Rate Jacking - Lloyds TSB Credit Card

Chemical_Grrl

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

KingElvis

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?

opinions4u

Chemical_Grrl wrote: »

I rarely use the credit card, have never missed a payment but only manage the minimum payment each month.

Perhaps try sending them an extra amount each month, even if this is only a fiver or so. This may reduce your risk profile in their eyes. Minimum payers are high risk and their rate charging is reflecting this.

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.

I would say that it was in writing, so I'm not sure what your problem is.

Is there any law that says they have to write to you separately to notify you of an increase

No.

I feel it’s quite a sneaky way of doing it because I didn’t notice.

They put it in writing on a statement that is sent because they expect you to check what's on it. Did you not check the balance and interest charged on the statement either? Does the statement not tell you the rate charged every month? If it had been in a separate letter, a complaint could be "they never told me on my statement and I thought their letter advising me was junk mail so I shredded it".

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.

bengal-stripe

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.

bengal-stripe

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!!!

chattychappy

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.

Fiddlestick

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?

jonesMUFCforever

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.