It has been suggested by some lawyers that the interest rates being charges by some credit card providers in the UK may not actually be legal because of little known clauses in the Consumer Credit Act.
According to reports lawyers believe that some credit card firm may be frightened of the clauses coming to light, resulting in customers taking legal action against them.
The base interest rate has now been at an all time low of just 0.5 percent for one year now, and this is something that will have pleased many borrowers.
However, despite this rock bottom base rate the gap between the base interest rate and the average credit card interest rate has been increasing, with credit card interest rates reaching their highest levels in well over a decade according to recently released data.
The average rate of interest being charged on credit cards has now exceeded 18 percent, and this something that could financially cripple already struggling borrowers.
One lawyer who looked into this issue stated: “Bank executives are terrified that someone might take this to court and win, opening the floodgates for millions of other card holders.”
”In a test case in 2001, a court established that the lender would have to show they had not acted unreasonably. But the 2008 change brought in a rule preventing lenders imposing an ‘unfair relationship’ with their borrower”
Tags: interest, credit card interest rate, debt, credit card, Consumer Credit Act, credit card interest”The old curb on credit charges said consumers could only contest them if they were ‘extortionate’. The onus has moved to a situation where it’s up to the card provider to prove they are not being unfair – and there appears to be a strong argument they are when the base rate is so low.”
im one of those credit card debtors and i admit i need more that 1 hard kick in the rear from the creditor before they settle for less weact like children so we should be treated as such not speaking for those who had medical billsand such
How To Keep Your Credit Card Interest Rate At 0%: We’ve all been tempted by 0% credit card interest rate offers….
I stumbled on your page looking for ways & inspiration to buiild my biz but after your cute comments I had to laugh & read them to my teenage son who sayz “he's as silly as u mom! So, u think in our current gas, mortgage credit card interest rate increase we could come up with an answer to make some bucks on the net! I have a lot of pics of my crazy pets but how do u get copywright protection? I think the monopoly bucks might work if u gave them to people with small hands (maybe they won't notice)! If u know of any little people who don't see too good good send them to me & I will give u a referral fee!
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who misses him saying awwww what happened when he kills somebody?
I would NOT recommend Capital One. Although my rate was not tripled, I had a similar problem with my “fixed” credit card interest rate changing. In April of 2007, after nearly 7 years at 6.99%, Capital One nearly doubled my rate to 12.99% despite my paying well over the minimum every month, and always paying on time. When I called, the Capital One rep. said that they had notified me by mail of the change (and they probably did so, but I don't read all of 3-4 pieces of mail I get from them EVERY week!). She kindly explained that is was “just a business decision” to increase my rate and that I was not “singled out” for this increase. After transferring me to a superior (and a long hold), I was offered the lower rate of 11.99% (still 5% higher than my initial rate)!?
I angrily declined, opened another account (Simmons First), transferred my balance, and left Capital One for good.
Of course, this took me several months to open the new account and complete the transfer, so I had to pay the extra 5% for that time period…
I don't know if Capital One has the “any time for any reason” clause, but the sort of problem you report with Bank of America also happens to Capital One customers…
I've experienced “change”.
No, not the kind of change that was promised in any campaign. Not a sex change. Just plain and simple change…and trust me when I tell you, I crapped my drawers when it happened.
I noticed that my credit card interest rate had gone from 6% to 28%. It was kind of shocking considering I celebrate a perfect credit score and a long history of punctual payments. What made matters worse was that the balance on my card was so minimal that I didn't notice the increase for a little over a year. I picked up the phone to inquire as to the source of this dramatic increase, and before I could launch into the “I’ve been a card holder since 1914” rant, I was asked to hold while the service rep awaited her supervisor to join the call…and then it happened. The Supe hops on the phone and delivers a heartfelt apology for any inconvenience that this may have caused me, and then declared that my rate will be adjusted back to 6%, and all payments made during the past year will be credit towards my balance. Can you believe that?
Listen, I can’t say that I am staunchly entrenched against El Presidente or anyone for that matter. I prefer to drink my beers with Republicans and do my drugs with democrats. I work in the financial sector and am fearful, scratch that, terrified of the way largely unqualified individuals have pivotal roles in determining how to recharge our slumping markets. But with all that said, despite being firmly against his candidacy (and even more so for his secretary of state), and I have struggled with much of his strategy thus far, I will begrudgingly admit that I am enamored with Barack.
So Mark asked how folks are liking the change? Well, in this one instance, I am liking it…and I have the soiled drawers to prove it.
“standard rates apply”
My credit card interest got over 20% before I defaulted. No job, no money, no payment.
take away his credit card.
I say we should got back to be able to deduct credit card interest on our Federal taxes. Then interest rates will come down. The Feds would make sure of it.