LloydsTSB Credit card services attempt to push interest up by 5%. Check your account

countrygirl84

10.4% APR? That's less than they're advertising. Is that a deal they were offering for a certain time period?

fozmcfc

All APR's are variable and they have varied it, they don't need a reason, they don't have to give you a reason.

They have to tell you, you can reject the rate rise and pay off the balance at the current rate.

That is exactly what they have done.

You have absolutely no rights other than to close the card and pay off the balance at the current rate.

i.e. you can complain to them, if they say tough, end of.

countrygirl84

fozmcfc wrote: »

All APR's are variable and they have varied it, they don't need a reason, they don't have to give you a reason.

They have to tell you, you can reject the rate rise and pay off the balance at the current rate.

That is exactly what they have done.

You have absolutely no rights other than to close the card and pay off the balance at the current rate.

i.e. you can complain to them, if they say tough, end of.

I appreciate that the rate is variable and they are able to change it when they want providing they give sufficient notice. But to increase it by 10% in 6 months is ridiculous!!! Are they trying to force people further into debt?! My NatWest credit card on the other hand has increased by about 2% in the 8 years I've owned it! Now that is reasonable. Lloyds TSB on the otherhand.....?

fozmcfc

Then you have a choice, close account and walk away from them, paying back at the current APR. As far as I'm aware you have until whenever you want to pay it back as long as you meet the minimum repayments every month.

If you can transfer to another card at a lower APR.

If you have other accounts with them you may have some bargaining power like the OP did.

The whole point is we have no rights to even hold an account with them, they hold all the cards.

Basically they could go even further and tell you they are closing your account, again without even having to give a reason other than you no longer meet their lending criteria.

Egg closed thousands of accounts, many in good stead some years ago, that was their choice and nothing can and was done about it.

As for the watchdog thing, well TBH watchdog generally can only warn people about things and that is it. I'm sure those who produce the program know full well that Lloyds are within their rights, even if 100,000 people complain to them.

ILW

You do not have to accept the increase, if you do not all it means is that you cannot borrow more money on the card. I cannot see what anybody is complaining about, or am I being very dumb.

fozmcfc

You're not missing anything, people don't like the fact their variable APR is being raised and wish to complain.

As I have pointed out, they can complain (really should be appeal), but they have no rights and unless they can force Lloyds arm by threatening to take savings etc away from them (like the OP did), they are likely to be told either accept it or close the card and pay off at current rate.

countrygirl84

Ouch! Some people are a little grouchy! I thought that these forums were for help and advice or am I mistaken? Lloyds TSB (after I have been a loyal and good customer) have decided to raise my interest rate by 10%! Now to me that's an extra £450 per year to pay in interest!!! And you're telling me that I don't have a right to complain or moan about this fact??! If you have nothing positive to say, then please don't comment. I'm looking for people in the same situation. You obviously have lots of money and hardly any or no debt at all because if you were placed in the same situation then I'm damn sure you would complain also!!! I am not a high risk customer, I have a very good job with a very good income but I do not see how companies can do this and force you further into debt. And then they blame the idiots that lost all the money in the banking crisis. Like that's my fault??!

agrinnall

countrygirl84 wrote: »

Ouch! Some people are a little grouchy! I thought that these forums were for help and advice or am I mistaken? Lloyds TSB (after I have been a loyal and good customer) have decided to raise my interest rate by 10%! Now to me that's an extra £450 per year to pay in interest!!! And you're telling me that I don't have a right to complain or moan about this fact??! If you have nothing positive to say, then please don't comment. I'm looking for people in the same situation. You obviously have lots of money and hardly any or no debt at all because if you were placed in the same situation then I'm damn sure you would complain also!!! I am not a high risk customer, I have a very good job with a very good income but I do not see how companies can do this and force you further into debt. And then they claim the idiots that lost all the money in the banking crisis. Like that's my fault??!

While I also wouldn't be happy to have my rate raised by 10%, if you've got a very good job and a very good income why don't you just live within your means, pay off your cards and save yourself the extra £450 per year?

countrygirl84

Because we got married 12 months ago and are now expecting our first baby in just a couple of months. Some things just cost more than you can afford. We will be debt free in 3 years if everything remains the same. That credit card balance was £10k 12 months ago!

Marxist

fozmcfc wrote: »

All APR's are variable and they have varied it, they don't need a reason, they don't have to give you a reason.

They have to tell you, you can reject the rate rise and pay off the balance at the current rate.

That is exactly what they have done.

You have absolutely no rights other than to close the card and pay off the balance at the current rate.

i.e. you can complain to them, if they say tough, end of.

Quoting the legal obligations do nothing to change my stance in that there is a better way for them to do things than this forceful approach. You say we have no rights, we I say that's rubbish. Whose money is it that forms the banks financial worth. Ours!

Without our money, they would have nothing to invest with or at least far less and therefore would probably be more willing to settle for 20% APR rather than bump up to nearlt 25%.

Direct question to you fozmcfc... Do you think 20% is a reasonable figure for them to make each year from our borrowing? I am starting to wonder whether you may actually work for a bank, your type-tone is similar to how they speak on the phone... almost... heartless.

countrygirl84 wrote: »

Ouch! Some people are a little grouchy! I thought that these forums were for help and advice or am I mistaken? Lloyds TSB (after I have been a loyal and good customer) have decided to raise my interest rate by 10%! Now to me that's an extra £450 per year to pay in interest!!! And you're telling me that I don't have a right to complain or moan about this fact??! If you have nothing positive to say, then please don't comment. I'm looking for people in the same situation. You obviously have lots of money and hardly any or no debt at all because if you were placed in the same situation then I'm damn sure you would complain also!!! I am not a high risk customer, I have a very good job with a very good income but I do not see how companies can do this and force you further into debt. And then they blame the idiots that lost all the money in the banking crisis. Like that's my fault??!

My post was only made to try and help people like yourself.

agrinnall wrote: »

While I also wouldn't be happy to have my rate raised by 10%, if you've got a very good job and a very good income why don't you just live within your means, pay off your cards and save yourself the extra £450 per year?

I think a lot of people come to this realisation eventually. Unfortunately money is something many of us are never born with a lot of and strive to achieve. Many of us don't actually earn enough to pay for the lifestyle we would actually like to live because our bosses are generally skin flints that won't give more money to the hard workers because they can get away with it. By the way I now work for myself now which is much better, but I'm still not giving me a pay rise.

Our society shows success measured by money, and it is hard when someone like a bank waves five grand at you for '£50 a month' to walk away from (for some people). For some it buys the few luxuries that make life more enjoyable. Geberally when you're younger you don't have much so it starts you off.

countrygirl84 wrote: »

Because we got married 12 months ago and are now expecting our first baby in just a couple of months. Some things just cost more than you can afford. We will be debt free in 3 years if everything remains the same. That credit card balance was £10k 12 months ago!

Probably a very common scenario. Good luck to you and the family ;-)

Call Lloyds and see if you can get the same agreement as I did to opt out and keep the same rate. Also think about any other accounts you hold with them that you would or could close if you were unsatisfied.