Challenge credit card interest rate hikes?

Afoolandhismoney

Hi all

I've already posted on the DFW forum having accepted that I've been overspending for way too long and have had some great support and advice on how to turn this around.

My question is this:

Is it possible to challenge rate hikes and roll back to an earlier more reasonable percentage rate? I don't recall receiving notification of the changes from 16% to 21% and now nearly 27%:eek:

Would sending a SAR to the cc provider in question give me any opportunity to challenge this? I don't dispute what I've spent and that I need to pay it back, but I don't know if there is any scope to go back and recalculate the interest under the old rate. Does the provider have any burden of proof that they advised me of these increases?

I'm not in a position to BT this amount (£8K) but want to pay off as quickly as possible rather than consolidating and tempting fate with more needless debt. Any decrease in interest would of course make my planned increase in repayment amounts far more effective and get me out of their evil clutches even quicker :wall:

Thanks guys

[Deleted User]

You can try but it's very unlikely. They'll have priced you according to risk and advised accordingly. Either through statements or separate mailing.

If they did agree to something, you would want to be careful of it being marked as an arrangement on your history, as that won't do your rating any good.

Hax

Notification of rate changes may have been included on your monthly statements - do you always read them carefully?

Credit card companies now have to give you 30 days notice of any rate change and you then have another 30 to reject the change. If you don't reject the change then you are deemed to have accepted the variation.

If the rate changes were recent, then I would think it unlikely that you would have NOT been notified as changes were made in 2008 and I doubt any lender would now not be abiding by the changes otherwise they risk exposing themselves to people trying to recover "their" losses.

Also, wise words from zx81 regarding your credit reports.

Anyway - there's more information here: MSE article about rate jacking