Just when you thought their manipulation of the truth to extract money from us couldn't get any worse... or more ridiculous!
I'm sure by now lots of you will have latched onto the latest game by the credit card providers - the now constant use of variation notices on both delinquent and non-delinquent accounts, to hike interest rates and offer up 'market conditions' as the reason to justify this?
Well, this morning I have received two letters. One from M&S Money bless 'em, who have, 'because of market conditions and your account status', actually decided to REDUCE my interest rate!
I then gingerly opened the other envelope. It was from Barclays/FirstPlus, who I have a second mortgage with. They want to INCREASE my rate for exactly the same reasons! :rolleyes: If it wasn't so bizarre it would be funny!
I've smelled a rat about this practice for a while now and have written about it on other boards (including a guideline piece on what to do when you get these letters).
Isn't it about time we took the industry on over this latest example of legalised robbery? The Regulators are staying away in droves on this one (do they ever do anything else?) and the banks are getting away with it once again.
I know that the variation notice is ostensibly a legitimate part of some agreements and one which we sign up to - but they have in my view sneakily transformed it from a occasionally-used tool to reflect their costs of doing business, into a profitable 'inertia' scam - and it's that which I think is completely out of order.
Thoughts, anyone?
I'm sure by now lots of you will have latched onto the latest game by the credit card providers - the now constant use of variation notices on both delinquent and non-delinquent accounts, to hike interest rates and offer up 'market conditions' as the reason to justify this?
Well, this morning I have received two letters. One from M&S Money bless 'em, who have, 'because of market conditions and your account status', actually decided to REDUCE my interest rate!
I then gingerly opened the other envelope. It was from Barclays/FirstPlus, who I have a second mortgage with. They want to INCREASE my rate for exactly the same reasons! :rolleyes: If it wasn't so bizarre it would be funny!
I've smelled a rat about this practice for a while now and have written about it on other boards (including a guideline piece on what to do when you get these letters).
Isn't it about time we took the industry on over this latest example of legalised robbery? The Regulators are staying away in droves on this one (do they ever do anything else?) and the banks are getting away with it once again.
I know that the variation notice is ostensibly a legitimate part of some agreements and one which we sign up to - but they have in my view sneakily transformed it from a occasionally-used tool to reflect their costs of doing business, into a profitable 'inertia' scam - and it's that which I think is completely out of order.
Thoughts, anyone?
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