Santander - 2 x Rate Hikes In 2 Months

[yours-debtfully]

Hi everyone,

I hope someone can assure me that I'm not going mad.

Santander increased the rate on my card to 29% in Nov last year. I didn't reject it 'cos I didn't get notification (initial letter then a reminder), otherwise I would have. I got one for the previous Jan, I filed it with my statements, so I know what they are and what they look like. I noticed the 29% rate on my statement in April so I investigated and found that they'd increased my rate as follows;

Sep '09 - account opened with 0% on purchases 'til Jan '10 & 0% balance transfer until Nov '10
Jan '10 - 15.7%
Dec '10 - 15.9%
Jan '11 - 21.9%
Nov '11 - 29.9%
(Aug '12 - 34.9% notified of since)

I'm sure the eagle eyed amongst you would have spotted that there were 2 rate rises within 6 months of each other (Dec '10 & Jan '11) which I believe breaches APACS principals. I rang their CS and asked for a reduction in rate. No, write to us. I fired off a letter to them rejecting the last 29.9% rate hike on the basis that I was not notified but mainly as they had breached the principals by increasing the rate twice in 6 months. I ended by stating that I'd accept a rate reversion back to 21.9% in line with other cards although I believed I could have asked for 15.9%.

They received the letter 13th April. I received no reply by 14th June so complained to the Ombudsmen. The Ombudsman acknowledged my complaint 19th June.

In the meantime I received another rate hike notification to a whopping 34.9% to take effect in Aug.

On 26th June I received a letter that they'd reduced my limit by £140. Considering the limits over £6500 seems pretty pointless to me.

On 30th June I sent another letter to them rejecting the 34.9% hike and complaining again of breach and also of no response to first letter and advising I'd already writted to FO.

Yesterday, 5th July, I received a response to my first letter dated 28th June - yeah right - I've still got the envelope at home I'll check the post mark! It is the most sick-making 2 pages of bilge I have ever had the misfortune to read. They apologise profusely for the time (almost 3 months) taken to reply, they claim no responsibilty for non receipt of the notification - not their problem once posted! They offer no justification apart from the usual shite as to why they increased the rate so much in the first place. Worse of all though, the categorically deny the breach making absolutely no reference to the Dec '10 rate increase just like it didn't happen.

So, just to make sure I'm right about this, the rate I am referring to is printed on the back of each of my statements represented as a monthly rate (I haven't bothered to include the rate on cash withdrawals).

Nov '10 it says "Purchases 1.22%"
Dec '10 it says "Purchases 1.24%"
Jan '11 it says "purchases 1.66%"

That's 2 rate rises in 2 months is it not? Or am I missing something here?

FYI - Whilst the card's maxed out at the moment, and I'm only maiking minimum payments I've never missed a payment and have had only 1 charge for going over my limit one time.

Hope someone can help with this and with what to do next.

Much thanks,

yours-debtfully

[oscar]

Re: Santander - 2 x Rate Hikes In 2 Months

So, just to make sure I'm right about this, the rate I am referring to is printed on the back of each of my statements represented as a monthly rate (I haven't bothered to include the rate on cash withdrawals).

Nov '10 it says "Purchases 1.22%"
Dec '10 it says "Purchases 1.24%"
Jan '11 it says "purchases 1.66%"

That's 2 rate rises in 2 months is it not? Or am I missing something here?


Hope someone can help with this and with what to do next.

Much thanks,

yours-debtfully

I think the difference in rates is just an anomoly due to the number of days in the cylce. The two rates, on an APR basis work out at 15.7% and 15.9% - so not a really major difference.

This only applies to the Nov and Dec rates of coarse as in January this rises to 21.9%

[yours-debtfully]

Re: Santander - 2 x Rate Hikes In 2 Months

Thanks Oscar, when you say cycle, do you mean the varying number of days in each month?

It stayed at 1.22% right through from Jan '10 to Nov '10 then rose to 1.24% in Dec '10 and then 1.66% in Jan'11.

[oscar]

Re: Santander - 2 x Rate Hikes In 2 Months

Thanks Oscar, when you say cycle, do you mean the varying number of days in each month?

It stayed at 1.22% right through from Jan '10 to Nov '10 then rose to 1.24% in Dec '10 and then 1.66% in Jan'11.

Yes, the variation in the days. It should remain static, but the amount is extremely small - obviously dependant on your balance.

Either way, you should have recevied notification for January.

[yours-debtfully]

Re: Santander - 2 x Rate Hikes In 2 Months

I did get notification for the Jan '11 increase, it's one later in 2011 that I didn't and am complaining about (and the one since).

So the 1.22% to 1.24% to 1.66% in 2 months is nothing I can use against them then?

Ta, yours-debtfully