Barclaycard interest rate rise.

no_more_cards_for_me

ytfcmad wrote: »

Im going to take them up on there very kind offer and close my account, i have one other dormant account and fancy a Tescos card anyway, there loss.

See post 5

ytfcmad

no_more_cards_for_me wrote: »

See post 5

Fortunately i have never had a problem paying my cards and have only paid interest in the last 10 years when i have chosen to be lazy so have no need for "no more cards".:D

sswjmw

ytfcmad - I have to say that I completely agree with your sentiments. Got the same letter from Barclaycard today to find that the rate is going from 9.9% - 14.9%. After getting on the web to see if I could find out why this was, I found your post.
I have read all the replies you received about paying off in full each month and credit not being a right bla, bla, bla - the point is (and I think where you were coming from initially) is the tone of the letter.
Like you I've been a 'customer' for 25 years, spent a huge amount of money in that time, always paid off in full except for the last couple of months.
So in line with the general advise supplied - Barclaycard can stick their card where the sun doesn't shine and I'll consider it their loss.
I will not miss the garbled conversations held with the Indian call center, nor the fast that I have filled in a form about six times to have the idiots talk to my partner over the last three years and they still refuse to do so.

Eyesparky

I have just had the same thing happen with LTSB only they are hiking it by more than 5%. All the banks are at it and they are being really short term in their thinking and helping to multiply the effect of the recession. I am in the fortunate position of being able to call down funds and clear the balance in full but will have to adjust plans that I had to accommodate this in the short term. Many are trapped by this kind of usury action. My personal circumstances , whilst not brilliant, have not changed at all, yet they have hiked the interest rate (interestingly enough they wrote to me concerning cash withdrawal interest increase and on calling them to verify that I had no cash advances on my balance, I was informed that the purchase rate was also being hiked. No letter sent about that, so glad I called).

Although it will take a few months to organise and will lead to a fair amount of hassle, LTSB Group will be losing all of my business. Ultimately it is a drop in the Ocean to lose circa £80-90K from me over the term of my mortgage but I am all for voting with my wallet. The problem is finding any financial institution in this country capable of delivering balanced, fair and honourable business practices.

chattychappy

Reality is, whether you've been with a bank for 23 years or 23 days, this isn't how they price credit. You'd think it counts for something - but I suspect that amongst their customers in trouble a fair few are those who have run accounts for years. If they perceive an across the board increase in bad debt, cost of finance or other operating costs then they'll impose an across the board interest rise.

Perhaps they know from experience that if you've been with them for 23 years then you're a soft target. They can up the rate and chances are you'll stick with them for another 23 years. People who only opened the account 6 months ago are more likely to move elsewhere - so their rates must be kept competitive. Ie no reward for loyalty - loyalty = you're probably lazy to move = they can charge you more.

As for the tone of letters - a monumental mystery to me. Banks seem to spend alot and advertising/PR but don't let their marketing people near these letters. All that marketing spend undone by a style than narks people off. They're quick enough to get branch staff to cross-sell products. Don't they realise that by annoying a credit card customer they might also be putting that customer off other products?

I've always found Barclaycard the worst to deal with (and I have a Zero card). Got my first one 25 years ago. Put alot of spend through - then they introduced a £12 annual fee and messed around with the "profile points" loyalty scheme or whatever it was called. Wouldn't compromise on the fee so went elsewhere. Later they u-turned on that. Won't cut my nose off to spite my face - now got a good deal on BC platinum.

I'm not loyal to any financial institution. The feeling's mutual.