Credit card changes in interest rate

roomtobreathe

Just started a DMP with CCCS and the Bank of Scotland card services have refused to accept the offer of payment and are continuing to charge interest. To rub things in they've also sent me advice that they are upping the interest rates by 5%.

Anything I can do about it?

Ta.

Hannah_10

Not to the best of my knowledge no, hopefully someone more experienced will be on shortly.

BigCraigJohn

They can do pretty much as they like. Personally I'd pay nothing, default the debt asap. Then just pay the dca what will then be a frozen balance. Bare in mind you will most likely default everything fairly soon anyway once on reduced payments so I don't think it's so bad.
That's just me though, see what others think.

BigCraigJohn

Oh yeah and be sure to reclaim any charges or mis sold ppi. You can also check the agreements see if legally enforceable.

barbiedoll

No, you don't have to put up with a 5% interest rate rise, especially as you are now in financial hardship. Read Martin's guide to "rate-jacking", (check out Step 3) and you can make them maintain the present level of interest by closing the account. Don't worry too much about them not accepting your CCCS monthly repayment, they won't refuse it, they certainly won't send it back and by paying a regular amount each month, they cannot say that you are not dealing with your debts in a responsible manner. They cannot have what you haven't got and they are not going to get favourable treatment over your other creditors, regardless of how much they stamp their feet in protest. As BigCraigJohn said, it may be worth looking into unenforceability but I would wait until it has been passed to a DCA, which it will sooner or later. Definitely check out any PPI or late payment charges which you may be able to claim back though.

roomtobreathe

Thanks for all the replies.

They do say on the letter that I can ring up and close my account or words to that effect. So I'll give that a go and see what they do.

No ppi on this credit card. As a general rule is it worth trying to reclaim ppi charges or charges?

barbiedoll

If you have been hit with a lot of late payment charges, especially if you have had the card for a few years, then it is worth adding them up and reclaiming them. If you had any charges that were more than £12 (the "fair" limit suggested by a judge a while back) then definitely claim back the difference. You may get lucky and get the whole lot refunded!

DarkConvict

As already mentioned, u can prevent the rate increase - http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increases

dancingfairy

Just make sure you don't have a current account related to BOS as they may dip into your bank account to take their money when you close the credit card. If necessary move your current account before you close the account (once they've taken money it can be difficult/impossible to get back).
df

DVardysShadow

dancingfairy wrote: »

Just make sure you don't have a current account related to BOS as they may dip into your bank account to take their money when you close the credit card. If necessary move your current account before you close the account (once they've taken money it can be difficult/impossible to get back).
df

And make sure that all, absolutely all of you money goes to the new account

roomtobreathe

DVardysShadow wrote: »

And make sure that all, absolutely all of you money goes to the new account

Thanks both, new account unrelated and up and running for a while now!