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  • FIRST POST
    • mmm123
    • By mmm123 8th Jul 18, 6:01 PM
    • 2Posts
    • 0Thanks
    mmm123
    Minimum Payment Hike
    • #1
    • 8th Jul 18, 6:01 PM
    Minimum Payment Hike 8th Jul 18 at 6:01 PM
    I have had Lloyds credit card for a long time and have never missed a payment but they have just written to me and said that my minimum payment calculation is going up. What would have been a £400 minimum repayment will now be £620! Are they allowed to do that! Can they just change the rules so easily - it is going to be hard for me to find this extra money every month
Page 2
    • Ergates
    • By Ergates 10th Jul 18, 4:49 PM
    • 34 Posts
    • 70 Thanks
    Ergates
    The gist is very much of communication, offering help, asking the borrower to increase payments over time.
    Pretty much this. Monitor your customers, looking for those falling into the definition of persistent debt. If/When you find them, contact them, offer help, ask them to increase their payments and point them to some independent advisory bodies. The "stick" if one is needed is that if you don't change your repayments then they may stop your card (at the 36 month mark if you're still in PD, or sooner).

    It's not looking for people only making the minimum payments, it's checking that over the previous 18 months, do the sum total of fees, charges and interest make up more than 50% of the sum total of payments (over the same period). The other criteria is that your balance has to have been above £200 for the entire period too.


    So with customers paying less interest per year......where will they earn all there profits
    That's not really the FCA's problem...
    • Wheres My Cashback
    • By Wheres My Cashback 10th Jul 18, 10:13 PM
    • 3,012 Posts
    • 37,418 Thanks
    Wheres My Cashback
    I have had Lloyds credit card for a long time and have never missed a payment but they have just written to me and said that my minimum payment calculation is going up. What would have been a £400 minimum repayment will now be £620! Are they allowed to do that! Can they just change the rules so easily - it is going to be hard for me to find this extra money every month
    Originally posted by mmm123
    Truly unbelievable !!
    • Thrugelmir
    • By Thrugelmir 10th Jul 18, 11:18 PM
    • 59,247 Posts
    • 52,619 Thanks
    Thrugelmir
    So with customers paying less interest per year......where will they earn all there profits
    Originally posted by dazzaofdagenham
    Less administration of deliquent accounts. There'll be more focus on quality of customer and less on quantity.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • robin58
    • By robin58 11th Jul 18, 1:04 AM
    • 2,491 Posts
    • 2,887 Thanks
    robin58
    My CC is with the Halifax and I received a letter yesterday saying they were changing the Ts & Cs to allow them to recommend you increase the minimum if they feel you aren't paying it off / paying more in interest than clearing debt. I think I will probably close it as the "loyalty bonus" which used to be 0.25% cashback I now see they round down to the nearest £5
    Originally posted by Nasqueron
    And guess who owns Halifax, Lloyds.

    Plus no doubt persons with MNBA, HBOS and RBS credit cards will be getting the same new terms and conditions soon as they are also Lloyds brands.
    The more I live, the more I learn.
    The more I learn, the more I grow.
    The more I grow, the more I see.
    The more I see, the more I know.
    The more I know, the more I see,
    How little I know.!!
    • boo_star
    • By boo_star 11th Jul 18, 1:50 AM
    • 1,571 Posts
    • 914 Thanks
    boo_star
    And guess who owns Halifax, Lloyds.

    Plus no doubt persons with MNBA, HBOS and RBS credit cards will be getting the same new terms and conditions soon as they are also Lloyds brands.
    Originally posted by robin58
    RBS customers won't, it's not a Lloyds Banking Group company.
    • Nasqueron
    • By Nasqueron 11th Jul 18, 9:40 AM
    • 4,949 Posts
    • 3,002 Thanks
    Nasqueron
    And guess who owns Halifax, Lloyds.

    Plus no doubt persons with MNBA, HBOS and RBS credit cards will be getting the same new terms and conditions soon as they are also Lloyds brands.
    Originally posted by robin58
    Yes that's why I mentioned it, standard corporate terms with individual branded letterheads
    • dazzaofdagenham
    • By dazzaofdagenham 11th Jul 18, 10:10 AM
    • 1,178 Posts
    • 389 Thanks
    dazzaofdagenham
    Less administration of deliquent accounts. There'll be more focus on quality of customer and less on quantity.
    Originally posted by Thrugelmir
    Canít wait to see how that will work
    • Ergates
    • By Ergates 11th Jul 18, 8:55 PM
    • 34 Posts
    • 70 Thanks
    Ergates
    Less administration of deliquent accounts. There'll be more focus on quality of customer and less on quantity.
    Originally posted by Thrugelmir
    Not really - the customer this is aimed at aren't those in arrears, it's those who are making only the minimum payment (or there abouts) every month.

