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Posted: Sat May 31, 2008 3:09 pm
by KAMRAN
Hi All,
Just thought i would let you guys know i recieved a letter today from Citi Bank advising my as i have missed a payment on my account they are going to increase my APR from 16.9% to 32.99%......
I am in an IVA now so they can do what they want with their APR..... but how bad is this i phoned them to let them know i was finding it hard to make payments and i am looking into an iva (which has now been approved)and they have since decided to shoot by APR to 32.99%
Is that what they call trating customers in a fair way!!!!!
Has any one else had anything like this????
Posted: Sat May 31, 2008 3:12 pm
by kallis3
Kamran, that is terrible! You can't make your payments so hey! let's make it even more difficult for you to clear your debt! That's not very responsible of them!
At least you have the protection of the IVA. I think I would be tempted to phone them and once again tell them of your Iva status.
Posted: Sat May 31, 2008 3:27 pm
by bigpete
Kamran: "as i have missed a payment on my account they are going to increase my APR from 16.9% to 32.99%"
One wonders who the thicko's are who run these outfits, obviously if the person can't pay their rip-off rates, they certainly won't with it at 32.99% - we had a similar thing with citi bank - pre Trust Deed..
But don't forget folks (well most of you) : "With regard to the query about what happens to the money which is written off, this is set against profits generated by the bank and may often be insured - so the losses actually attributed to the lender can be minimal."
So what has citi bank, et el got to loose? - disgusting..
Posted: Sat May 31, 2008 3:36 pm
by kallis3
Minimal or not, they don't want to make any losses at all. Perhaps their insurance premiums are too high????????
None of my creditors did that though. If you miss another payment, do they put the apr up again?????????
Posted: Sat May 31, 2008 3:46 pm
by KAMRAN
not sure but would not suprise me if they did
Posted: Sat May 31, 2008 4:00 pm
by plasticdaft
And after the 32.99% APR is surpassed,a limb or kidney may be used as suitable payment!!!
Dick Turpin methinks!!
Posted: Sat May 31, 2008 4:03 pm
by kallis3
If you managed to catch up with your payments, would they drop the APR back down?
You could spend the rest of your life just paying the bare minimum to remain where you are (if you follow my meaning!)
Posted: Sat May 31, 2008 4:08 pm
by Dominic
Good god what kidney did they offer to sell for you too?
Posted: Sat May 31, 2008 6:03 pm
by TheMatrix
Don't they realise that all interest and charges have to be frozen once you are in a IVA.
Posted: Sat May 31, 2008 6:10 pm
by kallis3
I don't think they do. On the day mine was accepted, I had a call from Mercers. Now I know they didn't know about the IVA, but even when I told them, their next question was to ask when I was going to make a payment! I had to repeat that I was in an IVA and they couldn't ask for money anymore!
Posted: Sat May 31, 2008 6:11 pm
by kallis3
I don't think they do. On the day mine was accepted, I had a call from Mercers. Now I know they didn't know about the IVA, but even when I told them, their next question was to ask when I was going to make a payment! I had to repeat that I was in an IVA and they couldn't ask for money anymore!
Posted: Sat May 31, 2008 7:39 pm
by Soulgrowth
So they are charging themselves money then aren't they!! I had a few of these back in the days when my IVA went through ... it really made laugh.
Debbie
Posted: Sat May 31, 2008 7:44 pm
by Adam Davies
Hi
BigPete sums it up beautifully
You are in difficulty so the banks answer is to double the APR ???
It could well be that they want to increase the debt as much as possible in the shortest time possible therefore maximizing the banks return if and when an IVA is agreed
Regards