Co-op rate jack on members card

Highchair

While in the bank I was persuaded to have a Co-op members cards instead of normal one I already had. I have had the card a year or so and never missed a payment (they dd minimum). Last month they increased my credit limit to 10k, I had a 3k balance. i spend 1 to 2 k per month on this card and make similar additional repayments. Buying a kitchen took the balance to its highest ever (4k) and then I got a letter saying that they were putting the rate up from the advertised 15.9% to 21.9% and if I don't like it cut my card up and pay off the balance. Customer services were useless and in a week they sent their final letter, refusing to answer any of my questions. I now have to locate all the people this card is registered with and change cards and I will lose around £20 pm. dividend. Looks like the Co-op have joined the rest of the cartel of sleazy banks!

Thrugelmir

Highchair wrote: »

Looks like the Co-op have joined the rest of the cartel of sleazy banks!

Have you not been following the news and the Co-Op's financial woes?

Hominu

Not sure I understand.

If you pay off the balance each month anyway then the interest is a moot point.

If you don't pay of the balance each month, then surely the interest charged will be higher than the points/rewards you get.

Putting 4K on the card for a kitchen with the intention of paying it off over a number of months seems crazy. I spent 7K on a kitchen, but paid by cheque, got £500 cash back from the store and 2.1% interest from the bank.

Highchair

The interest doesn't bother me I am just cancelling the card. It's the attack on my good name I object to when I have £35k on deposit at the Co-op. I consider it Wonga type lending when they say they think you are more of a risk but increase not decrease a customers credit limit. If I think one of my customers is a risk I don't charge them more I just don't give them a big credit limit.

_Andy_

How is changing the price of a product 'sleazy'?

Thrugelmir

Highchair wrote: »

It's the attack on my good name I object to when I have £35k on deposit at the Co-op.

That's irrelevant. You could withdraw it all tomorrow. As its your money.

safestored4

The Co-Op are in desparate straits. They need your money to plug the financial black hole they have got themselves into and to continue to fund the anti fracking campaign that they have been bankrolling (see today's Daily Telegraph). Just pay up, it's all in a good cause, or so they would have you believe.