American Express- Changing 'Life of Balance' Transfer Rate Terms - Unfair?

Bigun28

Sometime ago I took advantage of an American Express balance transfer offer which went something like so-many % (6 something I think, but I definitely know it was a single figure), but more importantly, the offer stated that the interest rate was for the life of the balance (ie as long as the balance was outstanding, it would still stay on that rate).

That said, recently, I noticed the interest on the account started tripling because they had changed the interest rate on balance transfers to 19.9%. I phoned them and stated that the offer I had agreed to years ago was a fixed percentage for the life of the balance. Hence, they shouldn't be able to change it because some of my origional balance was still outstanding. However, they are now quoting that it said in the T&Cs that despite it stating that the rate was fixed, they could still change it whenever they wanted to.

Has anyone else been hit with this? More importantly, is this common practice across other credit cards that supposedly give you a fixed rate for the life of the balance?

M_Thomson

Randal wrote:

Sometime ago I took advantage of an American Express balance transfer offer which went something like so-many % (6 something I think, but I definitely know it was a single figure), but more importantly, the offer stated that the interest rate was for the life of the balance (ie as long as the balance was outstanding, it would still stay on that rate).

That said, recently, I noticed the interest on the account started tripling because they had changed the interest rate on balance transfers to 19.9%. I phoned them and stated that the offer I had agreed to years ago was a fixed percentage for the life of the balance. Hence, they shouldn't be able to change it because some of my origional balance was still outstanding. However, they are now quoting that it said in the T&Cs that despite it stating that the rate was fixed, they could still change it whenever they wanted to.

Has anyone else been hit with this? More importantly, is this common practice across other credit cards that supposedly give you a fixed rate for the life of the balance?

Hi,
Are you sure it was a single figure when you had the rate at first? Normally it is 4.9 or 5.9% etc for LOB. Do you use the card for purchasing stuff? If so this could be why your interest has gone up because any payments you make to the card go towards paying off the balance at the lower interest rate first leaving purchases which are at a higher rate accruing the higher purchase interest.

Bigun28

Sorry, when I said single figure I meant something like 6.something (single figure at the front eg 6.9% or something similar) and not something with a double figure in front (eg 12.9%).

I've only used the card for the balance transfer and have never purchased anything on it. Hence,my surprise when they suddenly upped the rate to 19.9%.

AMILLIONDOLLARS

How long have you held the card? and were all the transfers done within the initial promotion period?

I would have thought that they would have listed, on your statement, a breakdown of the amounts, ie those transfers done within the promotion period, and those done out side the period and with the relevant interest rates against them

So in theory you would be paying off the 4.9% or 5.9% first, whilst incurring interest on the 19.9%.

Have another look on your statement, if would be very worrying if the Credit Card companies were trying to move the goal post at this stage of the game, I'm sure there would be uproar if this was the case.

Another thought, are you sure that you have not been late in paying your invoice, just once? The CC are using this to withdraw the offer. Check your statements for ANY late payment fees.

AMD