Santander Credit Card - Notice of Interest Increase (Nearly Double)

[nuclearshark]

Hi All,

 

I have received a letter from Santander Cards stating that they are going to increase my Interest Rates as follows:

 

Purchases: 17.9% - 29.9%

Balance Transfers: 17.9% - 29.9%

Cash Advance: 27.9% - 29.9%

 

 

Needless to say I was rather appalled at this. They have stated in the letter that I may close the account and repay over a reasonable time period at the current interest rates.

 

What would be the best course of action here?

 

I don't particularly want to use a card with an interest rate at that percentage APR. I have another credit card I can use so I am more than happy to jump ship on this one. (Don't particularly want to Balance Transfer though, would rather come to a sensible repayment arrangement)

 

Cheers,

 

NukeShark.

[Conniff]

How much is outstanding on the Santander card ?

[nuclearshark]

£500.00

 

Not behind with any payments. Although admittedly a couple have been late in the past. Also a couple of overlimits caused by them applying Interest or Late Payment Charges. Will look to challenge these also. I had a similar problem with Interest and Charges causing me to go overlimit from Barclaycard which they refunded all charges in a phonecall

Edited May 28, 2013 by nuclearshark
Changed Amount to include decimal place in case a typo was assumed!

[citizenB]

I would close the account now - you are entitled to continue making payments in the same way you have been - minimum payment on receipt of statement. At the current rate of interest.

 

However, it will be in your interest to make every attempt to make payments in excess of the statement value to dispose of it quickly and to avoid as much interest as you can.