IKEA store card

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Surely you are entitled to adequate notice to settle the balance before the rates increase?

Degenerate

noah271007 wrote: »

Update:

Just spoke to the customer services today protesting at 8% increase APR to 27.5%. I have decent credit history. They have confirmed that i cannot make a request to freeze the APR and close account once balance is paid in full. Apparently this does not apply to store cards unlike credit cards.

A store card of the sort you describe is a credit card, there is no difference in law. It may not function through the Visa/MC/etc networks, and may only be usable for spending in that one store, but it is still a rolling credit product regulated in the same way. I'd ring them back and point this out, and next stop is the Financial Ombudsman Service.

noah271007

Degenerate wrote: »

A store card of the sort you describe is a credit card, there is no difference in law. It may not function through the Visa/MC/etc networks, and may only be usable for spending in that one store, but it is still a rolling credit product regulated in the same way. I'd ring them back and point this out, and next stop is the Financial Ombudsman Service.

Update:

I have spoken to CS today and they have said that APR of 27.5% will apply on 1st August irrespective of whether account is closed or not. I did explain the points you mentioned above, but no avail, they just said it is standard with their terms and conditions.

Are IKEA breaking the law not allowing customers to make a request within 30 days after been notified of their APR increase to hold the current APR on current balance but forgo the ability to use the card (i.e account closed)?

I want some answers before i take it further by writing to FOS.

Lilith

CannyJock wrote: »

They can't. They revise the APR going forward on existing balances. You have the option to clear the balance in full before the rate increase if you want to avoid any penalty as a result of the increase in interest, or to close the card, freeze the interest rate and forego the option to use the card in the future. Or why not look at transferring any existing balance onto a 0% balance transfer card and then clear the balance in full each month going forward while repaying the 0% balance card as quickly as possible?

Thanks for the suggestion. I've recieved the same letter and am more than a little peeved with Ikano Card Services. I'm planning on doing a balance transfer and had considered VirginMoney, however they don't appear to take store cards. Can anyone suggest a card with 0% on balance transfers which will accept the balance of this card?