Airmiles Duo, anyone else due for a hike in repayments?

Elisew

I received a letter from LloydsTSB this morning informing me that the interest on the Airmiles Duo card I have will rise from 16.95% p.a (variable) up to 21.94% in June.

I guess it`s no good moaning that the 5% rise is a ridiculous amount to hike it up by because these companies are a law unto themselves, but I wondered if anyone else has had a similar letter from Lloyds recently?
I guess it would just be easier AND a cheaper option to close the account and repay at the current 16.95% rate?

Thoughts and opinions welcomed

izools

This isn't an increase in payments but an increase in interest.

It is commonplace amongst many credit card issuers, it is what they do if they feel a customer has become at greater risk of defaulting / falling into arrears. The increased interest is to offset the risk and ensure you don't loose them money if the worst happens.

You can opt out of the increase by agreeing not to put new spending on the account and just repay the balance at the pace and rate you are already. Your choice

Saints2011

As previously posted on another post, if you do not want to close cc try calling card services and seeing if you can open a new Plat or Advance CC for new customer offers, you can only ask

choc_mouse

They reduced mine to 13.9% last month.