signed credit agreements -do you need one?

feebee7

hi i do not have a signed credit agreement for one of my credit cards. this has not been an issue up til now, my payments are up to date, but the lender has raised my interest rate substantially for no reason other than they can. they have told me they do not have to provide a copy of my signed credit agreement under reg 3 (2)(b)(ii) of consumer credit (cancellation notices and copies of documents) regs 1983. where does this leave me? all i have requested is a return to the original interest rate, which has been rejected, strangely enough!

fozmcfc

Well you can refuse the interest increase, but then the card is closed and you have to pay off the remaining balance at the old interest rate.

Credit agreement or not, if you don't like the increase do the above and go elsewhere.

Basically they can up their rate whenever and by how much they want (within reason i.e. not upto 80% from say 17%) and all you can do is accept it or do the above.

chattychappy

If the T+Cs allow them to put up the interest rate (bet they do!), then they can do that. Almost certainly the T+Cs will reflect the LSB's regs and permit you to reject the increase. You must exercise this right swiftly (can't remember how long you get, probably 28 days or some such). If you do reject it then you can't put new spending through. You will have to pay down the card in the usual way (regs say they can insist you pay it off "within a reasonable period").

They never have to provide an actual copy of the signed agreement. What they have to do depends on when the agreement was entered into - but generally a reconstituted agreement is enough.

feebee7

I am going to try to get them to either zero the interest rate or drop it right down!! my arguement being if i didnt sign for it, they should be more prepared to bargain....i know its practically impossible but i havent had a good fight for a while!

chattychappy

Well... be very careful you don't end up making an arrangement to pay - which they'll eagerly report to a CRA.

Suggest you try to get a BT deal elsewhere if possible.

You might get a deal with the existing CC - but I'll doubt whether it will be on the strength of disputing you have an agreement with them - and if you do have an agreement with them then they don't need you to sign for rate changes. They've heard it all before and following the Carey v HSBC judgment they don't feel the need to engage.

_Andy_

feebee7 wrote: »

hi i do not have a signed credit agreement for one of my credit cards. this has not been an issue up til now, my payments are up to date, but the lender has raised my interest rate substantially for no reason other than they can. they have told me they do not have to provide a copy of my signed credit agreement under reg 3 (2)(b)(ii) of consumer credit (cancellation notices and copies of documents) regs 1983. where does this leave me? all i have requested is a return to the original interest rate, which has been rejected, strangely enough!

Why should they return it though? You accepted a variable rate credit agreement, why are you shocked/outraged that it's varied?

feebee7

i never said i was outraged with the variation but i do think the credit card companies take the p*ss in the way they implement excessive rate rises for no reason. i run my own business, but i dont inflict excessive price rises on my customers unless there is a good reason. its about time we stood up to these legalised sharks and made them stand up to be counted. i dont mind price rises, i understand the way the economy works, but i dont appreciate being taken for a fool by some overpaid idiot who hasnt made enough money for his bonus this year. easy money if you havent got a soul.

stephane_2

feebee7 wrote: »

I am going to try to get them to either zero the interest rate or drop it right down!! my arguement being if i didnt sign for it, they should be more prepared to bargain....i know its practically impossible but i havent had a good fight for a while!

You haven't got a chance in the world.....

feebee7

i took on the csa, so i am more than prepared for a mere credit card company!!!

PNPSUKNET

more chance of getting a free car from never-in-doubt lol

hullight

feebee7 wrote: »

for no reason other than they can

You agreed to a variable interest rate. Best bet is going to be a balance transfer as has been suggested.

You need to maintain a good credit file for a good balance transfer offer. If you stop paying because you don't like the interest rate they will wreck your file, putting you in a worse position than you were before.