signed credit agreements -do you need one?

atsoc15

I would recommend you right to the card supplier asking for a full explanation as to the individual reasons behind your interest rate increase. Advising that you won't accept a general explanation that has no specific references to yourself.

I will say however that unless you have always paid on time, don't max out your card every month etc then you don't have a leg to stand on.

PNPSUKNET

a company can raise a rate whenever they like, its a variable account

chattychappy

PNPSUKNET wrote: »

a company can raise a rate whenever they like, its a variable account

Yes. The lending code requires the lender to give an explanation if asked, but ultimately they are free to set whatever rate they wish whether or not the cardholder likes the explanation.

The consumer is protected to the extent they can reject the rate rise and pay off the balance over a period of time at the existing rate.

I really don't understand why people get upset about this arrangement.

fozmcfc

chattychappy wrote: »

Yes. The lending code requires the lender to give an explanation if asked, but ultimately they are free to set whatever rate they wish whether or not the cardholder likes the explanation.

The consumer is protected to the extent they can reject the rate rise and pay off the balance over a period of time at the existing rate.

I really don't understand why people get upset about this arrangement.

Quite right, if the credit card companies were forced to abide by half the rules, some of the people who post about rates being raised, they wouldn't be in business very long.

At the end of the day, it would take a really high rise such as doubling or more for most people to be affected anything but minimally. In all cases the rise can even be rejected.

And providing you manage your finances correctly, even switching to a new card shouldn't be a problem.