'valid' reasons for credit card interest rate alterations

[egg-sterminator]

Hello ! thanks for that comment but I can't agree with that I have found so many errors in all my agreements e.g. MBNA typographical errors section 8(1) referred to when no section 8(1) only section 8 (a) another refers to section 14 but no section 14 stops at 12, they also failed to state the APR for goods only for cash advances when the Total Charge for Credit has to be stated anyway.. etc etc etc....... I realise a lot of the time they get it right like bank guarantees, unfortunately, but these credit card agreements leave you wondering who they have used - if they got them right they would all be nearly identical and they're far from that. Another one Mint fixes the margin of interest at 9.41% above base so having done that they have a big problem then trying to get it up to 19% when base is now 0.5 % !

you've done some pioneering stuff CAPTAIN tipping your scales .

[captain2]

Thank you Egg Sterminator - I just hope it has some grounds in court ! But an agreement/contract is just what the terms and conditions tell you there's no magic preconceived template that says its enforceable or not - at least outside of the prescribed terms being enforceable that is. My own company has terms and conditions and I am always mindful that the court may find against me if they are unfair or biased towards me - and I'm sure they would find that if they were - so why should banks be any different.

All the best !

[egg-sterminator]

Thank you Egg Sterminator - I just hope it has some grounds in court ! But an agreement/contract is just what the terms and conditions tell you there's no magic preconceived template that says its enforceable or not - at least outside of the prescribed terms being enforceable that is. My own company has terms and conditions and I am always mindful that the court may find against me if they are unfair or biased towards me - and I'm sure they would find that if they were - so why should banks be any different.

All the best !

Hows it going captain ? may use a little of your stuff myself soon . Will be fighting egg as well soon my agreement is an online app june 2005 but has the approved limit/limit dont yet know if this holds water in an online app ? Do you remember when online sigitures became legal ? Thanks Cap and good luck .

[captain2]

Hi there - its going no where fast for either side - I'm waiting to drop my 'depth charge' so to speak and they wont put me in the position of being able to use it as they just will not reply to letters ! Still no copy agreement sent despite several reminders - i have copy agreements already but im just wanting to see what they send again ! Same with MBNA except they are pleading for me to make a full and final offer - which i'm looking at doing at 12 per cent paid over 3 months in 'without prejudice' format. Then if they accept I will tackle them about the mis-sold insurance ticked box at that point - if they don't accept i will be off the trading standards dept.

How are you doing ?

[captain2]

Online signatures I think were post 04. According to site team member approved limit is not credit limit - and been upheld in a county court but off to high court in March re that definition. So tread water till then maybe......

[egg-sterminator]

Online signatures I think were post 04. According to site team member approved limit is not credit limit - and been upheld in a county court but off to high court in March re that definition. So tread water till then maybe......

Mbna play dirty check out professorgbrs thread "mbna application form" about time they were outed .

[steve2577]

Hello

 

Reading your first thread I would like you to know that my position is very similar in fact if it makes you feel better it's a lot worse.

 

14 CC total debt around £65k

 

6 CC for my partner around £40k

 

I have opted to put my partners stuff through a third party company because I just can't cope with the volume of information and study required to try to get me out of this mess.

 

My cards are MBNA (3), Barclaycard (3) Egg, RBS, Lloyds TSB, Citigroup, HFC, Tesco, Amex.

 

Feel like I'm in quicksand at the moment but seeing guys like you and others on the site and with the assistance and encouragement offered has spurred me on (the cyanide has been put away).

 

Hope you are progressing and if you think we can help each other let me know. I have posted 2 threads at the moment concerning Tesco and Amex but more to follow as I open the days post.

 

 

Cheers8)

[InformedSearcher]

'steve2577' - Heck if there was a case of 'irresponsible' lending by CC companies this would certainly fall into that. Before you got these cards (unless offered) they'd have had to check with CRA's. I would consider a court to look at this quite badly in respect of the lenders. I'd take further reference on this if I were you and also track the APR changes to reflect how you've been put in an untennable situation.

 

Michael

[captain2]

Hi Steve **EDITED** - i know its easier said than done but don't worry about it ! They wont bankrupt you otherwise they will lose their consumer credit licence for not sticking to the Banking Code (thats what Payplan told me anyway ) - its their fault they shouldn't have lent the money so easily - consumers and money are like junkies and drugs its habit forming ! Looking back now on my own position and yours did anyone SANE really expect to be able to repay all that ? The irony is had interest rates not been hijacked we probably at least had a chance of bringing it back down again in due course so thats also their fault. Anyway the agreements you have may well be unenforceable do you know if they are yet ?

