Halifax rate increase

[Deleted User]

Howdy, folks.

Just got home to a rather nasty tasting letter from Halifax, it seems they don't really want me as a customer. Following on from the recent change in their overdraft rates from a percentage to a flat fee, effectively doubling my overdraft interest from appx £14 per month to £1/day no matter how much I'm into my overdraft (yes, if you're £1 into your overdraft for 30 days they'll charge you 30 quid!!!), they've now sent me a notice of credit card rate increase with flimsy excuse attached.

Purchase rate up from 24.93%pa to 29.95%pa
Balance transfer rate up from 24.93%pa to 29.95%pa
Cash rate up from 28.95%pa to 29.95%pa

The excuse given is as a result of the current economic situation (do they mean the one that's been going on for 2 years?) had to increate interest rates to reflect the level of risk. Continually review to apply the most appropriate interest rates (which is a lie as this is inappropriate).

So, I thought we were having a govt investigation into filthy practices, hiking up an extra 5%pa on interest rates to me seems like they're trying to get rid of existing customers who've conducted their accounts perfectly fine.

I'm sure it's definitely allowed, but isn't an extra 5% wholly inappropriate and over the top?

molley

Deleted_User wrote: »

Howdy, folks.

Just got home to a rather nasty tasting letter from Halifax, it seems they don't really want me as a customer. Following on from the recent change in their overdraft rates from a percentage to a flat fee, effectively doubling my overdraft interest from appx £14 per month to £1/day no matter how much I'm into my overdraft (yes, if you're £1 into your overdraft for 30 days they'll charge you 30 quid!!!), they've now sent me a notice of credit card rate increase with flimsy excuse attached.

Purchase rate up from 24.93%pa to 29.95%pa
Balance transfer rate up from 24.93%pa to 29.95%pa
Cash rate up from 28.95%pa to 29.95%pa

The excuse given is as a result of the current economic situation (do they mean the one that's been going on for 2 years?) had to increate interest rates to reflect the level of risk. Continually review to apply the most appropriate interest rates (which is a lie as this is inappropriate).

So, I thought we were having a govt investigation into filthy practices, hiking up an extra 5%pa on interest rates to me seems like they're trying to get rid of existing customers who've conducted their accounts perfectly fine.

I'm sure it's definitely allowed, but isn't an extra 5% wholly inappropriate and over the top?

You are not alone in getting that letter .It's absolutely ridiculous ...

no_more_cards_for_me

A credit card is a variable rate - they varied the rate.

Simple solution - don't borrow long term on a credit card !

See the other Halifax thread for other answers to this - raised last week.

[Deleted User]

no_more_cards_for_me wrote: »

A credit card is a variable rate - they varied the rate.

Simple solution - don't borrow long term on a credit card !

See the other Halifax thread for other answers to this - raised last week.

Of course, that's the whole point, but 5%! And the BoE hasn't increased interest rates or any of that sort of thing as far as I can find on their website.

draconian_2

The best thing to do is follow the simple debt advice which is cut it up send it back and they will hold the current interest rate - then when your in the market for further borrowing never use HBOS.
Simples...vote with your feet - its what I have just done. Screw them!

They like Amex and Egg are looking to clear their "dead wood" out!

Good luck

D

no_more_cards_for_me

Why would it matter what the BOE rate was - the two are not connected. The credit card companies need to increase profits hence rates rise - supply and demand - if you don't like it vote with your feet or don't borrow long term on short term facilities.

miss_missy

Deleted_User wrote: »

Of course, that's the whole point, but 5%! And the BoE hasn't increased interest rates or any of that sort of thing as far as I can find on their website.

as already stated BoE rates has nothing to do with cc rates they are not linked in anyway
why is it when cc rates rise lots of people start going on about the BoE interest rates? do people really think cc rates track BoE rate?

banks at the minute are trying to claw back what theyve lost and an easy target is cc customers if unhappy you can reject the rate rise

YorkshireBoy

Deleted_User wrote: »

I'm sure it's definitely allowed, but isn't an extra 5% wholly inappropriate and over the top?

Does it matter? What's more "appropriate" is what you're going to do about it. Do you know yet?

And if you can't vote with your feet then they got it right, in terms of risk, didn't they?

[Deleted User]

YorkshireBoy wrote: »

Does it matter? What's more "appropriate" is what you're going to do about it. Do you know yet?

And if you can't vote with your feet then they got it right, in terms of risk, didn't they?

I do have enough credit available elsewhere to cover it, but total outlay monthly would be higher. What I'm going to do about it is clear it in 10 months.

izools

you don't need to pay it off

Simply call them, tell them you are opting out and to close the account, and you can continue to repay your debt at the same pace and APR, but won't be allowed to use the card again.

Simples

DGJsaver

Deleted_User wrote: »

Just got home to a rather nasty tasting letter from Halifax, it seems they don't really want me as a customer. Following on from the recent change in their overdraft rates from a percentage to a flat fee, effectively doubling my overdraft interest from appx £14 per month to £1/day no matter how much I'm into my overdraft (yes, if you're £1 into your overdraft for 30 days they'll charge you 30 quid!!!),

On an authrosied overdraft :eek: :eek: