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

immoral_angeluk

They have the right to vary your interest rate after giving the appropriate notice. You're not going to get anywhere complaining to the FOS, it's very clear that it's a 'variable' rate. Your past repayment history, income, type of card really means nothing really s if the bank want to up your rate to boost their profits they can do.
You normally have the option, however, to reject the rate rise and close the account, which will mean you can repay the balance at your current interest rate, and once it's paid off the account is closed. You aren't allowed to use the card again though and if you do the rate will be whacked up to the increased rate.

Rupert_Bear

I have received a letter from Lloyds confirming my apr of 11.3% on a limit of £15k. I assume I must be regarded as on of their preferred customers.

loveandlight

posted by Rupert Bear
I have received a letter from Lloyds confirming my apr of 11.3% on a limit of £15k. I assume I must be regarded as on of their preferred customers.

For all of five minutes they will regard you as one of their preferred customers so enjoy the thought while it lasts.

patrick0

I can't see why people are getting upset about it. Many credit card suppliers increase card rates for customers who are trapped and can't afford to pay the full amount. That's how they make their money and fund the loss making 0% card offers.

Lloyds TSB are only likely to get more ruthless. Now that the old boss of Santander UK has moved there, he'll be wanting to do exactly what he did at Abbey National -- ie. reduce the "cost:income" ratio by laying off as many bank staff as possible and hiking up credit card and mortgage interest rates. And in return he'll get a huge pay packet and bonus and the tax payer (who now own LTSB) will be better off.

You need to concentrate on paying off your debt. You can always turn down the rate rise and stop using the card for purchases.

pcrich

patrick0 wrote: »

You need to concentrate on paying off your debt. You can always turn down the rate rise and stop using the card for purchases.

Its already been done, like I said before I am not a customer who deserves a high interest rate as I have no money worries at all, I use credit cards in a way that works for me not the banks. What I find not right though is what about those who are unable to afford to do that.

I have also paid off slightly more than the full balance. This leaves a penny in credit, that way they have to keep on sending statements for a while and it ill cost them even more money. I am so unhappy with my treatment I will do all I can to cost them more to run my account in the long run. They want to treat me in a way I think is unfair, then I will do the same.

pcrich

loveandlight wrote: »

For all of five minutes they will regard you as one of their preferred customers so enjoy the thought while it lasts.

Yeah that how it used to be for me, nothing has changed financially I still have the £15000 limit, but they have just attempted to make more money

Rupert_Bear

loveandlight wrote: »

For all of five minutes they will regard you as one of their preferred customers so enjoy the thought while it lasts.

Well have been on that rate for the last 2 years. As you are probably aware the 11.3% is for cash advances as well.

ILW

pcrich wrote: »

Its already been done, like I said before I am not a customer who deserves a high interest rate as I have no money worries at all, I use credit cards in a way that works for me not the banks. What I find not right though is what about those who are unable to afford to do that.

I have also paid off slightly more than the full balance. This leaves a penny in credit, that way they have to keep on sending statements for a while and it ill cost them even more money. I am so unhappy with my treatment I will do all I can to cost them more to run my account in the long run. They want to treat me in a way I think is unfair, then I will do the same.

You seem to be taking it personally, which is a little childish.

fozmcfc

You wanna hope they don't do yer for putting your credit card into credit, which is normally against the T&C's of the card.