Reply to: Creditcard balance xfer rates

[pmeswani]

I've had a small balance on a Capital One creditcard for some time now, I got it a few years ago at a promotional rate of 3.9% for the life of the balance.. being a low rate I've just been paying the minimum monthly payment.

Gets my statement through today and noticed the interest amount has gone up almost 10x from last month.

Rang them up and was told that because the cost of lending has increased, so has my interest rate. I asked how they could do this since the money on the card was still at the 3.9% life of balance rate, and just kept getting the same reply "the cost of lending has gone up".

Rang financial ombudsman and they said I can put in a complaint, but chances are there will be something in the T&Cs allowing them to do this.

Anyone else been stung? I've also heard there's a list of other card providers doing this as of this month?

I applied for the 8.9% rate card a when it came out. I got turned down and was offered a 40% rate card instead.... to which I turned down straight away. I'm glad that I didn't get it based on your comment. Managed to get a Credit Card from HSBC on a 14 month 0% promotional rate on my balance transfer.

[Gravy Train]

What most people don't realise about cards is the card companies can pretty much rewrite the contract whenever they want (all they have to do is notify you in advance), change interest rates, increase caps, lower caps or call in entire amount outstanding without explanation

In that case why don't they introduce a 1% offer +3% transfer fee for life for balance transfers and then exchange it for a 15% APR once everyone has jumped on board?

[Cyberman]

I do the pay for everything on a cashback credit card and then settle the bill each month too.

The one thing I don't do is pay interest on anything. Interest is dead money for fools.

aren't we paying interest on the National Debt that Broon has doubled....... !!

[Not So Wise]

What most people don't realise about cards is the card companies can pretty much rewrite the contract whenever they want (all they have to do is notify you in advance), change interest rates, increase caps, lower caps or call in entire amount outstanding without explanation

[BrianSnail]

They should have sent you a letter prior to any change to the interest rate. Did they, and did you read it? Otherwise get legal.

I meant, WHS!

[BrianSnail]

Shirley there's some legal mumbo jumbo that says they have to give you written notice of a change in interest rate?!?

[ace00]

.........
Rang financial ombudsman and they said I can put in a complaint, but chances are there will be something in the T&Cs allowing them to do this.
..........

They should have sent you a letter prior to any change to the interest rate. Did they, and did you read it? Otherwise get legal.

[DimPrawn]

I do the pay for everything on a cashback credit card and then settle the bill each month too.

The one thing I don't do is pay interest on anything. Interest is dead money for fools.

[jmo21]

I use my credit cards as much as possible, earning cashback, and keeping money in my bank account as long as possible which offsets my mortgage.

Difficult to say how much I save doing this.

Always pay off in full every month, except where I have 0% deals on the go.

[minestrone]

They probably assumed that most folk would not even notice.

I ain't used my credit card in over 5 years, don't even know what the rate is.

[Zippy]

The money we're talking here is not an issue, the balance is <£2000 and the interest went from £0.58p/month to £10/month... it's the principle of the matter which is important.

I understand - but the credit card companies don't have principles so they won't. What they will understand is lost business and bad publicity.

And thanks for the warning - I'll certainly be keeping an eye on my statements.

[Zippy]

Apart from the 3% balance transfer fee.

Which is no more than he was paying Capital before the rates shot up

[chris79]

The money we're talking here is not an issue, the balance is <£2000 and the interest went from £0.58p/month to £10/month... it's the principle of the matter which is important.

[DimPrawn]

Apart from the 3% balance transfer fee.

[Zippy]

Sneaky, evil sods.

Get on to a comparison web site, get yourself a new 0% card (Virgin do one) and pay the balance within 13 months and you won't lose out.