Rate Jacking Sucesses/failures

A question about : Rate Jacking Sucesses/failures

I've been an Egg customer since I was at Uni and they'd always been pretty good. Just lately though (I believe they'd been taken over by Citibank) their service has gone completely downhill.

I had a number of Egg products (Home Insurance, Car Insurance, Egg Card, Egg Savings, Egg Loan).

Received an email back in March explaining that my rate was set to go from 16.9% to 22.9%. I read the Ts and Cs and saw that I could cancel my agreement (hence stopping the card) but still keep the existing rate. I guess Egg learnt that simply cancelling cards was bad press. So I cancelled it which meant I could pay back at the existing rate. I also cancelled all other products that I held with Egg when they came up for renewal, and will now refuse to take out any product with them again.

Best answers:

• I've been an Egg customer since I was at Uni and they'd always been pretty good. Just lately though (I believe they'd been taken over by Citibank) their service has gone completely downhill.
  I had a number of Egg products (Home Insurance, Car Insurance, Egg Card, Egg Savings, Egg Loan).
  Received an email back in March explaining that my rate was set to go from 16.9% to 22.9%. I read the Ts and Cs and saw that I could cancel my agreement (hence stopping the card) but still keep the existing rate. I guess Egg learnt that simply cancelling cards was bad press. So I cancelled it which meant I could pay back at the existing rate. I also cancelled all other products that I held with Egg when they came up for renewal, and will now refuse to take out any product with them again.
• two minor hike for me in the last 2 months Citi - 17.9 to 19.9 and Tesco 16.4 to 17.9
  Both with the option to keep debt at existing rate and close card. Both zero balance so leaving be.
• HBOS (Bank of Scotland)
• Yes
• Just a phone call!
• I had a letter this morning from HBOS informing me that my APR is jumping from 17.9% to 25.5%. I phoned them immediately and asked for my rate to be reduced. They reduced it back to 17.9% and I was off the phone in 4 minutes. Very pleased
• Egg, SMILE, MBNA, MINT have all done it.
  Halifax are now trying to reduce overdraft limit despiet the fact that I have maintained the saem limit for 10 years with no problems.
  I'm now going to start using DPA Section 12 (rights related to automated decision making) in complaint letters. What they forget is that would mean both the FSA and ICO handling complaints.
• Who Rate Jacked you: Lloyds TSB (Airmiles card)
  Did you manage to get the rate reduced ?: Nope
  I'd had the card for less than a year when I noticed in teeny tiny writing on my statement that my interest was going up. They'd put it down as the monthly rate, so it looked like a tiny increase, but after some swift sums I saw that they were proposing to raise the rate from 15% to 21%.
  I'd been making more-than minimum payments on the card, use it infrequently and had less than Ј1000 on it.
  I phoned and asked for a revision of the rise, spoke to a lovely chap who was immensely sympathetic and said he'd pass on my complaint.
  I got a letter about a month later saying they'd considered my complaint, but looking at the new rate they felt that it was very competitive and in light of this they weren't going to do anything about it.
• Capital One
• 6% for life of balance transfer
• since 2007 approx
• Increase to 18.9%

I rang them after receiving their letter. Spoke to chap in India who was obviously reading from a script....credit crunch... blah blah blah.
Said I was very unhappy with what they were proposing since I had signed up to life of balance deal.
Gave me option of taking my debt elsewhere or cutting up card (done in 2007) and continue payments until Ј0. Snapped his hand off at second option.
More an more difficult to get deals on credit cards now so have reached saturation with the various tarting we been doing!

