Co-Op Bank introduces monthly fee on some credit card

CopperPlate_2

Just saw that Co-Op have updated one of their card offerings with details of the fee. It relates to the Base Rate For Life card:

http://www.cooperativebank.co.uk/servlet/Satellite?cid=1078141742740&pagename=CoopBank%2FPage%2FtplPageStandard&c=Page

edited: interest rate quoted here was taking into account the monthly fee so wasn't truly horrific as I first thought! Removed to avoid confusion.

[Deleted User]

The balance transfer interest rate is around the Bank of England rate. The APR is 21.5% because of the £10 per month fee.

I guess if you could decrease your interest payments by more than £10 per month by switching to this card, it could save you money. Although that depends on whether you could get a better deal elsewhere.

CopperPlate_2

That's Lloyds TSB doing the same now with one of their "premier" type credit cards too.

Stuart_W

Just for the record -
The £10 per month base rate credit card is nothing new, the Co-Op have offered it for years. I've also had a fee-free card from the Co-Op for years. Co-Op bank credit cards were fee free when all the major high street banks charged a fee.

You also need to understand that the "21.5% APR" the the Co-Op are forced to quote under the strict regulations takes in to account the monthly fee on a typical balance of a certain amount (I'm not sure but I think it is around £1500 or so). You're really paying 4.75% APR plus an admin fee of £10 per month.

I actually recommended this card to a friend in debt with a large number of cards and loans that was not being accepted elsewhere, and it was an overall better deal than other consolidation loan offers available on their particular credit rating.

GunJack

I think people are beginning to confuse two similar Co-Op card products, which could be quite easy to do if you don't read the terms carefully.

When I was looking for best-buys earlier in the year, I looked at both the Base Rate For Life (with fee) card and the Base Rate Tracker (fee-free).

The BRFL card may be better value if you have a lot outstanding on it, when the £10 is cheaper than the interest on a 'standard' card, but the BRT was better for me (purchases & cash advances at same low rate, ideal for work travel, especially if you need emergency cash). I have still NOT been advised of a monthly fee payable on my BRT card.

GunJack

p.s. just checked the Co-Op site again, no mention of a fee on there...........

Stuart_W

Thank you for the clarification, GunJack

CopperPlate_2

GunJack wrote:

I think people are beginning to confuse two similar Co-Op card products, which could be quite easy to do if you don't read the terms carefully.

I have still NOT been advised of a monthly fee payable on my BRT card.

No, not any confusion here. Just quoting the reports detailed in the press which claimed that the Platinum Base Rate Tracker card was to start charging a fee from 1 November this year. Whether the BRFL card has always had a fee is neither here nor there, unless the press have mixed the two up but it does seem clear in the report that it is the Platinum card which is to start charging.

I'm assuming that the relevant terms and conditions will stipulate a required period of notice to give current customers of any changes. Possibly 30 days which would be the end of this month or so.

intreast

kenshaz wrote:

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

u see i am french live in dijon i had 11 c cards in the uk 4 years ago i took 95000 pounds to dijon and brought a house with the money the banks are silly there is a lot of dirty debt in the uk people have not paided there debts like me the thing i had the last laugh up to the banks

intreast

the funny thing i wentback to brighton there last yr and there was a letter from a debt collection a gency i o halifax 11000 pounds i rang intrim debt collectos for a laugh they said all intreast is stopped mr joe has been stopped for 3 yr and 6 months and if i can come up now with 3000 pounds thay would write of under 8000 pounds as a full and final sett u see there are mad to get somrthing back isaid no put the letter in the bin and went back to france and laughed thats why apr gos uo