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  #1  
Old 15th August 2009, 08:48 PM
Rachelle Rachelle is offline
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Default Is a reputable bank likely to ...

fleece me by suddenly upping my interest rates on a credit card or loan? I am just wondering where the horror stories of 2000 percent interest etc, have come from. I'm assuming they're all from street corner loan sharks and that I'm unlikely to have my bank debt sold on to anybody else. Is that the right assumption to have?
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Old 15th August 2009, 11:15 PM
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Yes unless you default, your debt is quite safe although they can withdraw credit facilities at any time.

The 2,000% rates are loan sharks although some trading legally, such as logbook loans charge extortionate rates and get away with it.
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Old 16th August 2009, 10:12 AM
mlewis09 mlewis09 is offline
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earlier in the year there was a campaign to end payday and log book loans, i've just had a quick look and i cannot find the e-mail, i guess i didn't save it.

it used an example of a payday loan borrowed in the middle of the month, with an apr of around 900% calculated daily, payment at the end of the month would have required the whole of the wages and another loan to pay it back.

that may have been worse case scenario ... but it shocked me ... i notic there is an advert on tv at the moment, that says 'payday loans are not to be used as a long term financial solution' is that an attempt at being a responsible lender?

as for credit, it could be a whole lot eaiser to get credit, if we had more credit unions operating throughout the UK.

if i find the e-mail, i'll paste it in here as a comment.
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Old 16th August 2009, 10:23 AM
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They have to put that on the avert, the FSA makes them do so but I find it very difficult to find a reason why the FSA would licence these people, it really makes my blood boil, I notice Cash Converters are now offering Logbook loans in their stores, they're another bunch of bandits that want outlawing.
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Old 16th August 2009, 11:41 AM
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My understanding is that if your credit card company puts your interest rate up you can ask to stay on the old rate but you will no longer be able to use the card. I assume you can then come to an arrangement to repay. Not 100% sure about this though
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Old 30th August 2009, 06:13 PM
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Default Re: Is a reputable bank likely to ...

Crikey - does anybody else know about this? i.e. Tony's comments below? That would be useful to know if it ever does go up.
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Old 13th January 2010, 02:29 AM
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Default Re: Is a reputable bank likely to ...

I have received a letter one time from one of my credit card companies when there was a mistake with a payment not going through and they did say that my rate was going up but if I chose not to let it go up on the balance I just could no longer make charges on it. I don't know if that is standard procedure or anything though or just an option that some companies offer. In this particular situation it ended up nto being my fault and so it did not matter anyways but it is true that some credit cards offer that option.
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Old 17th January 2010, 06:45 PM
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I wonder how many people don't actually read the small print on these things and so just end up paying the maximum amount. It is amazing isn't it how few of us know our rights, etc.
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Old 17th January 2010, 06:47 PM
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Default Re: Is a reputable bank likely to ...

Sorry, I have one more question which is probably a really dumb question. You say if your card goes up you're allowed to ask to stay at the old rate. Does this include if you had a card on 0% interest for the first sixteen months for example. I'm guessing the answer is a big fat no but it would be great if there was some cooky little law that meant I could ask to stay at the 0%!!!! All my problems would (nearly!) be solved.
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