Rate increase after claim - coincidence?? Is it fair?

Emma285

I've just had a letter from Halifax to say they are going to increase the rate on my card from April - yet i'm just wondering why?

I recently put in a claim for an internet purchase where the goods never turned up and despite the company agreeing they hadn't sent the goods, cancelling my order etc, never refunded my card - so i put in a claim via Halifax. Other than this - my circumstances haven't changed much, if anything they're getting slightly better. (Never miss payments and always pay more than the minimum too)

In the past i had something similar happen with egg and again it was after a fraud claim where i had a transaction i didn't recognise. The explanation at the time was they didn't know - it was just that they had reviewed my file.

Is this just coincidence - and if not are they allowed to do this under their 'treating customers fairly' bit? Neither of the claims were directly my fault, but i understand it does cost them to deal with such things. Any help / opinions appreciated.

[Deleted User]

Coincidence. You just had a routine rate increase.

And yes, they are allowed to do it.

fozmcfc

You can of course refuse the rate increase.

They will close the card and any balance you can pay off at the current rate.

Or if you have a decent credit rating try to transfer the balance elsewhere to a 0% for xx months card, which incurs a one off fee, usually around 3%.

Emma285

Thanks both - i've started to look at other cards - santander had sent me a letter offering 0% on balances for 16 months as a current acc customer. I think it also said something about guaranteed approval which i like the sound of!

I've needed to get around to sorting out this card anywas as the promotional rate ended last year - so in some ways i suppose they've done me a favour.

fozmcfc

I wish I had balance transferred my cards years before I started, I would have saved hundereds of interest charges.

Whilst normally there is a 3% fee for balance transferring, I seem to remember Santander offering the card with no fee to current account holders (although I could be wrong or it may have changed).

Even if a fee is applicable, if you have a balance or even more than one card with a balance and it/they are going to attract interest, then it's a no brainer.

The only time it isn't worth transferring is if you can pay the card/s off in such a short time that the interest on them is less than any 3% fee you may be charged for transferring.