MorganStanley to Barclay - Life of Balance offer has been changed - Pls Help

jeevan1000

Dear MoneySavingExperts,

I had transfered balance to MorganStanley card with balance transfer for life offer at 5.9%. Barclaycard has taken over Morganstanley in Nov 2008. Until Sep 2010 balance has been charged at 5.9% , from where the interest rate has been changed to 16.9% APR.

When I called Baclays, they are saying that they have given notice long time ago that this offer will end by Aug 2010, which I cannot remember receiving. Can this be legal to change the Balance transfer rate for life, to what ever the rate, by giving notice.

Will I stand a chance if I complain this to FSA/Ombudsman,

Thanks,
Jeevan

stephane_2

You need to follow first Barclaycard complaint procedure before going any further

stephane_2

Have you ever been late for a payment? Have you been over your limit? Have you paid less than the minimum payment? If yes to any of those, then Barclaycard can decide to withdraw the offer at any time....
Are you certain that the rate offer was for a LOB and not a fixed period

BugsyBrowne

stephane wrote: »

Have you ever been late for a payment? Have you been over your limit? Have you paid less than the minimum payment? If yes to any of those, then Barclaycard can decide to withdraw the offer at any time....
Are you certain that the rate offer was for a LOB and not a fixed period

As stephane says have you any late payments and that.

Was reading a website the other day that was saying that credit card companies are checking their customers credit reports on a regular basis to check things like late payments or missed payments on your other accounts,does not matter if you have flawless history with your own company,if they see any thing on your other accounts then there is their reason to hike up your interest.

stephane_2

star-fire wrote: »

As stephane says have you any late payments and that.

Was reading a website the other day that was saying that credit card companies are checking their customers credit reports on a regular basis to check things like late payments or missed payments on your other accounts,does not matter if you have flawless history with your own company,if they see any thing on your other accounts then there is their reason to hike up your interest.

Maybe they do what you are suggesting...but the point is that if you are on a LOB and have not broken their T&C...are they allowed suddenly to end the offer and hike up the rate

BugsyBrowne

stephane wrote: »

Maybe they do what you are suggesting...but the point is that if you are on a LOB and have not broken their T&C...are they allowed suddenly to end the offer and hike up the rate

No defiantly is wrong like you say in the T&C's he has not broken them,as you say he needs to follow make a complaint straight away and find out for this reason.

jeevan1000

stephane wrote: »

Maybe they do what you are suggesting...but the point is that if you are on a LOB and have not broken their T&C...are they allowed suddenly to end the offer and hike up the rate

No, I've never missed a payment or ever been late. Transfered 5.9% balance for life to Morgan Stanley and set up minimum payment direct debit and put the card away. Now barclaycard say that they have sent out letters saying that they will be ending morgan stanleys life of balance offer in 18 months time, and the rate would be as normal after that, this I cannot remember receiving.

My question can Barclaycard end the offer which was initially "balance for life" from Morgan stanley, just because they've taken over and given notice that they will end the offer by certain time??

Thanks guys for the replies :T,

scott_lithgows

Citi bank did this,however it stated that lob deal would finish in 2049! however it was on a line at the bottom of the statement.

I would try and shift it to another lob deal and tell them to close the card.

izools

Or is this another simple opt out of the change by closing the account?

I think you'll find though that most LOB offers are considered "promotional" and are not actually part of the credit agreement -

MBNA for example

https://wwwa.mbna.co.uk/apply/UKCCapp/Ctl/link?eid=48575E07

Show their Life of Balance card as having a 18.9% - 26.9% APR for balance transfer - and the 5.9% LOB rate is considered a "promotion" which they are within their rights to withdraw at any time.

Looking at it it doesn't appear they have a legal obligation to honour the LOB deal for ever.

chattychappy

star-fire wrote: »

Was reading a website the other day that was saying that credit card companies are checking their customers credit reports on a regular basis to check things like late payments or missed payments on your other accounts,does not matter if you have flawless history with your own company,if they see any thing on your other accounts then there is their reason to hike up your interest.

Nah they couldn't do that unless that was part of the LOB deal. The only BT deals I've seen only provide for the deal ending when you miss a payment on the account concerned.

Can you provide a link to the website?

Different matter if you've entered into an arrangement with your creditors or something. Typically CC T+Cs have a clause to deal with situations such as this and they might pick this up from a credit check.

chattychappy

izools wrote: »

... and the 5.9% LOB rate is considered a "promotion" which they are within their rights to withdraw at any time.

Looking at it it doesn't appear they have a legal obligation to honour the LOB deal for ever.

The FSA don't like terms with sweeping powers such as this. This interpretation sounds "unfair" and unsustainable to me. Different if you've defaulted of course.

But I think this is a misinterpretation anyway. I've done MBNA BTs and have seen the same reference to the promotion being withdrawn at any time. I've read it as meaning that the offer can be removed. Eg "6.9% on BTs done before 31st December, 2010. 3% fee applies." This means that you have until the end of this year to take up the offer. But they could withdraw the offer earlier than that (perhaps because their cost of credit changes, they take a different view of you etc). However this wouldn't affect any BTs you've done.