Minimum Payment Hike

13

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546
    Name Dropper Photogenic First Anniversary First Post
    Forumite
    So with customers paying less interest per year......where will they earn all there profits

    Less administration of deliquent accounts. There'll be more focus on quality of customer and less on quantity.
  • robin58
    robin58 Posts: 2,802 Forumite
    Nasqueron wrote: »
    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

    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
    boo_star Posts: 3,202
    First Post First Anniversary
    Forumite
    robin58 wrote: »
    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.
    RBS customers won't, it's not a Lloyds Banking Group company.
  • Nasqueron
    Nasqueron Posts: 8,631
    Name Dropper First Post First Anniversary Combo Breaker
    Forumite
    robin58 wrote: »
    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.

    Yes that's why I mentioned it, standard corporate terms with individual branded letterheads
  • dazzaofdagenham
    dazzaofdagenham Posts: 1,510
    Name Dropper First Post First Anniversary
    Forumite
    Thrugelmir wrote: »
    Less administration of deliquent accounts. There'll be more focus on quality of customer and less on quantity.

    Can’t wait to see how that will work
  • Ergates
    Ergates Posts: 2,108
    First Anniversary First Post Name Dropper
    Forumite
    Thrugelmir wrote: »
    Less administration of deliquent accounts. There'll be more focus on quality of customer and less on quantity.

    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
    chattychappy Posts: 7,302 Forumite
    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
    MABLE Posts: 4,077
    First Anniversary First Post
    Forumite
    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
    Ergates Posts: 2,108
    First Anniversary First Post Name Dropper
    Forumite
    MABLE wrote: »
    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.

    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
    Nasqueron Posts: 8,631
    Name Dropper First Post First Anniversary Combo Breaker
    Forumite
    MABLE wrote: »
    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.

    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
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards