Santander 123 credit card rate increase

[Mr $quandaŁot]

Received a lovely letter from the $atan$ saying that they would be increasing the standard rate on my 123 Credit Card to 29.8% APR (variable), effective from 1 August 2013. The current rate 22.9%. These are calculated taking into account an annual fee of Ł24, assuming a credit limit of Ł1,200. Subsequently I spoke to the credit card department and even called in at a branch. I didn't get anywhere. The usual options are to accept the increase or stop using the card and repay it at the current rate. I will choose the latter, but I would still like to take this further, as high as possible as I am truly sick and tired of banks' current behaviour. Should I complain all the way to Ms Botin, CEO, Santander UK? I'm well aware that my letter could get binned but at least I'd feel like I've made an effort. Or should I go to the Ombudsman or contact my MP? Surely, Santander is taking a piss. The only reason they have given is my 'credit rating' which I know is not great, but aren't those nasty interest rate increases only making people more likely to default?

[leclerc]

Re: Santander 123 credit card rate increase

http://www.lendingstandardsboard.org...endingcode.pdf


The section on Credit Card rate increases in number 6 but the bank appear to have been acting within the code. Part 149 downwards is the rejection of an increase....if you read before that it does have the circumstances for an increase.

As to your last question, the answer is not exactly but only if you reject their interest rate increase which effectively renders the card useless.

[FlamingParrot]

Re: Santander 123 credit card rate increase

RThe only reason they have given is my 'credit rating' which I know is not great, but aren't those nasty interest rate increases only making people more likely to default?

In my case, they did! I stopped paying my cards after MBNA increased the rate to 36% :mad2: :mad2: :mad2: :mad2: in 2009, at the time the BoE lowered the base rate to nearly zero to stimulate the economy! :rant: Never had a late payment in 15 years! :mad2: MBNA drove me to start looking at UE, sadly in the case of Satan's Den, this won't be the case as it's a new account.

I never looked at my credit file but I don't think it was that bad in 2009 and it looked like a general increase rather than a personalised one. As for the OP, I believe there's probably just one default on his credit file. :ohwell:

[Mr $quandaŁot]

Re: Santander 123 credit card rate increase

Thankfully, I don't really need a credit card. Yes, it is good for emergencies and great if you are disciplined enough to pay it off every month. Otherwise, you're just making the Ba$tard$ rich. I think this will be a ble$$ing in di$guise. Can't wait for the day when I move all my business away from the $atan$ and let Ms Botin know that I'd been a customer since 1996 but now it's time to move on and also that her bank is run by Spanish banditos!

[FlamingParrot]

Re: Santander 123 credit card rate increase

Thankfully, I don't really need a credit card. Yes, it is good for emergencies and great if you are disciplined enough to pay it off every month. Otherwise, you're just making the Ba$tard$ rich. I think this will be a ble$$ing in di$guise. !

Uhmmmmmmm… :confused2: :confused2: :confused2:

Do bear in mind you probably won't be able to get another card or any form of credit for a few years, it will be 2018 before the default drops off your file! although some lenders only search the last 3 years, so you may get somewhere in 2015, but it's still a long way… :clock: :clock:

Can't wait for the day when I move all my business away from the $atan$ and let Ms Botin know that I'd been a customer since 1996 but now it's time to move on and also that her bank is run by Spanish banditos!

Spanish, British or Chinese, they're all the same :sad: you know what banks are like! msl: msl: msl:

…but you should really consider opening a basic bank account elsewhere… :thumb: just in case…

[leclerc]

Re: Santander 123 credit card rate increase

FP, can I clarify what you are suggesting the OP does? Are you suggesting he defaults on the card or simply rejects their increase and continues to pay off the card until it is paid off(which is allowed within the guidelines of the Lending Code).

Just tell me I am reading more into this than is on the page but it seems to suggest intentionally defaulting on the card and not paying anything until statute of limitations.....

[FlamingParrot]

Re: Santander 123 credit card rate increase

FP, can I clarify what you are suggesting the OP does? Are you suggesting he defaults on the card or simply rejects their increase and continues to pay off the card until it is paid off(which is allowed within the guidelines of the Lending Code).

Just tell me I am reading more into this than is on the page but it seems to suggest intentionally defaulting on the card and not paying anything until statute of limitations.....

No, that's not what I'm suggesting, on the contrary, I'm saying he should consider keeping the card so he can still use it, because he may find it difficult to obtain credit for the next few years. The OP has another thread relating to another card he defaulted on last year, an M&S store card turned credit card which is unenforceable as per Santander v Mayhew: http://www.legalbeagles.info/forums/...card-what-next That's what I was referring to with the dates, that default will stay on file till 2018, although if a lender only searches the last 3 years, he may be able to get some credit in 2015, but it would be hard for him to get anything before then, other than maybe a Vanquis at an even more ridiculous rate! :rant:

[Mr $quandaŁot]

Re: Santander 123 credit card rate increase

I'm now looking for a basic bank account elsewhere. I already stopped using another $atan$ card three years ago when the upped the rate, not much left on that one now and the balance was thousands at the time. Then they offered me 123 card with a lower rate. Three years ago I had no defaults. $atan$ increased the rate as that's what they felt like at the time. I do feel sorry for their ordinary staff as so many times when I've visited their branches people are complaining. While all banks might be pretty much the same, I think the $atan$ are the worst of the bad bunch!

[Mr $quandaŁot]

Re: Santander 123 credit card rate increase

I wrote all the way to Ms Botin, CEO, Santander UK plc!

I rejected the rate increase and I'm no longer using the card. $atan$ are Ba$tard$ but at least following my complaint to the CEO, some of my issues were addressed swiftly such as CPP insurance miss-selling.