Increasing Payments

kahunababy

Hi,
Just wondering if anyone can help shed some light for me. I am sure there is a reasonable explanation but if I am totally honest I don't really understand all the jargon.

Basically, I have a Lloyds TSB credit card with a stupidly high limit which I even more stupidly have reached. I have been paying the minimum payment each month and have not spent on the card for the last 4 months. What I don't understand is how the minimum payment is going up? I have never payed late. My payments have risen by £30 in the last 2 months. I am not in a position to pay any extra off this account at the moment but will be able to clear it (or atleast greatly reduce it) come July next year. I just need to make sure I can keep my head above water till then only I am worried that my payments will keep going up.

I have been declined for another card so the option of balance transfering is a no go.

Thanks for any help.

dibuzz

Similar situation here, LloydsTSB raised the interest rate on mine a couple of months ago making my just above minimum payment not enough, they seem to enjoy picking on those struggling to make ends meet.

Tixy

Sounds like they have increased your interest rate. You should have got notification of this (either by seperate letter or on the bottom of your statement or email) and had a couple of months to opt out of it.

It sounds like you are probably too late to opt out of the increase if it happened 2-3months ago but might be worth checking back just to see when you were notified.

They shouldn't increase it more than once every 6months but keep an eye out, make sure you read your statements etc just in case they do notify you of a further hike so you can opt out next time.

If your rate has been hiked it might be worth a phone call to see if they might consider still letting you opt out/ drop back to the lower rate, occasionally this works for people.

kahunababy

Thank you for the reply, I fear you may be right and I did recieve something but I am almost certain it was regarding them changing the way they charge things starting in Nov?

You said there is the option to opt out, do you know how this works? Surly if they give you the option of paying less everyone would go for that (unless like me you don't read the small print)!

Thanks for the advice, will try calling them, whats the worse they can say?

Dabooka

When you opt out of the rate increase, you also in effect lose the account to new spending. You're able to make payments in the usual manner but you are unable to use it for new purchases etc.

HTH

redpete

kahunababy wrote: »

You said there is the option to opt out, do you know how this works? Surly if they give you the option of paying less everyone would go for that (unless like me you don't read the small print)!

You can decline their kind offer of an increase in the interest rate they charge you, but they will freeze the account to any further spending; this might not have been a bad thing in your situation.

n6u2k0e

I have a LLoyds credit card, they increased their rates a few months ago (July?), you should have gotten a separate letter telling you. Mine went up 0.05%.

Unfortunately I no longer have the letter to hand, so can't tell you what it says about opting out.

exel1966

kahunababy wrote: »

Thank you for the reply, I fear you may be right and I did recieve something but I am almost certain it was regarding them changing the way they charge things starting in Nov?

You said there is the option to opt out, do you know how this works? Surly if they give you the option of paying less everyone would go for that (unless like me you don't read the small print)!

Thanks for the advice, will try calling them, whats the worse they can say?

That very same letter also contained details of your new personal APR, how it was worked out and how/when it would be applied to your account.