Edited November 24, 2009 by car2403
Why?...

[exchange]

steve2577, to try and make you feel better have a look at my threads and you'll see that you are not alone, as I'm sure you already know if you've looked around this website much!

I was also feeling at a loss what to do when I had a car accident in February of this year and everything else that could go wrong seemed to. With the help of the people on this site I am now disappointed when there is no post as I feel confident to fight most things thrown at me by these inconsiderate sharks.

Do not let them get to you and I will follow your threads as will others anonymously. One improvement there could be on this site is some way of knowing how many people have subscribed to your threads as this would give some comfort that others are watching what is happening.

Best of luck.

Exchange

[car2403]

Any advice on this forum should be giving in public view so it can be corrected if wrong or steered in the right direction if inaccurate

 

You should NEVER, EVER, accept advice from an individual via PM that you do not know. Common sense should prevail.

[steve2577]

'steve2577' - Heck if there was a case of 'irresponsible' lending by CC companies this would certainly fall into that. Before you got these cards (unless offered) they'd have had to check with CRA's. I would consider a court to look at this quite badly in respect of the lenders. I'd take further reference on this if I were you and also track the APR changes to reflect how you've been put in an untennable situation.

 

Michael

 

 

Last year I owed £197K I re-mortgaged and paid them about £90k so now in negative equity and redundant just managing to keep afloat.

 

The one thing that spurred me on this was that Capital One (Debt £12k) wrote informing me that the interest rate was increasing fom 34% to 38% this is the straw that broke the camels back so to speak.

 

 

Steve

[InformedSearcher]

Last year I owed £197K I re-mortgaged and paid them about £90k so now in negative equity and redundant just managing to keep afloat.

 

The one thing that spurred me on this was that Capital One (Debt £12k) wrote informing me that the interest rate was increasing fom 34% to 38% this is the straw that broke the camels back so to speak.

 

 

Steve

 

 

Yes, tell me about 'redundancy'! There was me convinced I'd be employed elsewhere in weeks that dragged onto months and still nothing. However financial institutions 'ignore' that factor - at least you get more phone calls to brighten up the day!

 

'car2403' states wise and logical comments about help/offered by PM is genuine.

 

Michael

[blueotter]

Steve,i'm in the same situation is you i have plenty of threads started and feel so much better since finding this forum and arming myself with the information that's required to take on these faceless entities.

 

Somebody mentioned about "irresponsible lending" a few posts back and i think most of us fall into that category but legally is there anything that can be done ??

 

Feel free to check out my threads on amex.co-op,mbna etc ,its all gone very quiet recently because i've stood up to them and basically dared them to take me to court on the basis of their faulty cca's.

 

good luck

[captain2]

Hi if you read the Banking Code they are not supposed to lend irresponsibly and in case of difficulties they are supposed to be fair and sympathetic -

they cant take you to court under the code if you have been cooperative and paid what can be afforded under a DMP or token sum if you have negative income.

 

While that is going keeping them at bay the enforceability route can be checked with a no win no fee agreement lawyer auditor - then once you know you are on firm ground get a declaration of unenforceability.

 

Then consider buying them off in exchange for CRA statement of full satisfaction and even removal of defaults if possible so your record can start to repair itself .......

[blueotter]

I have cca's that i believe to be non-enforceable,i' don't think there's much point in getting legal advice to support this and i'm not in a position to pay them anyway.

The advice to continue making monthly payments whilst sound enough does take one away from the satute barred road so are you suggesting that once both parties have established there's no point in going to court they may as well reach agreement with a settlement ?

 

I wish it would but have you tried settling or negotiating with these sharks ? its not an easy thing to do

[captain2]

hi it depends on your circumstances - if u ever need future credit i would rather do without it and i dont need it - my auditor is no win no fee specialist - my own case im going to look at paying £2 a month to each - if its not enforceable the recent court ruling was it could stay on file even if unenforceable and never paid and overpayment of interest in some of my arguments which would require court appearance and if successful may reduce or extinguish claims at which point the CRA's would have to show perhaps it never existed -

[blueotter]

hi it depends on your circumstances - if u ever need future credit i would rather do without it and i dont need it - my auditor is no win no fee specialist - my own case im going to look at paying £2 a month to each - if its not enforceable the recent court ruling was it could stay on file even if unenforceable and never paid and overpayment of interest in some of my arguments which would require court appearance and if successful may reduce or extinguish claims at which point the CRA's would have to show perhaps it never existed -

 

do you mean enforceable here ?

 

the bottom line is ,do you need that credit rating .

 

In my own circumstances i am in rented accommodation,next year i have to move and apply for more rented accommodation which is credit scored .

