LLoyds TSB increasing interest rates on credit cards with no good reason

pcrich

LLoyds TBS have just sent a letter informing me that they are increasing the interest rates on my two platinum credit cards with out any good reason other than, they state "it is in their terms and conditions that they can". I was under the impression to have a "platinum card" required some kind of excellent credit rating and therefore despite no change in my circumstances they can up the rate without good reason. I have a limit approaching £23,000 so that would back that thought up.

I have never gone anywhere near my credit limit, I have never missed a payment (on any card) or any other payment actually. I have never drawn out cash on the card , or paid for gambling transactions, I have never paid only the minimum payments for the cards, I have never gone overdrawn in over 30 years of having a current account or done anything else that could in the widest terms be classed as risky behaviour.

I usually run up a small balance for items usually holiday spending etc and then pay it off over a few months when I return. This has been done for the last three years, but for some reason they have now jacked up the interest rate this year, or rather tried to I have cancelled both cards after 10 years of loyal custom with the bank.

I have made an official complaint as I am interested to see if the ombudsman would consider this to be a "fair" way to treat customers, I would ask that anyone else receiving this type of letter does the same
If enough of us complain about unfair treatment then maybe their actions will be called into question.
I have told them their letter is an attack on my good character as it indicates I have doen something wrong despite not ever doing so.
I suspect it is yet another attempt to increase profits and nothing more.:(:(:(:mad::(:(:(

KingElvis

Loyalty means nowt to banks......

Guess they're trying to make as much cash as they can out you.

opinions4u

pcrich wrote: »

LLoyds TBS have just sent a letter informing me that they are increasing the interest rates on my two platinum credit cards with out any good reason other than, they state "it is in their terms and conditions that they can".

That will be because their T&Cs say they can.

I was under the impression to have a "platinum card" required some kind of excellent credit rating and therefore despite no change in my circumstances they can up the rate without good reason. I have a limit approaching £23,000 so that would back that thought up.

They can still vary your rate.

I have never gone anywhere near my credit limit, I have never missed a payment (on any card) or any other payment actually. I have never drawn out cash on the card , or paid for gambling transactions, I have never paid only the minimum payments for the cards, I have never gone overdrawn in over 30 years of having a current account or done anything else that could in the widest terms be classed as risky behaviour.

Well done.

I usually run up a small balance for items usually holiday spending etc and then pay it off over a few months when I return. This has been done for the last three years, but for some reason they have now jacked up the interest rate this year, or rather tried to I have cancelled both cards after 10 years of loyal custom with the bank.

You'd be better off saving up before you go on holiday.

I have made an official complaint as I am interested to see if the ombudsman would consider this to be a "fair" way to treat customers, I would ask that anyone else receiving this type of letter does the same

What are your grounds for complaint? "The big nasty card company varied the rate on my variable rate credit card"? Do me a favour, save the valuable resources of the FOS for those who have genuine problems with their bank.

If enough of us complain about unfair treatment then maybe their actions will be called into question.

Their actions are fair. It's a commercial decision. If you don't like it go elsewhere. That's the end of the matter.

I have told them their letter is an attack on my good character as it indicates I have doen something wrong despite not ever doing so.

No it isn't. It's an attempt to make more money out of you. Don't like it, go elsewhere.

I suspect it is yet another attempt to increase profits and nothing more.

And why do banks exist?

jonnyd281

They've got to pay the bill for all the PPI they're repaying somehow. The money has got to come from somewhere.

burnsy89

Yet another example of people who mistake banks for charities!!!

I have worked for a few banks and day in day out people would make official complaints for all the following reasons:

We didn't notify them that the bonus had dropped off on their variable rate accounts and they want the interest backdated
We offer better rates to new customers than we do to our existing customers - which is not true
We've increased the rate on their credit card
We've reduced their overdraft limit for no apparent reason
We've asked to see ID for their new account application even though they've banked with us for X amount of years and have Y amount of accounts with us
It's a nightmare trying to get the right department - "Where did you get this number?" - "Saynoto0870.com" - What do you expect? Ring the number on your letter in future

And I'm sorry, when the bonus rate comes off and it's 0.5%, please explain your rationale behind your claim that your money would be better off "under your floorboards" - the last time I checked, my floorboards weren't matching the base rate and I'm pretty sure any money stored in them wasn't covered under the Financial Services Compensation Scheme

We live in a nation of complainers!! Everybody's in it for either a freebie or an easy life and expect everything handed to them on a plate.

Rant over

chattychappy

burnsy89 wrote: »

It's a nightmare trying to get the right department - "Where did you get this number?" - "Saynoto0870.com" - What do you expect? Ring the number on your letter in future

I'm sympathetic to that one!

Mikhail

They don't need a reason......

tomatoe_2

Lloyds is 42% govt owned at the moment but it was never intended to be a permanent situation. Lloyds profits will be used to pay that back as soon as possible. Expect ruthlessness from them whilst trying to do that, note the £5 monthly charge for using an authorised overdraught which they have introduced for current accounts.
If you are unhappy with their style then change banks. Barclays and HSBC had no govt bailout money so their policies and attitudes are not being pushed or pulled from an outside influence.

Its up to you, do your own research.

pcrich

burnsy89 wrote: »

Yet another example of people who mistake banks for charities!!!

I have worked for a few banks and day in day out people would make official complaints for all the following reasons:

We didn't notify them that the bonus had dropped off on their variable rate accounts and they want the interest backdated
We offer better rates to new customers than we do to our existing customers - which is not true
We've increased the rate on their credit card
We've reduced their overdraft limit for no apparent reason
We've asked to see ID for their new account application even though they've banked with us for X amount of years and have Y amount of accounts with us
It's a nightmare trying to get the right department - "Where did you get this number?" - "Saynoto0870.com" - What do you expect? Ring the number on your letter in future

And I'm sorry, when the bonus rate comes off and it's 0.5%, please explain your rationale behind your claim that your money would be better off "under your floorboards" - the last time I checked, my floorboards weren't matching the base rate and I'm pretty sure any money stored in them wasn't covered under the Financial Services Compensation Scheme

We live in a nation of complainers!! Everybody's in it for either a freebie or an easy life and expect everything handed to them on a plate.

Rant over

I dont expect them to be charities in any way, but I do expect them to be fair. They cant send a letter explaining that the reasons for doing someting are...etc, when in fact none of the above apply.
The other point they make is that I may be more of a credit risk for whatever reason that has yet to be disclosed. Then why send me an offer of 0% for 9 months the very next day which wold encourage me to move more debt to them?

willstewart

pcrich wrote: »

I dont expect them to be charities in any way, but I do expect them to be fair. They cant send a letter explaining that the reasons for doing someting are...etc, when in fact none of the above apply.
The other point they make is that I may be more of a credit risk for whatever reason that has yet to be disclosed. Then why send me an offer of 0% for 9 months the very next day which wold encourage me to move more debt to them?

Either there are different departments that don't bother in the slightest to communicate with one another, or they're hoping you'll transfer loads of money, not pay it back during that 9 months and then £££ extra for them.

I do believe they should have to by law give definite reasons as to any increase, closure of accounts out of the blue etc. We all know it's greed at the end of the day rather than the bull they come up with and people should have the chance to appeal rather than them hiding behind T&Cs all the time as their justification.

Thrugelmir

jonnyd281 wrote: »

They've got to pay the bill for all the PPI they're repaying somehow. The money has got to come from somewhere.

Totally agree. No longer will products be cross subsidised. Each product will have to stand on its own merit in terms of profitability.

Days of free current accounts are numbered.