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CC interest tied to base rate - bankers win/win

gannett600 · 2011-11-08 19:47:28

As noted by a recent RAND(Squawk) blog posting we see that Lloyds Bank Platinum CC has announced that their Credit card interest rate will be tied to the Bank of England base rate. This is a bankers win/win for the following reasons: * CC interest rates never went down when rates went down. * The BOE Base rate is as low as…

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pqrdef Posts: 4,552 Forumite

11 November 2011 at 12:20PM

The really sneaky part about this is that when your interest rate goes up, they won't have to notify you, and they won't have to give you an opt-out option.

Normally, if they increase your interest rate, you have the option of cutting the card up and keeping your existing rate. But trackers are exempt from that.

"It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
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CC interest tied to base rate - bankers win/win

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