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

Fiddlestick

Marxist wrote: »

The bank is hiding behind 'Terms and conditions' on this one, but it's an unfair term to be allowed to change their interest rates as they see fit, especially on money you have already borrowed, and if it IS in their terms, it should be removed.

Not at all.

It's a variable rate - the bank told you they wanted to vary it.

On top of that you can opt out of any rate increase and pay the existing borrowing back at the same rate at which you borrowed it.

You did read the T&Cs, right?

Rupert_Bear

countrygirl84 wrote: »

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

Thats my usual apr but promo rate zero percent for six months.

cavim

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??!

I know just what you mean about some of the responses on these forums! Forums like this are here for members to support each other, not slam our comments or criticise our behaviour. I've complained to MSE in the past about certain individuals' destructive comments, and will continue to do so!
I also know just what you mean about LTSB and their recent interest rises. I expect such unethical/immoral behaviour from companies like MBNA; I don't expect it from companies like LTSB (especially when I've banked with them for over 20 years and worked with them in the past as well!). In my case, I thought a recent 5% rise was bad enough!
Fair enough if card companies wanted to (justifiably) increase interest rates by, say, half a percent once a year if rates are rising generally, but these rises are unfair and immoral and it's these actions by card companies/banks that are pushing people into debt. How on earth can we manage our cards and repay balances if the goalposts keep moving every few months (and, if we've several cards, this sort of thing is happening too often!). Loan agreements can't be changed mid-term, so why should credit card agreements be able to??
The FSA and Ombudsmen need to put a stop to these behaviours by card companies and limit (a) the amount of interest that can be charged (eg x% above bank base rate) and (b) the percentage rise a company can charge. (I know they're already limited as to how often they can increase rates). Agreements should also be worded so that, once we've agreed to terms, those terms can't be changed.
Very few of us would have started the balance-transfer cycle if we'd had fair and realistic interest rates in the first place, and these rates had remained consistent and fair. I'm sure most of us would rather have fair rates linked to bank base rate, and know that rates will remain reasonable, than have to continually administer and (try to) manage our cards to ensure we can keep our heads above water.
Don't stop posting because of negative responses, countrygirl (I nearly stopped posting myself); some of us here are supportive and I've received some invaluable help and support from some other forum users.
Best wishes.

ElmerFudd

dtsazza wrote: »

On the contrary, I'm with coolesticeking on this one - it's a variable rate arrangement, so you don't really have any grounds to be upset when the rate varies. It's not like this is unusual for credit cards either - as far as I know, the vast majority of CCs operate in the same way.

Since they've given 60 days' notice, and the customers have the right to reject the rate increases, I don't see anything to get excited about here.

When did the 60 day rule come in?

ILW

I have some helpful and constructive advice to stop people getting into these situations which they seem to think are so unfair.

If you do not want to risk being hit with rate increases, do not borrow money on variable rate agreements. Seems pretty straightforward to me.

choc_mouse

In defence of LTSB, they reduced my APR from 18.9% to 13.9% not so long ago. It works both ways.

dorisday

cavim wrote: »

I know just what you mean about some of the responses on these forums! Forums like this are here for members to support each other, not slam our comments or criticise our behaviour. I've complained to MSE in the past about certain individuals' destructive comments, and will continue to do so!
I also know just what you mean about LTSB and their recent interest rises. I expect such unethical/immoral behaviour from companies like MBNA; I don't expect it from companies like LTSB (especially when I've banked with them for over 20 years and worked with them in the past as well!). In my case, I thought a recent 5% rise was bad enough!
Fair enough if card companies wanted to (justifiably) increase interest rates by, say, half a percent once a year if rates are rising generally, but these rises are unfair and immoral and it's these actions by card companies/banks that are pushing people into debt. How on earth can we manage our cards and repay balances if the goalposts keep moving every few months (and, if we've several cards, this sort of thing is happening too often!). Loan agreements can't be changed mid-term, so why should credit card agreements be able to??
The FSA and Ombudsmen need to put a stop to these behaviours by card companies and limit (a) the amount of interest that can be charged (eg x% above bank base rate) and (b) the percentage rise a company can charge. (I know they're already limited as to how often they can increase rates). Agreements should also be worded so that, once we've agreed to terms, those terms can't be changed.
Very few of us would have started the balance-transfer cycle if we'd had fair and realistic interest rates in the first place, and these rates had remained consistent and fair. I'm sure most of us would rather have fair rates linked to bank base rate, and know that rates will remain reasonable, than have to continually administer and (try to) manage our cards to ensure we can keep our heads above water.
Don't stop posting because of negative responses, countrygirl (I nearly stopped posting myself); some of us here are supportive and I've received some invaluable help and support from some other forum users.
Best wishes.

Just had to say the above posting is excellent.
The financial institutions want to watch out at some stage (may take many years) we Joe public will be fed up with such high interest rates and we may stop borrowing and save for what we want as we did many years ago. They are going to frighten us so much we will stop and think is it worth it!!
The public can only be pushed so far untill we snap.

Cell

I've just been catching up with some old threads and felt moved to comment on this particular one.

All those who have rather dismissively mentioned the 60 day rule are absolutely right.

But did the banks and credit cards volunteer this relief? Did they chuff. They were forced into it by the government who took their lead from sites like MSE and these forums.

Once upon a time there will have been threads on here which said how unfair it was that companies could put up their rates indiscriminately without appeal or choice. It pushed many into IVAs and the like or heaped misery on indebted familes. Now that weapon has been lost. It happened because of consumer power, no matter how indirect.

To to O/P - some of the replies have been uncharitable but don't ever give up the good fight. If we all gave in then nothing would change. Banks and credit card companies need to be challenged every step of the way.

Rupert_Bear

Just had my Lloydstsb credit card statement today and they advise my apr is 11.9%. So still quite competitive for purchases. However for cash advises (which I have never done) the apr is 27.9%.

pvt

Rupert_Bear wrote: »

Just had my Lloydstsb credit card statement today and they advise my apr is 11.9%. So still quite competitive for purchases. However for cash advises (which I have never done) the apr is 27.9%.

Yes. That's a jolly good rate for borrowing money. A fraction under 24 times the current BoE base rate. :T