Lloyds Credit Card Letter RE: Changing the way they calculate interest...

PeacefulWaters

thecasementkid wrote: »

Actually, my sarcastic friend, I've also got a 34 month 0% deal with Halifax where the rate is 18.9%.

Halifax? Part of Lloyds Banking Group!

If you can't see the profiteering Lloyds are trying to inflict on their cardholders

Of course they're trying to makes profits. Why would they exist if they didn't try to make a profit?

then don't bother commenting.

What sort of bizarre discussion forum do you think this is? You post on an open forum, people respond. It's how it works.

As soon as the interest free period is over, I'm ditching the card.

Good. I would.

Whilst I'm in a fortunate situation and can do that, my feelings are for the majority of account holders who can't and will be stuck with it.

Oddly, the majority of cardholders can switch whenever they choose.

Zeldazog

I've recently had a similar letter for my Halifax Credit Card.

Twice in the last year they've tried to put the rate up, I've phoned to reject the rate rise, knowing that it means them closing the card. But they look at my account and say "we can see you've been paying regularly, we will freeze the rate but you can still use your card".

I've now had this letter about the new way of calculating, and it means my minimum payment will go from something like £89 to £148.

I've been paying slightly more off each month than the minimum, but no way can I afford to pay over 50% more to them each month, and yes I know that paying barely above the minimum means taking longer to pay off etc, but not currently in a position to pay much extra.

I am sure the letter states that I can still reject this, but that the account will be closed down (which in my case, won't be a bad thing, if they close it, I cannot spend any more on it)

I do need to phone them up, there's a special number (think it's an 0808 as well) as in all honesty I could do with an interest drop, or a payment holiday, otherwise I may be heading for a DMP with this and other debts.

I have to say, I don't understand the breakdown example they give though, however I haven't got it to hand to explain what has confused me!

Lloyds_Bank

thecasementkid wrote: »

Thank you for taking the time to respond.

I'm fortunately not in a precarious financial situation and only recently took out a Lloyds card to take advantage of an 18 month 0% balance transfer rate.
However, the standard rate I've been quoted for transactions is 25.75%!! I'm assuming when this new calculation is in place, the overall rate will stay the same but be split 25.5% personal rate plus 0.25% current BOE rate, as the letter explains.
So what happens when BOE rates go back to 'normal' say 5%? My new interest rate will then be 30.5% in total. Are you trying to compete with the Payday loan sector now???
And, when my rate increases because of a BOE rise, can I turn to Lloyds and say sorry, freeze the rate and I'll pay it off, or will you say because it's a BOE inflicted rise, we can't do that and you'll have to pay it back at the new rate.
This is nothing more than Lloyds cleverly implementing a mechanism to take advantage of the inevitable BOE rate increases and being able to blame someone else for them. It stinks!

Hi again,

It appears you've received the letter entitled 'A new way to calculate your credit card interest rate' as opposed to the one about a new way to calculate each month's minimum payment.

You're correct that if the Bank of England Base Rate increases, your credit card's interest rate would increase by that amount. As mentioned, that's because the interest rate would be made up of the personal interest rate for your credit card account and the Bank of England Base Rate.

If you have received one of these letters and you don't want to accept the change, please do get in touch with us (before the 31st of January 2015). If you do that, your account will be closed and you'll need to repay the balance on the existing terms (at least the minimum payment each month until your balance is completely cleared).

If you don't reject the change meaning your account rate is linked to the Bank of England Base Rate and that rate then rises, you can get in touch with us about it. If you wish to complain or believe it will cause financial difficulties (which I do appreciate you've said you're not having just now), we'll discuss that. Alternatively, you could close the account (the rate would remain fixed) and you would have to repay the remaining balance on the existing terms. Again, that would be at least the minimum payment each month until your balance is completely cleared.

If you would like to talk about this further, please do get in touch with our specialist team on 0845 606 2172 (lines are open 24 hours a day).

Thanks,

Craig

too_much_debt

I checked my Lloyds credit card today and the payment has gone up from £110 a month to £131 this month. I thought the changes were from 1st March (need to see if I can find the letter).


I don't get statements online as I closed the account and Decembers one does not show up online now.


Anyone else had their minimum payment increase this month?


TMD

Lloyds_Bank

too_much_debt wrote: »

I checked my Lloyds credit card today and the payment has gone up from £110 a month to £131 this month. I thought the changes were from 1st March (need to see if I can find the letter).


I don't get statements online as I closed the account and Decembers one does not show up online now.


Anyone else had their minimum payment increase this month?


TMD

Hi too_much_debt,

If you received the 'The way we calculate your minimum payment is changing' letter then the change does come in on your March 2015 statement. For info on why this month's minimum payment amount is higher than you expected, please give our Credit Cards team a ring on either 01702 278 272 or 0845 606 2172 (lines are open 24 hours a day).

Thanks,

Craig

too_much_debt

Thanks Craig.


I called earlier today and spoke to someone who just said it's because there were more days in the month and that the minimum payment is not worked out on what the balance says on the statement. She said that the interest is less next month but this always happens, one month is more, then is lower the month after. It has never been £131 minimum payment before it has always been between £108 and £120.


She has made me an appointment at my local branch to talk to someone as I will struggle to pay £20 more this month, I worked it out to be £111 minimum payment and definitely won't be able to pay from March if it is going up by another £20 a month. I only get Child Tax Credits and Child Benefit and am short by £100 a month already which I'm having to withdraw from another card to cover the shortfall.


Out of the credit cards I have my Lloyds is the highest at 29.9%, the next one is 20.8%. I have banked with Lloyds since I was 19 (1987) and am now 45 so a bit peeved that my interest rate is so high and I don't remember ever getting a letter to say it would be going up to 29.9% as I definitely would not have agreed to it.


Thanks anyway for your reply.

SeduLOUs

I didn't think I'd get accepted for any BT cards either, but applied for a Capital One card based on the eligibility checker on this site.

It's only a £1000 limit, and the 0% is only until Jul 15. But it's better than a kick in the teeth and will give us a well needed break from the 39.9% interest Vanquis have been charging - should give me the opportunity to clear and close that sucker!