Credit Card Account Closed and Increasing Interest Rate

loveandlight

Hi guys,

I have a credit card account with the Co-Op and owe about £1100.00. They closed down my account two years ago as they considered I was high risk. I have always paid on time and have never defaulted on anything and thought fine as I hadn't used it for a while anyway. Since then they keep raising my interest rate on that account and now I am paying twice as much every month.

I thought when a credit card account gets closed down the rate stays the same until it is repaid? Is that not the case and they can charge whatever they want still?

[Deleted User]

It the account is genuinely closed, then they should not be increasing the rate and it should just be in paydown mode. The only exception would be if any promotional rates were ending while the account was closed.

Contact them.

PeacefulWaters

Why didn't you contact them the first time they increased your rate?

muhandis

- The interest rate should stay at the level it was at the time of closure unless it was a promotional rate.

- Make a call and ask them why they've increased the rate. If you don't get a satisfactory answer, make a formal complaint [EMAIL="complaints@co-operativebank.co.uk"]complaints@co-operativebank.co.uk[/EMAIL] or by post. From experience most banks take complaints seriously and will get back to you quickly with a response.

loveandlight wrote: »

Hi guys,

I have a credit card account with the Co-Op and owe about £1100.00. They closed down my account two years ago as they considered I was high risk. I have always paid on time and have never defaulted on anything and thought fine as I hadn't used it for a while anyway. Since then they keep raising my interest rate on that account and now I am paying twice as much every month.

I thought when a credit card account gets closed down the rate stays the same until it is repaid? Is that not the case and they can charge whatever they want still?

loveandlight

No its not a promotional rate. I will write to them. Thanks.