Help!!!! Is This Unfair???

Dylanwing

Jamal - I doubt that we'll ever agree, but I do enjoy your posts and respect your opinions. With regard the credit card withdrawals, in many cases I really don't think it is individuals credit rating worsening, but a tightening of Bank criteria - In my case, my credit rating should be better now than it has been for years, but apparently not in the credit card world.
Regarding the case of changing from revolving credit to loan, my point is that without the card and revolving credit limit, the debt is just borrowed money being repaid with a continually reducing limit, so it is effectively a loan. We can argue this 'til the cows come home, but with the current crisis that might be a very long argument!
To end on a high, first time ever, I completely agree with you on this point -

banks are businesses out to make money

Have a great weekend.

thumshie

But the main difference between most Loans and a credit card debt once the facility (card) is removed is that the credit card debt can be repaid immediately without penalty. Most loans are for fixed periods or with a fee for early redemption. This is how they’ll justify the higher rate as they’re not guaranteed a long period of repayment.

knowledgeman

Theres nothing unfair about it at all

The bank are allowing you to continue to repay on the same terms, they just dont wish you to spend more

Banks have obligations morally when it comes to debt

Your argument is completely laughable, your in essence saying that because they wont let you rack up more debt they should reduce the amount you owe

Banks dont have to give you a card and its in their right to withdraw it at anytime

Tootsie_Roll

knowledgeman wrote: »

Banks dont have to give you a card and its in their right to withdraw it at anytime

Exactly ! They could just as easily demand rapyment in full immediately and then if you are unable to, load the interest rate even further. Be grateful they are allowing repayment over a length of time.

Dylanwing

Exactly ! They could just as easily demand rapyment in full immediately and then if you are unable to, load the interest rate even further. Be grateful they are allowing repayment over a length of time.

This may be legally correct, but morally pretty low, and is this not a consumer site to protect against bullying Banks? If they did that widespread, it would trigger somewhat of a collapse and I suspect that the Banks would significantly increase their bad debts. I can't imagine OP will be rushing out to buy a 'Thank You' card!

Tootsie_Roll

Dylanwing wrote: »

This may be legally correct, but morally pretty low, and is this not a consumer site to protect against bullying Banks? If they did that widespread, it would trigger somewhat of a collapse and I suspect that the Banks would significantly increase their bad debts. I can't imagine OP will be rushing out to buy a 'Thank You' card!

Well they haven't done it have they ? Instead they have allowed (as a concession) for the balance to be repaid over time yet you are still complaining that it is unfair. The point is they could do worse so be grateful for what you have and stop making complaints and wasting time about nothing.

kuohu

Lizardking - I'd recommend popping over to the Debt Free Wannabe section of this forum for lots of tips and advice on budgeting, cutting back, and hence reducing debt.

Also, it may be worth looking into balance transferring the debt onto a different CC which has a promotional 0% period. You'd still be in the same boat as you are now (in terms of not being able to use the card whilst you pay off the debt) but at least it would help pay off the debt quicker. Martin has articles on doing this.

In the cold light of day, I think if RBS had done this to me then I'd eventually realise that they'd done me a favour, by giving me a nudge to sort out the problem rather than allowing me to create more debt.

Good luck.

nicnevitt

Another point that needs to be made is that you say you were having difficulty for a while, this indicates risk. If RBS were to give you the ability to spend on a credit card after knowing that you were struggling then I'm pretty sure that if you struggled to repay the increased amount of debt you would probably blame them for giving you the facility in the first place.