Sky high APR rate

Bron123

Hi, would anyone be able to give me some advice? The APR rate on my Santander zero credit card has increased from 18.9% to 35% over the course of 6 years. This seems really excessive do I have any rights or is this something I just have to take on the chin? Thanks..

[Deleted User]

No. But reject the next increase and close the account, so that it does not get increased further.

_Andy_

It's a variable rate product and the lender can choose what they want.
Ultimately if you don't feel it is competitive then take your business elsewhere.

Moneysaverchris

Do you have an outstanding balance?

Bron123

Thanks for replying everyone..
@Chris - I have £2600 on the card and paying a £100 by DD a month. The interest is £67!! I can't pay the card off in one hit and can only manage monthly repayments at the moment.

swardean

If a card company raises the interest rate, you do not need to accept it. You can contact the provider and explain that you do not want the product nor the increase. You will not be able to use the card but you will stay on your existing rate until the debt is paid off.

sfax

Every time they put the interest rate up you can decide not to pay the new rate. You close the account and continue to pay the balance monthly (with the old rate of interest applied) but you can't use the card for new transactions

yangptangkipperbang

That is how they can afford to pay 3% on their current accounts :rotfl:

chattychappy

They've done the same to me, but I don't care. It seems to have peaked at 35% - they've not put it up anymore. However I never pay more than a few days' interest at that rate.

Remember, ZERO is no longer available. Cancel it, and you're unlikely to be able to get it back.

Do you ever travel? It's GREAT for foreign ATM withdrawals/purchases. Purchases are loaded by 3% by most cards and ATM withdrawals even more. Not Zero. Yes you pay interest, even at 35% APR, but it's calculated daily and a few days at that rate is still pence.

If you're running a balance, try to transfer elsewhere but keep ZERO open. Oh and I've found they regularly come back with BT offers. Typically 0% for 12 months, 3% fee.

As per your direct question: yes they can increase the rate but you can reject within a period of time (?60 days). If you reject, the rate stays the same but you can't make further transactions. You just have to pay down the card in the usual way.

If it has been 35% for a while, then you're stuck with this rate but I doubt they'll increase it again.

bigadaj

chattychappy wrote: »

They've done the same to me, but I don't care. It seems to have peaked at 35% - they've not put it up anymore. However I never pay more than a few days' interest at that rate.

Remember, ZERO is no longer available. Cancel it, and you're unlikely to be able to get it back.

Do you ever travel? It's GREAT for foreign ATM withdrawals/purchases. Purchases are loaded by 3% by most cards and ATM withdrawals even more. Not Zero. Yes you pay interest, even at 35% APR, but it's calculated daily and a few days at that rate is still pence.

If you're running a balance, try to transfer elsewhere but keep ZERO open. Oh and I've found they regularly come back with BT offers. Typically 0% for 12 months, 3% fee.

As per your direct question: yes they can increase the rate but you can reject within a period of time (?60 days). If you reject, the rate stays the same but you can't make further transactions. You just have to pay down the card in the usual way.

If it has been 35% for a while, then you're stuck with this rate but I doubt they'll increase it again.

Or get a halifax clarity at 12%...

chattychappy

bigadaj wrote: »

Or get a halifax clarity at 12%...

True, but as I say, the interest really is irrelevant if it is for only a few days or you are making purchases and pay the balance in full each month. If the OP can get Clarity, then fine - but note that many get accepted at a higher rate.

Assuming the OP has a balance, then the main thing is to get a card to BT to. If (s)he travels alot, then I wouldn't abandon Zero without having another card such as Clarity. Indeed even then I still keep Zero as a backup because of the tendency of cards to get blocked overseas.