Rate Jacking Question

luckster28

Hi,
I did have a virgin credit card for about 8 years.
When I initially got it, the APR was around 16.9%. I got in a bit of trouble with it and fell behind.
I called them to suspend my card so that I couldn't use it and told them I just wanted to pay it off. After a few ups and downs I finally got back to not being behind on my payments.
To my surprise, a few weeks later I get a letter that said my APR was going up to 34.9%. (Basically doubling!)
I called up to complain but they said I couldn't do anything as this had been done based on my previous payment history.
I recently managed to borrow some money off a family member to pay off the last £3,000 and stop the interest payments.
Having just read Martin Lewis' rate-jacking guide - as I was no longer wanting to spend anymore on the card - I could/should have rejected the rate rise if I had known.
Do you think it would be worth retrospectively pursuing the card company for the extra interest I incurred?

Thanks very much for any advice you may be able to offer.

Chris

CannyJock

luckster28 wrote: »

Having just read Martin Lewis' rate-jacking guide - as I was no longer wanting to spend anymore on the card - I could/should have rejected the rate rise if I had known.
Do you think it would be worth retrospectively pursuing the card company for the extra interest I incurred?

In theory, according to the principles published in the article

"These will always include the option to close the account and repay the remaining balance at the existing rate of interest, within a reasonable period, having regard to the existing level of minimum payments and the customer’s financial situation. Where we offer alternative lending products, we may also provide the option to transfer the balance to such a product at the existing (or lower) interest rate."

It doesn't actually say that they need to inform you of the option to close your account and repay the balance at the existing rate, or explain what that actually mean.

I think you'd be wasting your time chasing this one IMO. Worth considering the amount you'd expect to reclaim and whether you think it's worthwhile.

EDIT: Would totally agree that they should offer you the option to close the account and stick at the old interest rate and explain what that means clearly, but can't see them doing that voluntarily.

luckster28

thank you very much for your advice CannyJock - much appreciated