Creation Card - APR Hike

izools

Had my Creation card ~ 18 months, £4,500 limit now. Only recently increased - their decision, not mine.

Run well within its limit, often cleared in full not always, but certainly well over minimum without fail.

Had a letter saying they will increase my APR 24.9% in 60 days. Of course I will opt out.

What annoyed me is they have been told to tell all customers "It isn't a personal decision, they are doing it to all Creation card customers"

Are they? Sounds like a lie to me.

You-kip

izools wrote: »

Had my Creation card ~ 18 months, £4,500 limit now. Only recently increased - their decision, not mine.

Run well within its limit, often cleared in full not always, but certainly well over minimum without fail.

Had a letter saying they will increase my APR 24.9% in 60 days. Of course I will opt out.

What annoyed me is they have been told to tell all customers "It isn't a personal decision, they are doing it to all Creation card customers"

Are they? Sounds like a lie to me.

APR's should only be increased IMO if the customer misses payment or be late or go over their credit limit.

They should bring out a new law regarding this.

izools

Well it happened to me before with Sygma Bank.

To start with I had a Silver card and a MyWorld card - both initially with £1,000 limits and 19.9% APRs. I'd had them long enough for the limits to by that time be at £2,190 on each card but soon after they stopped offering them to new customers, I was written to advising my APRs would be increased.

I opted out, closed the accounts, and applied for the (then new) "Creation" card, which they happily offered me with a £3,000 limit and 19.9% APR.

I had to order a new card in Feb due to losing the old one, and noticed the design changed - initially it was purple with a silver stripe across the middle, and it was replaced with a metallic red card. It was originally a 15 Month 0% on BT card.

I notice that Creation don't advertise the "Red" Balance Transfer card any more, so putting 2+2 together here it seems more likely it's a business practice to get old customers off obsolete products.

I don't mind that, why don't they just say so? I'd be quite happy to close the account and apply for one of their other cards if they were honest but as it is I'll just close it and leave it at that.

opinions4u

You-kip wrote: »

APR's should only be increased IMO if the customer misses payment or be late or go over their credit limit.

They should bring out a new law regarding this.

So variable rate credit agreements can't be varied?

You'll see a lot less choice in the credit card market if you take that approach. Especially for those at the high risk end of things.

The opt out of rate increase if you stop using it is more than enough consumer protection.

You-kip

opinions4u wrote: »

So variable rate credit agreements can't be varied?

You'll see a lot less choice in the credit card market if you take that approach. Especially for those at the high risk end of things.

The opt out of rate increase if you stop using it is more than enough consumer protection.

I see where you're coming from but opting out is still not a good enough reason to hike someone's APR if the customer is continuing to play by the rules.

People don't get APR hikes because they are high risk they'll give to anyone to make a bit more coin.

izools

Well a manager called me back and was steadfast in his story that all customers on the same account I'm on are having their APRs increased.

I suggested to him that this was an out and out lie and invited them to perform a manual review of my account and have the underwriters review my credit file and tell me if they still want to increase my APR.

If they do, fine, I'll opt out, but it couldn't hurt to try various routes first, eh?

_Andy_

The price of bread in the local supermarket has just gone up - is that 'unfair' just because I've been buying it for the last few years?

Roland_Sausage

Both myself and the wife recently had our APR's increased on our Creation cards. My card was the one I was concentrating on paying off so was one payment away from a zero balance anyway. I have now closed it.

Also BT'd the balance away from the wife's card as it was getting to towards the end of the 0% period, and closed the account.

izools

_Andy_ wrote: »

The price of bread in the local supermarket has just gone up - is that 'unfair' just because I've been buying it for the last few years?

Yeah alright enough of the facetiousness - creation cards offered to new customers have a typical APR of 18.9% APR, not the proposed 24.9% APR they're laying on me.

The cost to Creation of lending hasn't increased.

You-kip

_Andy_ wrote: »

The price of bread in the local supermarket has just gone up - is that 'unfair' just because I've been buying it for the last few years?

Can't see how bread & Risk has got to do with anything unless they've had a lot of sliced bread theft recently and trying to recoup their losses.

Maestro.

You-kip wrote: »

APR's should only be increased IMO if the customer misses payment or be late or go over their credit limit.

They should bring out a new law regarding this.

I don't get this way of thinking it all. This just pushes people further into debt, which is something that should be outlawed, imo. Fair enough assessing people for risk when they make an application, but making people pay MORE when it's clear they're showing signs of debt stress? It's nonsensical and irresponsible.

I don't know about you guys, but a lender telling me they are going to increase my APR would be a fast track to losing a customer.