    This is going to cost the banks millions.

    The only benefit to the banks in doing all this is avoiding large fines from the FCA.
    • chattychappy
    • By chattychappy 12th Jul 18, 8:34 AM
    • 6,839 Posts
    • 3,715 Thanks
    chattychappy
    Plus a further extension to the "money saving" culture....

    Q: I've only paid minimums for the last year or so and have had letters from from the greedy bankers saying I should pay more. I've also inherited a large sum of money, should I pay back what I owe?

    A: No! Paying more could cost you more! Just carry on as you are. Soon the bank will have to offer you forbearance and you can get some of it written off. You will lose this entitlement if you increase your payments.

    Or claims companies examining the timing and wording of letters sent to minimum payers to see if they were strictly compliant.
    • MABLE
    • By MABLE 12th Jul 18, 1:30 PM
    • 3,569 Posts
    • 1,875 Thanks
    MABLE
    I took out a promotional offer with my Lloyds Avios cc. I only paid the min because the amount owing was on a promotion. However I got fed up with letters from them telling me if I paid more how much quicker the balance would be cleared. In the end I complained and told them to stop bothering me and the complaints dept said just put the letters in the rubbish.

    BTW the promo rate was for 18 months but they never raised the min payment.
    • Ergates
    • By Ergates 12th Jul 18, 1:35 PM
    • 34 Posts
    • 70 Thanks
    Ergates
    I took out a promotional offer with my Lloyds Avios cc. I only paid the min because the amount owing was on a promotion. However I got fed up with letters from them telling me if I paid more how much quicker the balance would be cleared. In the end I complained and told them to stop bothering me and the complaints dept said just put the letters in the rubbish.

    BTW the promo rate was for 18 months but they never raised the min payment.
    Originally posted by MABLE
    The banks *have* to tell you this - it's a regulatory requirement.

    Upping the payment (and thus clearing the balance quicker) helps *you*, not them. It costs them money - banks would actually prefer you to keep just paying the minimum balance as they make more money in interest payments that way.
    • Nasqueron
    • By Nasqueron 12th Jul 18, 1:50 PM
    • 4,949 Posts
    • 3,002 Thanks
    Nasqueron
    I took out a promotional offer with my Lloyds Avios cc. I only paid the min because the amount owing was on a promotion. However I got fed up with letters from them telling me if I paid more how much quicker the balance would be cleared. In the end I complained and told them to stop bothering me and the complaints dept said just put the letters in the rubbish.

    BTW the promo rate was for 18 months but they never raised the min payment.
    Originally posted by MABLE
    Maybe you just need to ask for paperless. The statements I get from my BT card are online only and although they mention the minimum payment as it's a 0% thing it's no big issue to ignore them, just check to make sure no spending went through
    • foxy-stoat
    • By foxy-stoat 12th Jul 18, 3:20 PM
    • 2,205 Posts
    • 1,195 Thanks
    foxy-stoat
    OP's break in between their '2' posts - 11 years! They never came back to their last thread either. I suspect you're all wasting your time.
    Originally posted by bigisi
    I would agree - thread should be locked now and eagerly await the return of the OP in 2025.
    • MABLE
    • By MABLE 12th Jul 18, 4:23 PM
    • 3,569 Posts
    • 1,875 Thanks
    MABLE
    Maybe you just need to ask for paperless. The statements I get from my BT card are online only and although they mention the minimum payment as it's a 0% thing it's no big issue to ignore them, just check to make sure no spending went through
    Originally posted by Nasqueron
    I only have paperless statements but that made no difference.
    • Ergates
    • By Ergates 12th Jul 18, 6:05 PM
    • 34 Posts
    • 70 Thanks
    Ergates
    I only have paperless statements but that made no difference.
    Originally posted by MABLE
    It won't - going paperless relates to statements and regular "normal" communications.

    These other type of communications - the ones mandated by the regulators - will continue to be by paper.
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