MSE News: Halifax credit card holders urged to act ahead of rate hikes

ElmerFudd

Thanks YorkshireBoy

plumber2009

ohh the days of cheap and easy credit are truly over.

Time to ditch credit all together and just save a tone of money in intrest.

All these changes just serve to increase the number of defaulting customers and bankrupts. The banks never learn.

ElmerFudd

I have to agree with plumber2009. All the recent changes have done for me is make me struggle more to find the cash. This time 3 years ago I had around the same amount of debt but less income and was able to service the debt, pay my bills and put some extra toward the card that was the worst at the time (11%). With all the recent changes the bad CC has shot up to 24.9% (having gone up three times 16.9%, 21% and now 24.9%) and of course now things are tight.

torrenter

So, by this article am I right to intrepret that the new deal they will migrate me to in 2012, as a Clarity Card customer might be something along the lines of 17.45% plus 0.5% base rate? And that's if the base rate stays the same. But that by the same token if the base rate was to shoot up to 4.5%, I could end up paying paying 21.95%?? It's not quite so attractive now is it? I mean, as a card to use abroad? Cheap cash withdrawals etc.

It sounds like this card will only be good for the rest of this year. Anyone else thinking on the same lines?

TPAOY

Is there any intention of Martin or Which? or anyone else fighting this?

Seems to be a blatant manipulation of the current rules regarding interest rate changes to allow changes as and when the bank wants.

opinions4u

Halifax have actually capped what they can charge in future, by limiting themselves to BBR.

So the old habits of "5% rise because we can" are being stopped. Typically card rates move up by more than base rate when there is a change. Not with this.

So while I would always suggest finding the cheapest card, and personally advocate clearing the balance fully every month, for those retaining a live credit card this could actually be beneficial.

For those who don't want to keep using the card and can't switch the debt or clear in full, make a call and freeze the interest.

But the changes are nothing to get hysterical over. Assume there's a commercial agenda. Work out if you think you win or lose, then act accordingly.

scott_lithgows

Perhaps they have found a loophole in the law and are using it to their advantage.I got 2 of these letters and would like to be able to tell them to close it if it goes above 20% but cant.Will need interest rates to go up by 5% for this to happen so if this happens it will be balance transferred and closed.

bouncydog1

Also got the letter - together with a 15 months bt @ 0% (3% fee).