TSB Credit Card % Scam

kjc2561

Hi, i followed a thread on Lloyds TSB for a Platinum 15 Month Balance Transfer Card, as advertised.
Representative 17.9% APR (variable).
0% interest for the first 15 months on balances transferred in the first 90 days (3% fee).*
I was accepted with a £2000 limit & low & behold it had changed to a massive 25.9% APR
Also no mention of the
** The standard balance transfer fee of 3% will be applied when a balance transfer is processed. For example, if a customer transfers £1,500 a BT fee of £45 will be applied. We'll refund 66.6% of that, i.e. £30 into the customer's credit card account within 60 days of the qualifying balance transfer completion date. Minimum balance transfer amount is £100.
This is a con & people who are desperate will accept these extortionate rates & terms & get themselves even deeper in debt.
Moneysaving expert should not advorcate these companies.

rb10

There's no con, and no scam.

kjc2561 wrote: »

Hi, i followed a thread on Lloyds TSB for a Platinum 15 Month Balance Transfer Card, as advertised.
Representative 17.9% APR (variable).
0% interest for the first 15 months on balances transferred in the first 90 days (3% fee).*
I was accepted with a £2000 limit & low & behold it had changed to a massive 25.9% APR

This is clearly explained on their website - just click 'Your APR explained'.

kjc2561 wrote: »

Also no mention of the
** The standard balance transfer fee of 3% will be applied when a balance transfer is processed. For example, if a customer transfers £1,500 a BT fee of £45 will be applied. We'll refund 66.6% of that, i.e. £30 into the customer's credit card account within 60 days of the qualifying balance transfer completion date. Minimum balance transfer amount is £100.

I have no idea what you mean by this. There clearly is mention of it, as in your post you have quoted directly from the LTSB website.

kjc2561

It should therefore clearly state 17.9 - 25.9 % not drop it in at the end,

rb10

kjc2561 wrote: »

It should therefore clearly state 17.9 - 25.9 % not drop it in at the end,

It's hardly 'dropped in at the end'.

Firstly, where it says 17.9%, this is proceeded by the text 'Representative example'. And it is just that, an example.

The full explanation of how your APR works is the first drop-down box on the page - so it's very prominent.

All credit cards work this way: the 'representative' rate that is advertised has to be given to at least 51% of applicants. Then there'll be another one or two tiers of rates for the higher-risk customers.

Paul_the_Painter

It's not a scam, it's how ALL credit cards and loan companies advertise rates. Someone will be among to explain, but I think it's 50% of successful applicants have to receive the advertised rate.

As you shouldn't be using your card for purchases anyway if you have transferred a balance to it, I REALLY don't see your problem. Why would you care what interest rate they will be charging in a year's time? Presumably you'll be transferring the balance again, or will have paid it off.

iAMaLONDONER

kjc2561 wrote: »

It should therefore clearly state 17.9 - 25.9 % not drop it in at the end,

Legally only 51% have to get the representative (headline) rate most of the other 49%* have get a higher rate

* You due to your credit history and the information you gave in the application meant you were among the 49% who got a higher rate

The application does say its all due to status

yangptangkipperbang

kjc2561 wrote: »

This is a con & people who are desperate will accept these extortionate rates & terms & get themselves even deeper in debt.
Moneysaving expert should not advorcate these companies.

The above actually means: "I didn't bother reading what I signed up to" ..................."so I'll blame someone else"...............

opinions4u

The word "scam" in he title on MSE means:

1. I've not read things properly.
2. I don't like the price.
3. I've done something stupid and it's upsetting me.

Rarely, if ever, is a scam involved.

JakeGreen

I think the OP needs to lurk more to learn a bit more about how the credit card game works.

There's nothing wrong with the terms of the card.

kjc2561

yangptangkipperbang wrote: »

The above actually means: "I didn't bother reading what I signed up to" ..................."so I'll blame someone else"...............

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kjc2561

opinions4u wrote: »

The word "scam" in he title on MSE means:

1. I've not read things properly.
2. I don't like the price.
3. I've done something stupid and it's upsetting me.

Rarely, if ever, is a scam involved.

Forum Etiquette
The MoneySavingExpert.com forum is a place to share info and tips with others, discuss MoneySaving and pick up ways to save. We hope you'll enjoy it, but ask you to remember it's a broad church with many different types of people. Follow these basic rules to make it a good place to be.

Please be nice to all MoneySavers : There's no such thing as a stupid question and, even if you disagree, courtesy helps.
Please be sensitive : This may be a web forum, but you're still talking to other human beings. Repeatedly or harshly saying someone's wrong, especially on boards like DebtFreeWannabe, Bankruptcy or Benefits, can lead to upset.

We're proud that many people whose financial problems exacerbate mental health issues seek help in the forum, but this means you may be berating someone who's clinically depressed. Please think twice before posting judgmental comments.