Whats going on ? Unexpected change to credit card terms and conditions !

washtenaw

Received 2 letters from Lloyds today saying they're changing the terms and conditions on both of my credit cards with them, the most significant change being that the fee they are charging for Balance Transfers, Money Transfer and Cash Advances, is being increased from the current 3% to 5%.

The other change was something about 'persistent debt' i.e. : 'When you have paid more in interest, fees and charges than from your credit card's balance for a long time. this is known as persistent debt". And then they go on to outline what changes would happen with my account in such a scenario.

Has anyone else with Lloyds cards also been informed of such changes to their terms and conditions ? I'm trying to determine if this is something that is happening to all of their customers at the moment or just me.

A bit of background: I recently cleared the full balance on one of my Lloyds cards and subsequently received a very good balance transfer option on that card. I decided to take full advantage of this last week and use up 95% of the limit (I made sure I didn't go over) and transfer balances from 3 different credit cards to that Lloyds card. This was then flagged up as a possible fraudulent transaction and my online banking was frozen and I was instructed to contact the fraud team. I did so, and everything was cleared up, my online banking was unfrozen and I was told to attempt the balance transfers again. However, upon doing so, they still weren't going through, and I contacted the credit card department who attempted to make the balance transfers for me over the phone. This still proved unsuccessful and eventually I was told that due to recent changes in my credit file from Experian and/or TransUnion, the balance transfer offers had been rescinded and that I would no longer be able to take advantage of them even though they were still being displayed on my online banking.

I was then instructed to directly contact Experian or TransUnion to find out what had changed on my credit file. I had in fact taken out 2 new credit cards in the past few months and in order to take full advantage of their promotional offers, I had used up to 95% of their available credit limits. My overall credit limit has also increased considerably and also my overall credit card debt (although my overall debt is still below 50% of my overall limit). So I can perfectly understand that all this recent activity on my credit file has likely made a significant negative dent on my 'creditworthiness'.

I'm just a bit concerned that being being flagged up for a possible fraudulent transaction is ultimately what has caused Lloyds to change my terms and conditions.

There is indeed a lot going on though, and maybe this is all just a big coincidence, I really can't say, and I doubt that anyone at Lloyds would admit to this if it wasn't.

So if every Lloyds cardholder is getting the exact same letters, then this has nothing to do with me specifically, but I'm quite concerned that this has happened to me because Lloyds now sees me as more of a risky lender, either because I was flagged up for a possible fraudulent transaction and/or because of a negative change in my credit score.

Any thoughts/advice ? Should I contact Lloyds and ask for an explanation or perhaps even make a complaint ?

[Deleted User]

washtenaw wrote: »

Has anyone else with Lloyds cards also been informed of such changes to their terms and conditions ? I'm trying to determine if this is something that is happening to all of their customers at the moment or just me.

No one manages cards at that level. This is a wholescale change across the portfolio and has nothing to do with your risk levels.

There's no point in making a complaint. If you don't agree with the terms, simply close down the account.

BoGoF

Received the same letter 4 times - 3 for my MBNA cards and one for Bank of Scotland. All went in the bin.

Bearing in mind they are allowed to vary the terms and conditions by giving the requisite notice what exactly are you complaining about.

virgo17

@washtenaw

Don't panic. We have had the same letters for our Lloyds and Halifax cards. It's generic.

LuSiVe

I've received the letter from Lloyds. To be honest I thought they'd already reduced my card limit to £75 and then cancelled it.....

washtenaw

Thanks for all the replies.

I still think its a really, really big coincidence that this has happened so soon after I was flagged up for a fraudulent transaction and had all those issues with being refused balance transfers.

But if that's what it is . . . then that's what it is !!!

I suppose that all of this (my recent issues as well as the change in terms and conditions for all customers) is just symptomatic of Lloyds Group becoming a bit jittery in general in terms of lending, could even have something to do with Brexit looming as well.

[Deleted User]

washtenaw wrote: »

I still think its a really, really big coincidence that this has happened so soon after I was flagged up for a fraudulent transaction and had all those issues with being refused balance transfers.

You can always find coincidences if you look for them.

I had tuna mayonnaise yesterday and today, just a few hours later, I got a puncture.

I won't be eating tuna mayonnaise again any time soon, I can tell you.

washtenaw

BoGoF wrote: »

Received the same letter 4 times - 3 for my MBNA cards and one for Bank of Scotland. All went in the bin.

Bearing in mind they are allowed to vary the terms and conditions by giving the requisite notice what exactly are you complaining about.

virgo17 wrote: »

@washtenaw

Don't panic. We have had the same letters for our Lloyds and Halifax cards. It's generic.

LuSiVe wrote: »

I've received the letter from Lloyds. To be honest I thought they'd already reduced my card limit to £75 and then cancelled it.....

So in any of your letters, did they also specifically state that the fees for Balance Transfers etc would be increasing from 3% to 5 % ?

I just want to check that we've all received the same information.

washtenaw

Deleted_User wrote: »

You can always find coincidences if you look for them.

I had tuna mayonnaise yesterday and today, just a few hours later, I got a puncture.

I won't be eating tuna mayonnaise again any time soon, I can tell you.

Very good advice ha ha :-)

Well I'm glad I asked on here first, otherwise I might have called up Lloyds and launched into some frantic tirade about how they weren't appreciating me as a customer which would have gotten me absolutely nowhere and also made me sound like a complete and total idiot :doh:

Ben8282

Have also received this letter.
The most significant change was the increase in fees from 3% to 5% for existing customer balance and money transfers. Not good at all.
Did notice that they are removing the fee for exceeding the credit limit. Found that one a bit odd.
As pay in full every month couldn't be bothered to read about the persistant debt.
To OP. A booklet accompanies the letter entitled 'Credit card terms and conditions part B'. They would not have produced this booklet just for you. Everybody got the same letter.

It looks to me that Lloyds have recently become a second rate credit card provider. They have hidden details of their cards behind an eligibility checker so that nobody can see what products are currently available, even existing customers, without using the eligabilityy checker first which is a practice which is becoming more and more common and I really don't like. Since they were forced to stop issuing the duo cards they no longer offer any sort of rewards product (except the Trustcard whose holders are apparently getting a nice cashback offer in compensation for what has happened). Now with these changes they are charging an even higher fee than Virgin whose card I have and whose fees on BT's and MT's I thought to be high in comparison with others.

SnowTiger

washtenaw wrote: »

I still think its a really, really big coincidence that this has happened so soon after I was flagged up for a fraudulent transaction and had all those issues with being refused balance transfers.

I received a similar letter this morning.

I doubt problems you have had with a 'fraudulent transaction' and balance transfers is the reason Lloyds plan to update the T&Cs of my account.