can credit card companies put their rate up anytime?

bigianw

ive had a letter from c card company saying rate is been increased from 26%apr to 29% apr thats awful? do they have the right to do that?
my min payments vary between £300 £330 a month with the increase what would it be now?

[Deleted User]

Yes, they have the right. It's a variable rate and they've varied it. If you don't need to use the card you can opt out.

zppp

It will cost an extra £10ish in interest a month based on your monthly repayment.

bigianw

thanks i thought it would be like 80 quid more phew

_Andy_

why are people surprised when, having taken a variable rate credit agreement, the rate varies?

steve1980

Phone them and request them to relook at your account. 9 times out of 10 they will reduce it back down again.

izools

bigianw wrote: »

my min payments vary between £300 £330 a month

Jesus christ how much do you owe!? And have you been only paying the minimum?

If so, it's hardly suprising their putting your rate up. You're clearly over committed.

You can opt out of the increase by calling them up and asking to opt out. You won't be allowed to spend more on the account any more if you opt out.

[Deleted User]

izools wrote: »

Jesus christ how much do you owe!?
.

I think I actually heard izools' tea splatter across the screen....:)

duggie1982

Its the norm now for alot of cards!

As izools say, you can opt out and close your account.

heloid

£15k-20k I imagine...
29% interest, being charged close to £360 per month in interest alone. You may never pay it off unless you pay a lot lot more.

chattychappy

In principle they can charge what they like, and you can walk away from it. Regulation means that although the rates are variable, rather than having to pay the whole lot back to avoid a rate change, you are permitted to reject the increase and pay off the balance within a "reasonable period" at the old interest rate.

The point is, nobody is forcing you to take new credit. And if you don't, you don't have to pay any increased rate.