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?
Santander 123 credit card rate increase
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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."Family means that no one gets forgotten or left behind"
(quote from David Ogden Stiers)
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Re: Santander 123 credit card rate increase
Originally posted by Mr $quandaŁot View PostRThe only reason they have given is my 'credit rating' which I know is not great, but aren't those nasty interest rate increases only making people more likely to default?
I never looked at my credit file but I don't think it was that bad in 2009 and it looked like a general increase rather than a personalised one. As for the OP, I believe there's probably just one default on his credit file. :ohwell:
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Re: Santander 123 credit card rate increase
Thankfully, I don't really need a credit card. Yes, it is good for emergencies and great if you are disciplined enough to pay it off every month. Otherwise, you're just making the Ba$tard$ rich. I think this will be a ble$$ing in di$guise. Can't wait for the day when I move all my business away from the $atan$ and let Ms Botin know that I'd been a customer since 1996 but now it's time to move on and also that her bank is run by Spanish banditos!
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Re: Santander 123 credit card rate increase
Originally posted by Mr $quandaŁot View PostThankfully, I don't really need a credit card. Yes, it is good for emergencies and great if you are disciplined enough to pay it off every month. Otherwise, you're just making the Ba$tard$ rich. I think this will be a ble$$ing in di$guise. !
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:
Originally posted by Mr $quandaŁot View PostCan'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!
…but you should really consider opening a basic bank account elsewhere… :thumb: just in case…
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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....."Family means that no one gets forgotten or left behind"
(quote from David Ogden Stiers)
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Re: Santander 123 credit card rate increase
Originally posted by leclerc View PostFP, 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.....
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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!
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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.
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