at once?

Comments

  • cifpower
    cifpower Posts: 6,502 Forumite
    If they want to raise the APR they have to give you the option of keeping your old APR on the condition that you never use it again. You can continue paying it off as normal but once the balance is cleared the account will be closed and marked as settled on your credit file.
  • cifpower wrote: »
    If they want to raise the APR they have to give you the option of keeping your old APR on the condition that you never use it again. You can continue paying it off as normal but once the balance is cleared the account will be closed and marked as settled on your credit file.

    Cheers for the reply.
    I've just read the letter over again to check and they definetly did not offer that to me. Just a short sentence saying what my new APR would be. Had they offered that option to me I'd have gladly taken it.
  • LeeSouthEast
    LeeSouthEast Posts: 3,822 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    They don't have to offer it for it to be there - just ring them and tell them you reject the rise.
    Starting Debt: ~£20,000 01/01/2009. DFD: 20/11/2009 :j
    Do something amazing. GIVE BLOOD.
  • oscar52
    oscar52 Posts: 2,272 Forumite
    They don't have to offer it for it to be there - just ring them and tell them you reject the rise.

    Actually, they do have to make the offer in the letter. Is this a recent letter? If it is pre Jan 09, then the opt out was not in effect then.
    No Longer works for MBNA as of August 2010 - redundancy money will be nice though.

    Proud to be a Friend of Niddy.
    no idea what my nerdnumber is - i am now officially nerd 229, no idea on my debt free date
  • oscar52 wrote: »
    Actually, they do have to make the offer in the letter. Is this a recent letter? If it is pre Jan 09, then the opt out was not in effect then.

    It wasn't even really a letter, it was just printed in tiny letters beneath the statement information. I got that through in June 09
  • oscar52
    oscar52 Posts: 2,272 Forumite
    It wasn't even really a letter, it was just printed in tiny letters beneath the statement information. I got that through in June 09

    I may be wrong, but that wouldnt really count as official notification.
    No Longer works for MBNA as of August 2010 - redundancy money will be nice though.

    Proud to be a Friend of Niddy.
    no idea what my nerdnumber is - i am now officially nerd 229, no idea on my debt free date
  • LeeSouthEast
    LeeSouthEast Posts: 3,822 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    oscar52 wrote: »
    Actually, they do have to make the offer in the letter. Is this a recent letter? If it is pre Jan 09, then the opt out was not in effect then.

    What I meant was regardless of whether they have offered it or not, you have the right to reject it. You are quite correct that they must put it in but even if they didn't, the right still exists.
    Starting Debt: ~£20,000 01/01/2009. DFD: 20/11/2009 :j
    Do something amazing. GIVE BLOOD.
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