bank no willing to play ball. hike credit card

bobsky_2

Just been onto my bank again, WHY do they insist on screwing us for more cash?

the advisor says that FSA "suggested" that banks sould increase the APR in order to encourage us to pay off our debt a lot quicker.

from my previous posts I am in serious debt etc and am struggling big time. disp icome is minus and I have posted my SOA etc.

anyway- doesanybody know about the FSA's suggestion?

last month I told my bank that I am struggling so they closed it....yet my min payment went up by £13.00 this month and my :eek:sice May
what can I do, thanks

Hax

From reading other threads on here, you can apparently reject an APR increase on the condition that you no longer use the card. The debt still remains with the same T's&C's from before the hike - i.e. you still have to make at least the minimum payments and interest is still accrued until the debt is cleared - but at least the APR remains the same as it was.

DarkConvict

Yes you can reject it, and it will say so on the letter - MSE Guide - http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increases

NorthernLas

If you have not spent on your card and the bank has closed the account, then I would expect that your APR is fixed at account closure. Ask the bank why the minimum payment has gone up.

The SOA you posted showed that you cannot pay all of your debts, but you can pay most, yet you have said that CCCS suggest only token payments (which suggests that you have less than £100 after paying for essentials). So the SOA posted must be very different to your actual situation. If you are overcommitted, you must reserve your funds for priority debts and pay token to your unsecured creditors.

davidjwest

I work for a bank and doubt the FSA would say such a thing, they are there to make sure the banks stick to the banking law and not to offer business advice. I can't be certain of course as I work in IT however so I don't have direct dealings with the FSA.

I had a similar issue last year, the credit card I was on was 0% and then when that finished they hiked the rate to 33.9% - I had to go on a DMP as I couldn't afford the repayments (just separated from my wife) and so ironically now I'm on 0% again.

Bit of a radical move to go onto a DMP to get 0% though!

bobsky_2

I spoke to bank and as follows:

last used may 2010.
£101.00
rate was 20.9%
paying £76. per month as min paymt
june rate increase to 23.4% min paymt £174
july rate same as 23.4 min paymt £176 ish
aug rate same as 23.4% min paymt £188.76.

what i cant understand is my balance is coming down, my card has been stopped by cust serv team as I have gone thru my SOA, and I have not used the card since may 2010.

also my rate when I started was 15.9%

now its 23.4% and I have never missed a payment....heck that cheeky.

thanks for your help

bobsky_2

Hiya, I have spoken to LLoyds again...they seem to be clutching at straws again with the reasons why they have Hiked the apr. Here is a new one "sometimes the bank may increase your rate beacause you have not spent on it for a while" agent....also due to the ecconomic situation. I said so if I was Mervin King with a credit card you still would increase my rate....silence...! this is a joke. anyway Fin Obudsman are now getting involved as I am not happy with their lies etc.