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Catalogue companies hiking interest


Recently we become aware of a Catalogue company writing to customers informing them that due to an increase in risk the customer was going to see their Interest rate increased by around 10%.

Accept the rate hike or pay the balance in full

JD Williams told the customer it had two choices, Accept this rate hike or pay the full balance owed.

Currently, this customer has a balance of £1500 with a credit limit of £3000.

Credit Card companies who hike interest rates offer the option to continue at the current interest rate with a view to closing the account once the balance is £0, however it appears that JD Williams aren't offering this.

Credit 4 Everyone have seen a letter telling the customer that they have to accept this rate hike within 28 days as it's buried in their terms and conditions.

Jd Williams – Responsible lending?

If the customer has increased their risk of borrowing, why have JD Williams not reduced the credit limit ? It seems very strange that a Customer with an increased risk will still be allowed to spend money with them.

FCA currently looking at home shopping lending

It's no wonder the FCA are looking at Catalogue companies with this kind of behaviour.

If you do receive such a letter, talk to your bank and see if they can help you with a small loan or credit card, or take financial advice, I am sure you could challenge a rate hike with a Catalogue company who threaten you must accept a rate hike or pay the balance in full.

It goes totally against the responsible lending criteria.

 




Dad of 7, including Autistic Twins, first hand experience in Credit problems following the challenges faced with having Autistic children. (Unable to work due to supporting their needs, My credit rating became what can only be described as wrecked) Using my own experience, Credit 4 Everyone was born. A website dedicated to the rebuilding of a UK credit rating. The site was born providing the struggles in getting accepted and as things improved, the challenges one faces in maintaining a good credit rating. On this website you will find information regarding Pay monthly Credit catalogues, buy now pay later, mobile phone contracts for bad credit, current account options when your credit rating stops you getting even the most basic of services and personal loans/car finance. I will share my own experience which shows you how I built a credit rating with an Experian credit score of 120 and Equifax of 90 to a Credit rating both rated as Good in 2 years. How you can rebuild your credit rating, the companies that will help you on the journey and how things can improve. About the website Pay Monthly Catalogues with Credit, Buy it now pay later, Guaranteed Mobile phone contracts and Guaranteed no credit check bank accounts. Credit 4 Everyone specialise in helping people with bad credit get the credit they need. We offer Financial products and services for everyone and work hard to review products, our aim is in Helping you get accepted with our helpful hints and tips.

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