Credit Cards.

[RGDave]

So,

I get a letter from the co-operative bank advising me of some "changes" to my credit card.

I have a platinum card. 9.9% reverting to 12.9% after 5 years. I'm on the 12.9%

According to the letter they have "reviewed" my account and for reasons they don't seem able or prepared to discuss, 12.9% is no longer acceptable so they want to put it up to 14.9%.

OK, so within 10 minutes, I'd paid the card off in full and cut it up and put it in the bin.

- - - - -

There was me thinking they obviously weren't making enough money out of me, so they thought they bump up the rate.
BUT, according to an dinner party guest I spoke to tonight, financial companies are actively looking to either offload customers or charge them more for services to create more income from accounts that don't generate any profit.

- - - - -

Before I write to them and express my "opinion", has anyone else had this sort of thing?

 

[Imurg]

There used to be an Yearly Charge for Credit Cards - if you paid your bill in full that's the only way they would make any money from you.
That all stopped a few years back so if you do pay off your balance every month then it's costing the CC company to keep you on it's books.
I can understand why they do it - not morally right though.

 

[PhilTheFragger]

Their interest rates bear no relation to base rates, it should be against the law to charge these rates.

having said that I use my card a lot, but it gets paid off each month, so I never pay a penny,
But if you are late, then the fees start, so only use one if you can pay it off each month

Fragger

 

[CliveW]

I got a letter from HBOS saying that because I hadn't used my card they weren't going to issue me with a new one when it was due for renewal. I phoned them and they explained that I wasn't a "responsible" customer because it wasn't being used! I promply went on to itunes and bought one song for 89p so it was being used and my new card arrived within the week.

 

[Captainron]

This sort of thing happens all the time. I am a bank manager and come across this all the time. Banks are in the game to generate profit. i'm sorry to say that staying loyal doesn't always mean you're on the best deal. I would urge you to shop around whenever you get the chance. Credit Cards which remain unused for prolonged periods of time can be shut down by the issuer as they represent a potential debt. Seen many customers who want to lend money but have 3 credit card with zero balances worth £25k odd and they are refused because they have the potential to add £25k to the loan they want and this would put them in financial distress. If you have a credit card use it. Some banks give you cash back for spending money on your card. If you normally pay cash for your petrol for example, pay on your credit card. Then pay the balance in full with the cash you have and MAKE MONEY FROM THE BANK for usign a credit card. As long as you pay the balance off in full each month you will be a winner. check how long your interest free period is for purchases (usually 58 days) and as long as you keep within the limits by the issuer you wont pay any interest.

 

[Rooter]

Great advice from captainron. On a side note, for anyone out there with a balance outstanding, I just got an awesome deal on a balance transfer from barclaycard, 0% for 23 months with 2.8% transfer fee. Finance companies seem to be lending again pretty happily as they gave me a stupid limit! Although I just transferred what I wanted and it up the card, the balance should be gone in the 2 years at zero interest! Sweet.

 

[bobmac]

Am I the only person in Britain who doesn't have a credit card?
I wonder how many people would get rid of theirs if they were given their correct name..... debt cards......

 

[chris661]

I wonder how many people would get rid of theirs if they were given their correct name..... debt cards......

I would imagine not many as a lot of folk see them as free money

 

[CMAC]

Before I write to them and express my "opinion", has anyone else had this sort of thing?

Mortgage endowment company- Standard Life- wrote and assured me that they are guaranteeing to meet the agreed endowment figure when the mortgage was due despite the issue with endowment mortgages- phew thats a relief I thought.

2 years later they wrote and said "even though we guaranteed to meet it we are now writing to confirm we wont meet it and you will have a serious shortfall to pay off your mortgage"

Wonder if Nick Clegg is their policy spokesperson!:angry:

 

[Paul_Stewart]

Am I the only person in Britain who doesn't have a credit card?
I wonder how many people would get rid of theirs if they were given their correct name..... debt cards......

That makes two of us then. Anyone who gets themselves into stupid debts with credit cards deserves no sympathy at all.

 

[Hobbit]

Mine is for emergencies.

Occasionally that might include a new driver.

 

[duncan mackie]

Mine is for emergencies.

Occasionally that might include a new driver.

Mine's because it's the best (only) way to get real purchase protection.

 

[RGDave]

That makes two of us then. Anyone who gets themselves into stupid debts with credit cards deserves no sympathy at all.

I didn't say anything about debt. It's because I don't rack up the "D" word that my bank are obviously not happy.

 

[RGDave]

This sort of thing happens all the time. I am a bank manager and come across this all the time. Banks are in the game to generate profit. i'm sorry to say that staying loyal doesn't always mean you're on the best deal. I would urge you to shop around whenever you get the chance. Credit Cards which remain unused for prolonged periods of time can be shut down by the issuer as they represent a potential debt. Seen many customers who want to lend money but have 3 credit card with zero balances worth £25k odd and they are refused because they have the potential to add £25k to the loan they want and this would put them in financial distress. If you have a credit card use it. Some banks give you cash back for spending money on your card. If you normally pay cash for your petrol for example, pay on your credit card. Then pay the balance in full with the cash you have and MAKE MONEY FROM THE BANK for usign a credit card. As long as you pay the balance off in full each month you will be a winner. check how long your interest free period is for purchases (usually 58 days) and as long as you keep within the limits by the issuer you wont pay any interest.

