Virgin increasing credit card interest rate by over 5%

BoGoF

Superhoopza said:

Hoenir said:

Superhoopza said:

Hoenir said:

Superhoopza said:

Yep Santander increased 5% in January. Seems a very poor practice to do this to existing customers. If they wanted to increase the rate to new customers who have the choice then fair enough but not to existing customers who may have accepted that rate because it works with their budget or whatever the reason for taking credit was.

Fixed rate products are available. Borrow at a floating rate you have to take the rough with the smooth. Consumers have no grounds to complain. 

So they can do what they want and that's fine because it's 'in their terms'. Hope you don't encounter any unforeseen issues and when you need help people just quote terms and conditions and hindsight to you whilst you struggle.

You do understand how finance works. If cost of funding rises so will lending rates.  Credit cards are generally expensive as the rate of defaults is high. People have a choice as to whether borrow money or not. There has to be a degree of personal responsibility taken.  Not the constant blaming of someone else that so often heard these days. 

More than likely I understand it better than you so thanks for the attempt at patronising me. It doesn't mean giving creditors a blank cheque to change rates that people have signed up to whenever and by however they much an acceptable practice. If they didn't have people to lend to, they wouldn't have a business (not in that sector of their company anyway) so its a two way street. 

You signed up to fixed rate did you?

Superhoopza

BoGoF said:

Superhoopza said:

Hoenir said:

Superhoopza said:

Hoenir said:

Superhoopza said:

Yep Santander increased 5% in January. Seems a very poor practice to do this to existing customers. If they wanted to increase the rate to new customers who have the choice then fair enough but not to existing customers who may have accepted that rate because it works with their budget or whatever the reason for taking credit was.

Fixed rate products are available. Borrow at a floating rate you have to take the rough with the smooth. Consumers have no grounds to complain. 

So they can do what they want and that's fine because it's 'in their terms'. Hope you don't encounter any unforeseen issues and when you need help people just quote terms and conditions and hindsight to you whilst you struggle.

You do understand how finance works. If cost of funding rises so will lending rates.  Credit cards are generally expensive as the rate of defaults is high. People have a choice as to whether borrow money or not. There has to be a degree of personal responsibility taken.  Not the constant blaming of someone else that so often heard these days. 

More than likely I understand it better than you so thanks for the attempt at patronising me. It doesn't mean giving creditors a blank cheque to change rates that people have signed up to whenever and by however they much an acceptable practice. If they didn't have people to lend to, they wouldn't have a business (not in that sector of their company anyway) so its a two way street. 

You signed up to fixed rate did you?

So to everyone that signed up to a variable rate, would that be your response if a creditor put up the rates to 200%, 300% etc? 

Hoenir

Superhoopza said:

Hoenir said:

Superhoopza said:

Hoenir said:

Superhoopza said:

Yep Santander increased 5% in January. Seems a very poor practice to do this to existing customers. If they wanted to increase the rate to new customers who have the choice then fair enough but not to existing customers who may have accepted that rate because it works with their budget or whatever the reason for taking credit was.

Fixed rate products are available. Borrow at a floating rate you have to take the rough with the smooth. Consumers have no grounds to complain. 

So they can do what they want and that's fine because it's 'in their terms'. Hope you don't encounter any unforeseen issues and when you need help people just quote terms and conditions and hindsight to you whilst you struggle.

You do understand how finance works. If cost of funding rises so will lending rates.  Credit cards are generally expensive as the rate of defaults is high. People have a choice as to whether borrow money or not. There has to be a degree of personal responsibility taken.  Not the constant blaming of someone else that so often heard these days. 

More than likely I understand it better than you so thanks for the attempt at patronising me. It doesn't mean giving creditors a blank cheque to change rates that people have signed up to whenever and by however they much an acceptable practice. If they didn't have people to lend to, they wouldn't have a business (not in that sector of their company anyway) so its a two way street. 

No attempt to patronise I can assure you. I understand your frustrations. Doesn't alter the business case either though. Days of plentifull cheap money to party with are well and truly over. Be no harm if consumer credit borrowing levels were to drop overall. The buy now pay later culture does nothing but create more problems. 

Superhoopza

Hoenir said:

Superhoopza said:

Hoenir said:

Superhoopza said:

Hoenir said:

Superhoopza said:

Yep Santander increased 5% in January. Seems a very poor practice to do this to existing customers. If they wanted to increase the rate to new customers who have the choice then fair enough but not to existing customers who may have accepted that rate because it works with their budget or whatever the reason for taking credit was.

Fixed rate products are available. Borrow at a floating rate you have to take the rough with the smooth. Consumers have no grounds to complain. 

So they can do what they want and that's fine because it's 'in their terms'. Hope you don't encounter any unforeseen issues and when you need help people just quote terms and conditions and hindsight to you whilst you struggle.

You do understand how finance works. If cost of funding rises so will lending rates.  Credit cards are generally expensive as the rate of defaults is high. People have a choice as to whether borrow money or not. There has to be a degree of personal responsibility taken.  Not the constant blaming of someone else that so often heard these days. 

More than likely I understand it better than you so thanks for the attempt at patronising me. It doesn't mean giving creditors a blank cheque to change rates that people have signed up to whenever and by however they much an acceptable practice. If they didn't have people to lend to, they wouldn't have a business (not in that sector of their company anyway) so its a two way street. 

No attempt to patronise I can assure you. I understand your frustrations. Doesn't alter the business case either though. Days of plentifull cheap money to party with are well and truly over. Be no harm if consumer credit borrowing levels were to drop overall. The buy now pay later culture does nothing but create more problems. 

Agree with all of this. Good debate.