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Rate Jacking - Lloyds TSB Credit Card
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Chemical_Grrl
Posts: 62 Forumite


in Credit cards
Hi All
I have a question in relation to Rate Jacking. I have a credit card with Lloyds TSB and have recently discovered that they have increased my rate consistently in the last year and half (every six months).
I rarely use the credit card, have never missed a payment but only manage the minimum payment each month.
My rate has increased from 11 odd percent when I took out the card in 2006 to 26 odd percent now. Having read up about rate jacking I understand that the bank are required to notify you of an increase in your rate. I have never been specifically written to regarding rate increases but having checked my statements I have noticed in “account news” section of my statement they have advised me of the increases.
Is there any law that says they have to write to you separately to notify you of an increase, I feel it’s quite a sneaky way of doing it because I didn’t notice.
Also I phoned Lloyds and asked them why my rate had increased and they couldn’t answer my question, any thoughts on how to tackle them?
Thanks
I have a question in relation to Rate Jacking. I have a credit card with Lloyds TSB and have recently discovered that they have increased my rate consistently in the last year and half (every six months).
I rarely use the credit card, have never missed a payment but only manage the minimum payment each month.
My rate has increased from 11 odd percent when I took out the card in 2006 to 26 odd percent now. Having read up about rate jacking I understand that the bank are required to notify you of an increase in your rate. I have never been specifically written to regarding rate increases but having checked my statements I have noticed in “account news” section of my statement they have advised me of the increases.
Is there any law that says they have to write to you separately to notify you of an increase, I feel it’s quite a sneaky way of doing it because I didn’t notice.
Also I phoned Lloyds and asked them why my rate had increased and they couldn’t answer my question, any thoughts on how to tackle them?
Thanks
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Comments
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I would just cancel it and get another card, if you have good history you could get a much better rate.
I don't get the sentence in which you say you rarely use it but only ever pay the minimum? surely if you don't use it that often the min payment is not huge so you could pay it all at once?
What's the limit and balance on the card?"We want the finest wines available to humanity, we want them here, and we want them now!"0 -
Chemical_Grrl wrote: »I rarely use the credit card, have never missed a payment but only manage the minimum payment each month.
I have never been specifically written to regarding rate increases but having checked my statements I have noticed in “account news” section of my statement they have advised me of the increases.
Is there any law that says they have to write to you separately to notify you of an increase
I feel it’s quite a sneaky way of doing it because I didn’t notice.
Other than sending round a stripogram to sing the message to you in the buff, I really don't think they should be obliged to do any more.0 -
Chemical_Grrl wrote: »Is there any law that says they have to write to you separately to notify you of an increase, I feel it’s quite a sneaky way of doing it because I didn’t notice.
Neither is there any law that you have to check your statements, or, if the bank advises you of changes in a separate letter, that you have to open the envelope and not shove the correspondence unopened into a drawer.
The bank did advise you of changes to your account, that you failed to take-in the information, is not the bank’s fault.0 -
opinions4u wrote: »Other than sending round a stripogram to sing the message to you in the buff, I really don't think they should be obliged to do any more.
Love the idea!!!0 -
Agree with opinions4u except that I think they should be obliged to send the stripogram!
To the OP: I think you got the message. You MUST read statements. Are you signed up to DD by chance? I feel that these are the instrument of the devil - because they encourage not checking statements. Actually I wonder if banks deliberately target DD payers for rate jacking because they are less likely to be reading statements. (That's what I'd do if I worked for them!)
Unless the last change was within the last 30 days (?), you have no right to demand anything of them, but you could phone and ASK them to reduce saying if not you'll BT elsewhere. But don't push it anymore than that - put your energies into getting a new card. Plenty of 0% BT deals around. If you're struggling to meet current minimums, then don't go wild with the extra credit. Try and knock the debt back a bit.0 -
chattychappy wrote: »To the OP: I think you got the message. You MUST read statements. Are you signed up to DD by chance? I feel that these are the instrument of the devil - because they encourage not checking statements. Actually I wonder if banks deliberately target DD payers for rate jacking because they are less likely to be reading statements. (That's what I'd do if I worked for them!)
More fool those that don't read the statements then.
How else are you supposed to spot fraudulent or mistaken transactions unless you check your statement carefully?0 -
Has OP completely cleared his balance at all during the last 12 months?
If not that is one reason they will see him as a higher risk of defaulting and charge accordingly.
What happened in 2006 is not relevant now - try to get a cheaper card.0
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