Santander 123 credit card rate jacking - one year on

[Mr $quandaŁot]

Twelve months ago Santander decided to increase my 123 credit card interest rate to 29.8%. I subsequently contacted their credit card centre to no avail. I then wrote to Ms Ana Botin, CEO Santander UK. Yes, I really get a kick out of going all the way to the very top!

As the rate increase remained, I decided to reject it. In my case, it was the right decision and I haven't looked back. My balance last summer was about Ł3.7k, now it's just just over Ł2.4k. While paying it off does take time, at least I'm paying more than the bare minimums.

My question now is what do banks expect consumers to do when they jack rates? Would they actually like us to keep the card at a higher rate or do they prefer just not to lend anymore, considering the risk?

They always quote 'credit rating' but Santander had done the same thing to me before with a zero credit card. Again, at that time I decided to reject the rate increase.

[Johnboy007]

Re: Santander 123 credit card rate jacking - one year on

Good for you mate......:tinysmile_twink_t2:

[FlamingParrot]

Re: Santander 123 credit card rate jacking - one year on

My question now is what do banks expect consumers to do when they jack rates? Would they actually like us to keep the card at a higher rate or do they prefer just not to lend anymore, considering the risk?

I can say what I did when MBNA increased the rate to nearly 36% :scared: :mad2: :rant: First I wrote to them arguing that, in 15 years, there had never been a late or missed payment on the card. Their response was pretty much "we can vary our terms whenever we want to whatever we feel like". Mine was to stop paying and send out a CCA request and SAR! :grin: :grin: :grin:

Their reply to both was that they couldn't find the agreement due to 'archival retrieval issues with the A&L' (my card was originally an A&L card from early 90s). It's been 41/2 years and the clock is ticking away nicely. :clock: :clock: :clock:

They always quote 'credit rating' but Santander had done the same thing to me before with a zero credit card. Again, at that time I decided to reject the rate increase.

Surely your credit file wouldn't be affected as long as you keep making at least minimum payments on the agreed dates every month... :confused2:

[PAWS]

Re: Santander 123 credit card rate jacking - one year on

Well, perhaps Santander did not get as much as they hoped in Tax relief when they sold off all those toxic store to credit card debts last year. Ahw, they must be desperate!:violin:

[FlamingParrot]

Re: Santander 123 credit card rate jacking - one year on

Well, perhaps Santander did not get as much as they hoped in Tax relief when they sold off all those toxic store to credit card debts last year. Ahw, they must be desperate!:violin:

That's because they got stung with this one: http://www.bbc.co.uk/news/business-17670803

Santander were saddled with Ł50k worth of co$t$ and, although the case didn't set legal precedent as such, word has got out and few people with storecards upgraded to credit cards are being taken to court. :grin: :grin: :grin:

Obviously Santander didn't want to appeal to avoid the possibility of precedent being set, given there are a few MILLION such cards out there.

[PAWS]

Re: Santander 123 credit card rate jacking - one year on

That's because they got stung with this one:http://www.bbc.co.uk/news/business-17670803

Oh boy did I dance an eight some reel when that hit the headlines! :dance: Arrow Global and all their minions (not to be confused with those lovely chaps in Despicable Me) are trying to rattle the hell out of these now.