My Bank forced an interest rate increase on my C/Card

The_Real_Ferintosh

Hi All,

I'm new to this forum so please forgive me if I am asking a question which has already been answered in another forum.

I have a credit card with my bank and it is very near to its limit. I pay every month a little over the minimum amount and have never missed a payment.

My bank wrote to tell me they were increasing the interest rate on my outstanding balance and I contacted them refusing to accept it, so they left it as was at first. Then, a few months later, they wrote again to say they were increasing the interest, but this time, they inserted a sentence in the letter to say that if I refused to accept it, they would close the card, transfer the balance to a loan and warned that this would affect my credit rating.

Can anyone tell me if they've had a similar experience and what if anything can be done about it?

Thanks in advance.

CC-Warrior

With me they offered to freeze the interest rate as long as I closed the account. Not sure if that affected the credit rating or not, but it's better (from a debt point of view) to have a lower APR and no longer use it?

CLAPTON

The_Real_Ferintosh wrote: »

Hi All,

I'm new to this forum so please forgive me if I am asking a question which has already been answered in another forum.

I have a credit card with my bank and it is very near to its limit. I pay every month a little over the minimum amount and have never missed a payment.

My bank wrote to tell me they were increasing the interest rate on my outstanding balance and I contacted them refusing to accept it, so they left it as was at first. Then, a few months later, they wrote again to say they were increasing the interest, but this time, they inserted a sentence in the letter to say that if I refused to accept it, they would close the card, transfer the balance to a loan and warned that this would affect my credit rating.

Can anyone tell me if they've had a similar experience and what if anything can be done about it?

Thanks in advance.

which CC was that?

can you post up the EXACT wording of the letter

[Deleted User]

That's correct, Martin has a guide on here to help.

Not sure about the credit raiting part though... I do wonder if the wording makes things seem a little more "legal" and you have understood it to mean "loan" and it may say "failure to repay may affect your credit raiting".