RBS Balance Shrinker Credit Card change of lifetime fixed rate APR - is this allowed

RichyH

I have an RBS balance shrinker credit card which I have had for two years or so, the balance was on a lifetime fixed rate of 8.9% with a 2% bonus credit made to your card of the outstanding balance every 5 months, so more than 4% of the balance credited every year, so it equated to a 3.9% apr approximately which is great. However RBS have written to me and said they are changing my fixed (!?) rate to 6.9% and getting rid of the 2% credit they pay to the card every 5 months. This is not the same fixed deal I signed up for and only benefits RBS - are they allowed to break the contract in this way and if not what can I do about it? Many thanks, Richard

opinions4u

It depends how the T&Cs were worded.

I'd hazard a guess that the rate was contractual but the rebate wasn't.

So they can change the rate in your favour only but do whatever they like with the rebate.

I'd suggest asking (as in official complaint) them how they justify it. If you're not happy with the response take it to the FOS.

yellowplum

opinions4u wrote: »

It depends how the T&Cs were worded.

I'd hazard a guess that the rate was contractual but the rebate wasn't.

So they can change the rate in your favour only but do whatever they like with the rebate.

I'd suggest asking (as in official complaint) them how they justify it. If you're not happy with the response take it to the FOS.

I received this notification also, I have both the RBS Card and also the Natwest card that was the same. I must say that the RBS card could never manage the provide the rebate in the first place and I had to complain on each and every occasion that it had to be refunded.

T&Cs - I have the old leaflet from RBS which I can scan and send to anyone that requires it (not sure how to upload it here to enable everyone to see it).

According to Clause 9. On giving 6 months notice to you we may terminate the rebate scheme and on giving you 30 days notice we may change these rules, the transactions that qualify for the rebate and the rate at which the rebate is earned...

The Natwest T&Cs are different and will look for those and see what I have.

Reminder to check your statements and make sure you had been refunded correctly, as I previously stated RBS did not refund me correctly over the entire period. I will be looking closely at this and going through it again to see.

In brief, you had to transfer within 3 months of account opening, your first 2% rebate was given on the date of the 8th Statement from account opening (so should have appeared as a refund on statement of the following month) thereafter on the date of every 5th statement (should appear as a credit on statement produced the following month).