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Credit Card Customers Face Higher Costs

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http://www.telegraph.co.uk/finance/personalfinance/8445943/Credit-card-customers-face-higher-costs.html

High street bank Halifax announced that it is linking the rate that credit card holders pay to Bank of England interest rates.

It means that a typical Halifax credit card rate of 18 per cent will automatically increase by 0.25 per cent if the Bank Rate increases by that amount.

The controversial move has been condemned by industry experts because the Bank Rate is at a historic low of just 0.5 per cent and is expected to rise to 2 per cent by the end of next year.

It will be a fresh blow to struggling households who have seen their budgets stretched to the limit by the rising cost of living.

Is Lloyds going to do the same?

This is a stroke of genius by the banks if they all follow suit. It's certainly one way to keep the profit margins.

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Yep, CC rate shouldnt be aproblem as you shouldnt have to rely on it (too may people do which s a UK problem not an individual one).

I have a single fixed credit card at 6.4% so feeling a bit smug

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I've posted here about rising interest rates and minimum payments on credit cards and store accounts many times.

These cards already have rates that are absurdly high compared to other lending and those rates have been creeping up even without a base rate rise.

A move like this followed by base rate rises will ramp up the number of insolvencies, that's for sure.

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Thinking about it this sounds more like back door pressure on the BoE not to raise rates. If they show more people being tied to base rates for their payments they are less likly to raise the rates = happy bankers

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Thinking about it this sounds more like back door pressure on the BoE not to raise rates. If they show more people being tied to base rates for their payments they are less likly to raise the rates = happy bankers

Yep.

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Good business, pay depositors about 1%, charge 18%. :D

...well how do you pay the bonuses...?....these people need to be culled by legislation ....they are not Bankers ...they are back street lenders and are playing a dangerous game ...this government needs to tackle them big time more so this lot who are owned by the taxpayer....they simply don't deserve to exist in business...... <_<

Edited by South Lorne

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As long as inflation is above target, then sure, interest rates will need to increase to compensate in favour of the lender.

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...well how do you pay the bonuses...?....these people need to be culled by legislation ....they are not Bankers ...they are back street lenders and are playing a dangerous game ...this government needs to tackle them big time more so this lot who are owned by the taxpayer....they simply don't deserve to exist in business...... <_<

Correct

Recent tv documentry about the U.S.A. and their CC , they said the CC companies had put the back street loan sharks out of bussiness.

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Is there any limit to how far people can be pushed in this country before it all kicks off. How can these thieves be allowed to perform such actions without widespread anger.

Its almost as if the people of this country now just sleepwalk into being ripped off in every possible way without protest.

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http://www.telegraph.co.uk/finance/personalfinance/8445943/Credit-card-customers-face-higher-costs.html

Is Lloyds going to do the same?

This is a stroke of genius by the banks if they all follow suit. It's certainly one way to keep the profit margins.

This is very good news to people on tracker mortgages. It means that if the base rate is raised the rates will be passed on (and some). If the rates weren't passed on to the consumer then more rises may be necessary.

In any event I don't really see rising boe rates as much of an issue.

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Is there any limit to how far people can be pushed in this country before it all kicks off. How can these thieves be allowed to perform such actions without widespread anger.

Its almost as if the people of this country now just sleepwalk into being ripped off in every possible way without protest.

I wonder if one reason is the mental disconnect between using a credit card (either in a shop or online) and spending money. I pay mine off totally every month, so it costs me nowt, but even though I keep an eye on it it doesn't feel like spending. At least, not like cash does (or should that now be "like cash used to"?).

Just a thought.

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Is there any limit to how far people can be pushed in this country before it all kicks off. How can these thieves be allowed to perform such actions without widespread anger.

Its almost as if the people of this country now just sleepwalk into being ripped off in every possible way without protest.

Nothing's changed. When we moved back here from the States my dad never grew tired of pointing out that we now lived in the land of the monumental day in, day out rip off.

Compared to the USA, value for money was non-existent.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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