Now if i get knocked back on the basis of my credit rating i effectively can't live anywhere.........................all because of a damged credit rating brought about by contesting faulty cca's.

[captain2]

Hi there ! I mean 'unenforceable'' the recent case with Royal Bank of Scotland and McGuffrey recently where the borrower had never made any payments under a loan agreement and he sued via his claims advisor on grounds he could not be defaulted if agreement was unenforceable - judge held that even if the agreement is unenforceable the debt is still there and thus can be reported to the CRA's. It is potentially unfair and much depends on having good credit rating. I have a mortgage so as long as I can keep up with that I don't need any more credit my job now is to hang onto what Ive got. It sounds a tough situation arising in your case can you get help somewhere or a housing association place ?

[InformedSearcher]

Hi there ! I mean 'unenforceable'' the recent case with Royal Bank of Scotland and McGuffrey recently where the borrower had never made any payments under a loan agreement and he sued via his claims advisor on grounds he could not be defaulted if agreement was unenforceable - judge held that even if the agreement is unenforceable the debt is still there and thus can be reported to the CRA's. It is potentially unfair and much depends on having good credit rating. I have a mortgage so as long as I can keep up with that I don't need any more credit my job now is to hang onto what Ive got. It sounds a tough situation arising in your case can you get help somewhere or a housing association place ?

 

 

Blimey thank you for that - I never realised a CRA could still show a debt as outstanding under those circumstances. Of course in theory that same debt would vanish after 6 years. However as age starts to get the better of you those '6 year' intervals mount up.

The actual display on CRA files would be interesting to see. In other words the changing from yellow to green with a digit showing months in arreas in boxes I woud think would continue. Probably remain at a final number and stay red.

To a potential lender a default or CCJ is as bad as each other. I would think a possible lender would read between the lines if the situation above occurred and decide to decline. Consumer affairs have so many 'grey' areas that they are not going to go away.

 

The Supreme Court (probably the most openly unfair ruling ever seen by the public) will no doubt open up another can of worms. I would tend to think that karma will catch up with all those concerned.

 

Michael

[blueotter]

Thanks captain,

I'm not sure what i can do regarding renting with a bad credit rating,i can't be the only one,perhaps i should start a thread ?

 

If my life is ruined to the extent that i can't even keep a roof over my head i may as well jack it all in.

This is the power of modern day capitalism and greed,despite the fact that i am in dispute over an agreement,the bank can default me and scupper my ability to exist. What's more even if i do come to an agreement they've still defaulted me ! can't win can i.

[captain2]

Hi I know its disgusting - the credit industry is the only one where they can ruin a persons future without a court hearing - especially now !

 

At least until that recent RBS court hearing there was always the chance you could get the file wiped -

 

thats why i changed my stance slightly in that making a token payment at least showed a payment. Then if agreements were found to be unenforceable, to challenge and use that as a bargaining chip in wiping file clean for small one off settlement -although I'm not sure they can or will be able to do that -

looking at posts on here that seems too much to expect unfortunately -

 

Its also true a private landlord's agent will credit score so you might need to try and register as voter somewhere else such as at a friends' and try to build a new file at new address - that will need time - or use the situation as tool to get housing association flat where credit file shouldn't be a problem ? I don't know where you live or your circumstances but there are in towns often nice association properties available in OK areas -

 

It should be a political solution as disaffected voters when the implications of adverse credit files being so much more widespread after this debacle will be a consideration.

 

There should be some procedure put in place to help consumers just as they helped the banks.

 

The politicians used OUR money to help the Banks so let them help us - for a change -

 

Maybe a protest and friendly picket outside the CRA agencies and the Banks doors would draw media attention to it I have suggested it on here before but failed to get sustainable support though it did draw a few supportive comments ---

[blueotter]

Thanks for the kind words,i shall see what happens,i'm waiting on mods to se eif i need to raise a thread to find a way round it,heopefully somebody who's been in this situation will be able to comment.

 

Th ridiculous thing about it is even if you reach an agreement there is still a deafult on your credit report.Fair enough if they're concerned you may actually try and obtain more credit but we're talking about a basic right and need to survive here,there should be a distinction made on the report.

 

Renting a house isn't borrowing,neither is getting a phone contract but they're subject to the same lending criteria as a credit card application.

[42man]

Hi Blue....I haven't seen any threads on this subject to the best of my knowledge, however you could possibly refuse to allow them to make a check on you....due to a 'dispute' or 'disputes' I do have a pal who did this and it was no problem....

[blueotter]

That's interesting thank you,i suppose another way roun dit would be to try and increase the deposit maybe