CB Vs LTSB Platinum Card

[Curlyben]

Well this is proving interesting.
This is my primary card with a rather unhealthy balance.
Done the SAR thing and there's a few hundred in charges, I have yet to send a prelim.

Now they have increased the APR twice over the last 18 months and I wanted to get to the bottom of this, so I recently fired this off to them:

Dear Sir/Madam,

ACCOUNT NUMBER: XX XX XX XX XX

Could I please have an explanation and clarification as to the reasons and methodology used when determining what monthly interest rate to charge on a card.

Over the last 18 months the monthly interest rate has increased on THREE occasions from 1.094% a month at inception, to 1.240% in October 2006, to 1.597% in July 2007 and finally to 2.210% in December 2007. I would like to know the detailed reasoning behind these increases, especially as the overall rate has increased by 1.116% per month, more than doubled, since the account inception in February 2005. This equates to an overall increase to 29.9% APR from the original 13.9% APR a raise of 16% !

I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you would prefer to do this than merely respond with standard letters and leaflets.

I would appreciate your due diligence in this matter.

I await your rapid response.


Yours Faithfully,

Today I got a response.
ANyone want to guess what they had to say ??

[Mochamoos]

Re: CB Vs LTSB Platinum Card

tough doo doo its in your T&C's?

We will get back to you in 8 weeks?

[LuggerBugs]

Re: CB Vs LTSB Platinum Card

Your account has been assigned to Cabot Financial (UK) Limited. Please direct all further enquiries to them.

[Curlyben]

Re: CB Vs LTSB Platinum Card

Yeah yeah funny guys, but close to the truth.

Dear CB,
Thank you for your recent enquiry, it has been passed to me for my personal attention and response.

I can confirm that it is not possible to change the APR of this credit card back to its previous rate.

However you may be eligible for an upgrade to a different LTSB credit card product with a more competitive interest rate. Please call our dedicated New Application department to discuss your available options.

In the mean time, the T&C of your credit card are not individually negotiable and, while we do not want to lose your valued business, if your account remains open, it will be deemed that you accept the new rate of interest.

Yours insincerely

Squiggle.

Now I didn't ask for the rate to be reduced (yet) and if I could get a different card I would of moved ages ago.

Now surely "the T&C of your credit card are not individually negotiable" breaches UTCCR ?!

Oh well might give em a call as it's a freephone number, you never know.

Before I do I think another letter is in order as they have completely failed to address any of my points.

[ByTheWay]

Re: CB Vs LTSB Platinum Card

So typical of Lloyds, instead of addressing your queries/problems they offer one of their alternative products!!
I'm sure you'll have fun with this CB

[LuggerBugs]

Re: CB Vs LTSB Platinum Card

Why not send back a copy of the T&C's with THEIR rate scored out, and YOUR rate written in. With a letter explaining that, if you don't hear anything to the contrary within 7 days, it will be deemed that they accept the new rate of interest.

[Sapphire]

Re: CB Vs LTSB Platinum Card

Why not send back a copy of the T&C's with THEIR rate scored out, and YOUR rate written in. With a letter explaining that, if you don't hear anything to the contrary within 7 days, it will be deemed that they accept the new rate of interest.

Naughty, Naughty Lugger but worth doing if only for the entertainment factor lol.

[Curlyben]

Re: CB Vs LTSB Platinum Card

OK so time for another letter I think.

Any comments/suggestions on this one ?
Needs a bit of a polish, but the substance is there.

Thank you for your letter of xx/xx/xx the contents of which are noted.
I am concerned that no attempt has been made to answer the questions that I have posed.
I enclose a copy of my previous letter your perusal and ease of reference.

I request, again, clarification concerning the methodology employed when calculating interest rates for accounts of this type.

As an addition I would also like an explanation why monthly interest is applied to my account in two, or more, distinct applications.
I monitor my accounts online and I have noted this occurrence over the last few months.
The interest eventually is posted as a single transaction, but it clearly isn't.

I am disheartened to note in the response to my initial communication, the apparent disregard for the Office of Fair Trading's unfair Terms in Consumer Credit Regulations section 5.

You comments "I can confirm that it is not possible to change the APR of this credit card back to its previous rate." and "the T&C of your credit card are not individually negotiable and, while we do not want to lose your valued business, if your account remains open, it will be deemed that you accept the new rate of interest." clearly are at odds with these regulations.

For clarity UTCCR section 5 (1) and (2) state:

5. - (1) A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.

(2) A term shall always be regarded as not having been individually negotiated where it has been drafted in advance and the consumer has therefore not been able to influence the substance of the term.

While we are dealing with account matters I would like to request a copy of the signed executed credit agreement and T&C that apply, as is my right under the Consumer Credit Act 1974 section 78(1).
I enclose the statutory ONE POUND fee for this request and note that CCA74 applies to this account as it was opened in February 2005, prior to the enactment of CCA 2006.


Thank you, you muppet, and lets hope you get your head out of your butt long enough to give me a decent response.
Don't feck about with CB as YOU will get burnt.

Yours assskickingly

CB

Ps have a nice day.

[LuggerBugs]

Re: CB Vs LTSB Platinum Card

I enclose the statutory ONE POUND fee for this request and note that CCA74 applies to this account as it was opened in February 2005, prior to the enactment of CCA 2006.

For some strange reason, the CCA 2006 is being treated as an amendment to the CCA 1974. Not entirely sure of my ground here, as I had initially thought it was a whole new act in its own right.

So basically, the CCA 1974 appears to be the governing act, as for instance, you'll still sign an agreement that states it is regulated as such. Maybe someone cleverer than me can explain why this is so.

But anyway, back to the point I was trying to make... that being the case, perhaps this bit could do with a rethink of the wording, CB?

[Curlyben]

Re: CB Vs LTSB Platinum Card

CCA 2006 was enacted and came into force in April 2007, so any agreements signed prior to that date are governed by CCA74.

CCA06 negates and changes certain parts of CCA74, s127 for example.
CCA06 also introduces unfair relationships into the equation, making things interesting.

I must admit I haven't done much work with 2006 as yet as I have a few 1974 issues to resolve first.

[LuggerBugs]

Re: CB Vs LTSB Platinum Card

CCA06 also introduces unfair relationships into the equation, making things interesting.

Especially since that part is RETROSPECTIVE.

[Curlyben]

Re: CB Vs LTSB Platinum Card

Well I finally got my head out of my rear end and sent them my slap.
Lets she what they have to say.

[jax007]

Re: CB Vs LTSB Platinum Card

Hi Ben

Great stuff!

Maybe this is another area where we can kick the *******s where it hurts??!!

Wouldn't it be great if by your reasoning we can get all our credit card interest rates reduced to a figure we can negotiate!

Nice one

jax

[Curlyben]

Re: CB Vs LTSB Platinum Card

Well considering the comments in the previous letter I'm more than happy to take this to the FOS and OFT for resolution and I have told them that fact.

I'm not looking at being unreasonable here, but to increase the APR in this manner is seriously out of order.
My payments are up to date and I always, well until recently, pay more than the minimum required.
OK I'm close to the limit and have been for a while, but that isn't the point, is it ?!?!

[jax007]

Re: CB Vs LTSB Platinum Card

Well my payments always USED to be up to date and I ALWAYS paid more than the minimum, however in recent times I have struggled and have missed payments.

I have been 'rewarded' by having my credit limit reduced and the interest rates put up to such an extent whereby some of them are around 34% - I really don't know what they are trying to achieve here ??

Nor will they reduce the interest!