Barclaycard Interest Increase

fozmcfc

I do agree, some people on this thread, seem to have posted just to be nasty.

Basically all that's needed to be said to the OP, was you can't complain to the ombusman, Barclaycard can increase if they like and the OP has to live with the increase or stay with the 14.9% by closing the card, paying off the balance and going elsewhere.

At least Yorkshireboy gave a decent helpful reply.

chattychappy

I think what's annoying about all this is the claimed pretext when these things happen.

You motor along with little change in circumstances but get unexpected increases in limits, unexpected decreases, increases in interest rates (as here), and even decreases. I've had all 4 in past months on different cards.

Often detrimental stuff is couched in "responsible lending policies" ... when half the time it's some dodgy IT algorithm combined with a picture from experian that only tells half the story.

In the OP's case, I'm sure the bank is simply reassessing risks (probably not very well) and market opportunities. But unlike many other private businesses which have an eye to goodwill, banks seem incapable of implementing any policy without needlessly antagonising customers.

CannyJock

Jill_ wrote: »

They have done it to people I know with a Barclaycard so Im guessing a random selection of customers just got picked

It won't be random

Agree with chatty that the terminology they've all adopted seems designed to rub people the wrong way.

If they were at least honest about it and said

"Dear Mr. CannyJock,

We notice that you haven't used your credit card for a while and when you have used it, your maximum balance over the last 12 months has been £500. As a responsible lender we'd like to reduce the risk of fraud for both of us, and as the financial sector is in difficult times, we'd like to reduce our exposure where possible. We've decided to reduce your limit to £1,000 which we hope meets with your approval.

If you think that you will need your higher limit of £10,000, please contact us and we can discuss a suitable limit. If you're happy with the reduced limit, we'll send you a £5 M&S voucher to say thanks for working with us!

Love and kisses

Head of Credit Cards
A credit card company"

Well, it is a Friday

_Andy_

timetothink wrote: »

You'll be wasting your (and the Ombudsman's) time.

Ok, but am i right in thinking that each time a complaint is made to the ombudsman the company involved has to pay a certain amount for the costs involved. If they are going to rob me for no apparant reason why should i not (at the expense of the ombudsman granted) hit them where it hurts too?

They're not 'robbing' you at all. It's a variable rate, they've varied it.

happyandy63

They are all at it. MBNA hiked my interest from about 14 to just under 25%. They said it was because my circumstances had changed. I bought a house with 70% deposit. I am hardly a high risk of defaulting. I think 25% is taking the !!!! so I just closed. I pay it off every month. No wonder the banks are in trouble. The lend hundreds of thousands to people with no job and a history of not paying then expect the reliable customers to pay for there greed and stupidity.

Of interest has anyone seen the ads on TV for cash advances. I saw one company that has interest rated of over 2500% apr

Kavajo

The same thing has happened to me. I am moving house and taking on a bigger mortgage, though putting down decent 25% deposit, and coincidentally Barclaycard have informed me (in small print on statement) that they are hiking my rate from 14.something% to 19.something%. I've always been on time with payments and have a low balance (actually just the mortgage valuation fee which is due to be refunded on completion). I was planning to use the card to buy carpet and one or two items of furniture for the new house, and repay when I get my annual bonus in December.

You would think that card providers would be looking out for reliable, cautious customers in these uncertain times to improve the quality of their loan-book. You might also expect that customers who pay on time and keep to the terms and conditions would be valued and rewared for loyalty, and perhaps even offered lower rates to retain them as customers. It seems with Barclaycard the opposite is true.

I shall be shopping around for a new card as soon as we exchange contracts on the house. Banks call people who do this rate tarts - but what do they expect me to do? Seriously muddled thinking on their part...