• Who Rate Jacked you:
  MBNA - I actually posted a thread for advice in credit cards on Monday when we realised (2.2%pm to 2.529% - from Ј120 to Ј140 per month!)
  Did you manage to get the rate reduced ????
  Ongoing - spoke to a very unhelpful call handler with MBNA yesterday that just said we knew about it - we've had no correspondence and they have also put a stop on the account, so should not be increasing the interest on top.
  Did you get it back after a letter or did you go to the Financial Ombudsman: ????
  We wrote a complaint letter to MBNA yesterday which asked for copies of all our information including telephone transcripts under Data Protection and Freedom of Information Acts. This letter will also be sent to the Ombudsman.
  And then write your brief reclaim tale
  We realised this week that the interest rate has been increased, we looked back through statements and noticed that the account was also withdrawn in March 09, we were not aware of this, as we haven't used the card since last year.....
• Lloyds TSB did this to me with an Asset Advance card which had been on 9.9% for many years (at least 5). I tend to use credit cards when I know I'll have a lump sum coming in but want to spend early so I may not pay the balance off for a few months. I managed to get a Barclaycard on their 6.8% deal so I've now tranferred the Lloyds balance to that. I've still kept the Lloyds account open but am now wondering whether to close it completely.
  Cheers
  James.
• I have just been rate-jacked. After being a good customer with a Ј5K limit, I recently consolidated my debts for an 8% pa loan, to resist temptation I asked Virgin to lower my limit to Ј500. I currently owe about Ј260 and always pay Ј10 above minimum payment.
  Got a letter rate-jacking up to 29%, I have the option of calling them to keep my rate at current level, but my card will be frozen with no more spending.
  I called them and said I did not want to leave as was very happy, they refused to explain why I was rate jacked and would not budge.
  I have a Virgin holiday booked which has to be paid on the card, so she offered to increase my limit to Ј800 to cover this, then I received a text refusing this, so I now have a failed application on my credit history!
• Barclaycard platinum old rate 16.9 they told me they are increasing to 21.9 when i asked why they said it was a decision by barclaycard management and nothing i could do about it.
  current balance Ј2360 credit limit Ј2400 I hae cut up card asked them to close my account and pay off at the old rate.
  I then decided to speak to them again as will forsee some payment problems they put me thru to customer loyalty and they said that if i was having financial problems they can put a payment plan into place for 6 months to help.
  need to pay Ј35.50 per month and interest rate reduced to 0.5 per cent apr this will save a few quid each month and pay a little more of the debt( IS THIS A GOOD IDEA)?
  they said this would reflect on my credit file not too bothered as I have enough debt to clear anyway
  my question is will my other credit card company then look at my file and hike my rate up?
  other card id halifax classic credit limit Ј6050 BALANCE around 6k
  have a promotional balance 4.9 % for lifeon a balance transfer and standard rate of 11.9%( i rang them earlier this year to see if they could lower from 19.9 which they did.)I also pay by DD for this card( this card has also been cut up)
  thanks all
  mak
• This month Marbles put my card up from 20% to 34.9%! out of my minium payment only Ј20 comes off the balance of around Ј8000 and MBNA have sent an opt out letter to keep me at 20.9% and cancel any payments out of the card or continue at 25.9%. I have not missed a payment on either card ever and this is costing me a fortune - how can they get away with these rates?
• HSBC - 15.9% to 20.9% (my wife's Gold Card)
  My wife is past retirement age when HSBC 'offered her' a gold card back in 2004. They had since increased the rate then reduced it but would not back date it. Now they've done it again and get ready for this 'You do not have enough products with us' as an answer (verbally on the phone)! Erm, 'the products' have never changed since 2004. They would not reduce the charges. In reality the APR should be reduced to 10.9%(!!!) seeing as base rate is 0.5% so I can only believe they wanted her to close the account due to her age but will not say that!
  Michael
• Ive posted about this earlier in the week but an update!
  Card - Egg
  Rate Increase - 16.9% up to 21.9%
  I had a lot of outstanding debt on this one owing to a move and some house refurbs - started on 0% now they are making their money back!
  I fortunately was paid a handsome bonus so paid back Ј5k this month but still have a Ј5k balance which is to be paid over the next 4-5 months, egg in the meantime have executed my Opt Out request and so the account will close.
  I asked why they had increased it - again said my credit file was the reason, so I asked if it was there in front - so they could spell out to me what was wrong on it..couldn't do that could they..
  Anyway I am happy to close the account I dont rely on the card and this has pushed me to clear it up in double quick time.
  I hope you all have a better time - incidently theis clearing of the "dead wood" is no doubt to fund the new customers on the 0% deal that was announced recently..
  D
• Both my partner and I have cards with Virgin. We haven't spent on them for quite a while and are trying to pay them both off ASAP. We had it all sorted out but in February we both received letters on the same day - his was being hiked from 17.9% to 27.9% and mine from 19.9% to 29.9%! We couldn't believe it!
  I called Virgin and finally got through to someone who told me that the couldn't review the rate on my card as they can only review them every six months. I wrote letters but never heard anything. It's been over six months and i've never heard a thing. I just keep being fobbed off! any advice would be great! No idea of where to go from here.
  I think it is insanely unfair behaviour for good customers!:confused:
• Barclaycard Platinum was 12.4% for many many years and is now 19.8%, even thou I have a direct debit set-up to clear it each month.
• Can someone please help me? I changed my bank account back in June and in the whole exchange process I missed a payment on my barclay card but they kindly understood and returned me back to my promotional rate. After that my direct debit was cancelled AND NOT BY ME!! I confirmed with the bank and told barclay card I had not cancelled it so why had it been cancelled??? They said they can't do anything...they cant change the rate back but they'll file a complaint for me (but I doubt) they'll do anything. Also got a snobby letter and I think its going to affect my credit rating! I have a lot of debt but I hadnt missed any payments previously so this is going to look bad!
  What can I do??