Are banks legally obliged to stick to their interest free period offers?

thaddeus_2

Sorry if this has been asked before - I did try a search!

When banks offer a credit card with an interest free period (e.g. 12 months) are they legally obliged to keep the credit card interest free for that period? Or can they decide at any point to introduce an interest charge?

The reason I ask is that I signed up to Halifax's 24 month interest free credit card (via this website - would be great if anyone could verify the offer!) in November 2014. This month - 18 months in - they have moved to an interest rate of ~18%.

Having checked the statement last month it did state - on page 3 of 4 - that they were going to do so and I hold my hands up for not noticing that. Nevertheless though, should Halifax have been able to do this?

Many thanks for any help/advice

[Deleted User]

No. Unless you breached the terms.

What exactly did the message say?

thaddeus_2

Thanks for the replies.

The message about the interest rate change was a fairly generic one: "Retail promotion expiry message: From 08 Jul 2016 your rate will be 18.95% p.a."

Frustratingly I can't find anything on any document - from the agreement through any of the monthly statements - which states how long the interest free period was. All I have is my own record that it was 24 months (and that I've never signed up to a card with less).

YorkshireBoy

Are you sure it was 24 months? A quick check of the archived MSE weekly emails from November 2014 shows Halifax had a market leading 20 month 0% offer. This would broadly tie in with a July 2016 expiry date.

[Deleted User]

That message would suggest is was a shorter term than you thought. Contact them for clarification.

YorkshireBoy

Your card came stuck to a set of T&Cs, otherwise known as a credit agreement...which you filed away safely for future reference.

The 0% promotional rate period is given there in section 4 "interest rates".

thaddeus_2

I think you might have solved the mystery YorkshireBoy. My stupidity.

I'll just have to suck this one up, pay the interest for July and improve my filing system, memory, reading etc.

Thanks again for the replies.

jonesMUFCforever

Not many posters come back and admit they have made a mistake - well done for that.
Going forward it is probably easier to get an even longer interest free card today than in 2014/2015 so if your credit files are good apply away.

hunnycat

i got a barclays 37 month interest free balance transfer card recently and got charged interest as had defaulted due to being new to contactless i had not realised it wasnt instant! quick call to them and they have reinstated my promotion.

Chrysalis

note the offers are usually "UPTO XX months"

My guess when you got the card you was only offered a shorter period. Not everyone who gets approved gets the best terms, its similar to the APR been changed for different customers also depending on credit risk.