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

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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.

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  • CC-Warrior
    CC-Warrior Posts: 323 Forumite
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    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
    CLAPTON Posts: 41,865 Forumite
    Combo Breaker First Post
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    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]
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    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".
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