I do use my card (I use it quite a lot) but I only pay minimal interest.

What gets me though is the wording of the letter. "Having reviewed your account..." They make it sound as if someone has genuinely looked at my usage and come to some sort of conclusion about my value as a customer.

I'd probably have been happy with a letter explaining that my usage doesn't justify the expense of maintaining the account. THAT I could live with.

t.b.h. the sad fact is that for many years I have not only endorsed the co-op brand but actually recommended them to other people. From now on, I shall simply "erase" them from my list of possibles should I need any sort of financial product.

I don't care about 2%. I do care about the attitude.

HSBC are constantly pushing me to take up a "premium" account. I'm not interested. Should push come to shove, I can see myself moving the whole package elsewhere.

I think they are getting it wrong. In know loyalty is dead, but is it that hard to be open? - if a product doesn't make sense to a bank, write to the customer and ask them to either move to a different deal or ask them to close their account.

 

[Iaing]

Am I the only person in Britain who doesn't have a credit card?
I wonder how many people would get rid of theirs if they were given their correct name..... debt cards......

Me too Bob. I was brought up to save for anything I want. And if I can't afford to buy it twice then don't buy it at all.

 

[Captainron]

I loathe the over the top sales culture that exists in banks these days. We are pressured everyday to sell more. Targets up each quarter in the products that generate the most income.

The bonuses earned by the staff in branches (not the millions the big knobs get) is so heavily weighted in favour of sales compared to service. For example. If one of my sellers achieves 100% of their target they get £400 odd before tax. If they hit 100% of the service target they get £75 before tax. This is the wrong way round in my opinion.

Changing banks will not stop them trying to get your entire portfolio over to them.

The credit card situation would have been computer generated. All cards which fitted x,y and z criteria got the mailing. Profiteering of the highest order.

Make a formal complaint. When (bot if) they decline it then ask for it to be escalated to the Financial Ombudsmans Service which is your right. Each referral costs the bank £650 odd (I used to work in complaints). Even if you don't win, you have the satisfaction of knowing that they have paid more for the loss of your business.

 

[Dodger]

Changing the subject slightly I was in M&S today and went to pay for the stuff I had and the bird on the counter tells me just to 'flash my card over' the screen of the card monitor and that'll be the card transaction done.......I declined and did it the 'old' way by inserting my pin.


How can this be safe? I could have had anyone's card with me!!!

Next time however I must remember to take the birds card next tine I visit M&S.

 

[RGDave]

Make a formal complaint. When (not if) they decline it then ask for it to be escalated to the Financial Ombudsmans Service which is your right. Each referral costs the bank £650 odd (I used to work in complaints). Even if you don't win, you have the satisfaction of knowing that they have paid more for the loss of your business.

OK, now there's a project.

I will complain. I'll not only do it in my own inimitable style, I will also make it 100% clear that as the product is currently available to anyone (with the correct credit rating, no doubt) I am being targeted for no good reason.

I shall look forward to writing the letter.......

Thanks.

 

[Hobbit]

Make a formal complaint. When (bot if) they decline it then ask for it to be escalated to the Financial Ombudsmans Service which is your right. Each referral costs the bank £650 odd (I used to work in complaints). Even if you don't win, you have the satisfaction of knowing that they have paid more for the loss of your business.

OK, now there's a project.

I will complain. I'll not only do it in my own inimitable style, I will also make it 100% clear that as the product is currently available to anyone (with the correct credit rating, no doubt) I am being targeted for no good reason.

I shall look forward to writing the letter.......

Thanks.

I've been appalled by the level of service I've received from the RBS this year. In Feb they cost me over £300 with poor advice. Foolishly I went back to them in July for mortgage advice and they screwed up again. We met with the branch manager(what a joke), who refused to accept it was the branch's fault. Wrote to the complaint's dept and got £250 credited to my account.

However, the branch manager gave further advice, which has subsequently turned out to be inaccurate. When I spoke to her again she blatantly lied on 2 points - not just fudged around what was said in the meeting but actually denied saying it. I then asked for the contact details of the Area Manager and was told I couldn't have them and if I wanted to make a complaint it would have to go across her desk. The whole issue is now with the FOS, and we are moving banks.

 

[chrisd]

Am I the only person in Britain who doesn't have a credit card?
I wonder how many people would get rid of theirs if they were given their correct name..... debt cards......

I didn't until recently Bob, but when I started buying more on the interwebby thing I realised that my statutory rights were in danger, so now it goes on the card and I square it a soon as I get the statement

I havn't ever used a hole in the wall though - am I the only one?