Credit card rate hike from Halifax

 

April 9, 2008

Following in the footsteps of a number of other credit card providers, the Halifax has recently announced that it is hiking up the interest rate on its credit card, which means that credit card customers could be left facing far higher charges on their balances. It is thought that some customers will face an interest rate hike of up to 5% as part of the move. Over recent months a number of credit card providers have hiked up their interest rates, fees, and charges, with many appearing to pass on the cost of capped penalties and the cost incurred as a result of the credit crunch to their customers through these increased fees and charges.

A number of credit card firms have gone one step further recently, with some slashing credit limits on their customers’ accounts and others withdrawing customers’ credit card facilities altogether. Following the recent rate hike from the Halifax an official from the bank stated: ‘We periodically review the rates our customers are on to ensure we continue to price in line with the market.’ However, officials have stated that in some cases customers could find that they can get the rate hike overturned by the bank.

One Halifax credit card customers said that his credit card interest rate went up by 5%, taking the rate from 10.9% to 15.9%. However, he decided that rather than simply accepting the rate hike he would challenge it with the bank. He added that he had been a customer with the Halifax for around eight years, had a good credit rating, and had not missed any repayments on his credit card.

Based on these circumstances the Halifax then agreed to drop the customer’s interest rate back down to the original rate of 10.9%. Officials have been urging consumers that have been affected by such rate hikes, and who have a good repayment history and a long customer relationship with the bank, to contact their lender and challenge any rate hike, as there is a chance that this could be reduced.

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