why do they change the aprs?

CosmoCat

Why do credit card companies let you apply and accept you for a card at a particular apr and then send you a letter saying that they can only give you a card for a higher apr than the one you applied for?

i've had this happend recently with a marbles card application. I applied online and got accepted for a card at 14.9% apr (0% bt for 9 months), then when the agreement came to be signed, the cover letter said that they could only give me a card with 19.9% apr.

I'm sat here with the letter, i don't know if i want to tell them to stuff it for not giving me what they originally said they would. or should i just send it back and use the 0% bt (which is what i originally wanted in the first place.) i know come hell or high water i would be shifting the balance on this card before i have to pay 19.9% apr on it!!!

thanks for letting me ramble.

Joe_Bloggs

@melabarrie
This is very common. Often a rate they quote will be a typical APR to a certain proportion of customers. I got an egg money 15.9% card when I could have got close to 7% typical. My credit limit was also poor but as I pay it off every month the rate and limit does not matter and the purchase rebate is a bonus.

Check if there are balance transfer fees. Is there a cap (higher limit) on these fees. Was the credit limit they gave you what you wanted ? Martin has an article on how to view a less than perfect deal.
J_B.

Rafter

By law they have to offer 67% of customers the advertised rate.

Although this is a bit academic because some of the sharper operators have then simply increased the APR a few months after you get the card.

The reasons for the increase are that about £300million of income has just been wiped out by the reduction in penalty fees, more and more people are gaming the introductory offers and bankruptcies are running at record levels.

Charging people unlucky enough to pay 20% APR is the only way that the banks can make any money at the moment.

R

jonnyb

The same thing just happened to me; I'm not bothered that they changed the APR as I'm only after the 0%, but they changed the 0% period as well !!
The website (marbles.com) offers 9 months; their letter offers 6 months.

I've just rung them - not very helpful - said to re-apply.

Can I make them honour the 9 months offered on the website ?

---lee---

Rafter wrote:

Charging people unlucky enough to pay 20% APR is the only way that the banks can make any money at the moment.
R

Bear in mind that they also charge all merchants whopping fees for authorisation systems and per transaction fees!

kragen_ironfist

jonnyb - I would check very carefully the T & C's and small print to see if it says anywhere in there that they may change the offer between the online and paper agreements. If they do not, or do not make it clear, then have a word with trading standards just in case they are breakin the rules.

I have seen small print saying that APR's may vary, but I don't think I've ever seen any smallprint saying that they may not give you the intorductory offer for the whole of the advertised period. If they are not, then they ought to tell you when the website says you're accepted.

In my book thats tantamount to false advertising - but you would have to double check the small print

jonnyb

thought I would post an update.
they called me this morning, just as I was wondering what had happened to my complaint letter.
they cannot explain why I was only offered 6 months at 0% and cannot officially change it to 9 months.
however they are going to credit back the interest charges in months 7,8, 9 to effectively make it 9 months 0%

so, good on marbles customer service !:T

kenshaz

Use them ,do not cancel,they have done a credit search,so take the 0%,gain from them sucking you in with low rate head line,by useing them,then you have won ,REVENGE