Halifax One hike in interest rates?

Rootless_Tree

Heya all,

I've just been accepted for a Capital One Platinum credit card and intend to transfer one of my other balances (I have three other credit cards) to it, not use the card for anything else, and pay the balance off interest free by May 2008.

So, I've been going through my statements for my other cards and I notice that Halifax One are upping my interest from 18.45% to a whopping 19.52% pa. This seems wrong - and way too high - even the original rate of 18.45% seems excessive compared to what I get from my other cards!

My balance is £5100 and my credit limit is £15000. I don't miss payments, always pay regularly, and have never been a problem.

Why am I being charged this whopping interest rate?

And is there anything I can do about it?

Thank you

Call_Centre_Monkey

Interest rates are going up across the board, so it's to be expected. If you give customer services a call they can transfer you through to customer retention who may be able to reduce your interest rate a bit - worth a try

keeperbear

Rootless_Tree wrote: »

Why am I being charged this whopping interest rate?

And is there anything I can do about it?

Interest rates have increased. In additiom, thousands of people are reclaiming bank charges, so the banks are trying to charge their other credit card customers more to compensate. Of course, many consumer advocates said this wouldn't happen (including Martin), but it has.

Rootless_Tree

I gave them a call yesterday and explained that due to the high rate of interest I was being charged, I was sensibly considering moving my money and custom elsewhere.

I was transferred to retentions who looked at my account, confirmed it was in excellent order and had always been run correctly - and asked me to call back next week when they would review it again, and try to lower the interest rate.

Wyndham

Rootless_Tree wrote: »

I gave them a call yesterday and explained that due to the high rate of interest I was being charged, I was sensibly considering moving my money and custom elsewhere.

I was transferred to retentions who looked at my account, confirmed it was in excellent order and had always been run correctly - and asked me to call back next week when they would review it again, and try to lower the interest rate.

And in the meantime you are still on the same high rate - if you are that good a customer, they should have been able to offer you something immediately.

I'd move I think!

Rootless_Tree

Wyndham wrote: »

And in the meantime you are still on the same high rate - if you are that good a customer, they should have been able to offer you something immediately.

I'd move I think!

Their excuse was that my account was just changing over to the new rate and they couldn't alter it.

I realised straight away I was being fobbed off. I'll give them a call at the end of the week and if they don't play ball - I'll be off.

Call_Centre_Monkey

Rootless_Tree wrote: »

Their excuse was that my account was just changing over to the new rate and they couldn't alter it.

I realised straight away I was being fobbed off. I'll give them a call at the end of the week and if they don't play ball - I'll be off.

They were probably right to fobb you off. If system-wide increase of interest rates were to go through a week after they decreased your rate, your account would still have been increased to the higher rate. Once the rate has actually increased on your card, then that is the correct time for them to action the decrease.

Makes sense in a round about way