Sneaky Bank of Scotland credit card interest rate recalculation

Thrugelmir

moatmeister wrote: »

I am sorry for wasting all your time it is obviously only me who thinks the banking system is weighted in its own favour I must be misguided.

Why are you disadvantaged by this?

moatmeister

I am not disadvantaged but plenty of other people who are trapped with no options will be.

boo_star

moatmeister wrote: »

I am not disadvantaged but plenty of other people who are trapped with no options will be.

Are they?

Whilst you can't reject a rate increase after they link it to BoE rates you can presumably refuse to accept the linked rate condition and still pay at a fixed rate?

ERICS_MUM

Perhaps I'm misunderstanding what's going on here. If BOS are saying you will be charged Bank Base Rate plus your Personal BOS rate, the total interest rate will be completely transparent to you - whenever the Base Rate changes you will know immediately what your new rate will be, without having to wait for them to let you know.

I don't think Sainburys are as transparent about how they set the prices for baked beans, toilet rolls etc.(example only, there other supermarkets.....).

boo_star

ERICS_MUM wrote: »

Perhaps I'm misunderstanding what's going on here. If BOS are saying you will be charged Bank Base Rate plus your Personal BOS rate, the total interest rate will be completely transparent to you - whenever the Base Rate changes you will know immediately what your new rate will be, without having to wait for them to let you know.

I don't think Sainburys are as transparent about how they set the prices for baked beans, toilet rolls etc.(example only, there other supermarkets.....).

The issue is that when you're on X rate, if you refuse to accept it the balance is paid off at X rate.

If they change it to X rate plus BoE base rate then according to law, you can't refuse the rate hike and just pay it off.

nickmack

ERICS_MUM wrote: »

Perhaps I'm misunderstanding what's going on here. If BOS are saying you will be charged Bank Base Rate plus your Personal BOS rate, the total interest rate will be completely transparent to you - whenever the Base Rate changes you will know immediately what your new rate will be, without having to wait for them to let you know.

They can also increase your 'Personal Interest Rate' in line with T&Cs, so would need to write to you 60 days in advance in this instance, although that would at least allow you to close and pay off at the existing rate.


The 'new way to calculate' taken up by Halifax/BoS and Lloyds is more about perception. Don't kid yourself it's anything to do with making it easier for the customer.


Firstly, the bank can point to the BoE and blame them for the (inevitable) increases in your credit card rate, so it doesn't look them squeezing you. Secondly, as mentioned by boo_star, you cannot reject the increased rate, as it's linked.