Your credit rating is reviewed by lenders which you are looking to borrow from, as well as lenders you have an agreement with who will monitor your credit rating on a routine basis whilst you are repaying. They apply what’s known as ‘rate-for-risk pricing policies’. Essentially this means that you are grouped based on your credit rating, therefore if you fall into a group the lender has decided to be of higher risk than previously, they will increase the interest rate for everyone in that group.
Even low risk customers that have made all their payments on time could suddenly face an increase in their interest rate. Therefore, it is crucial to maintain a good credit score even if you are not looking to borrow any more money.
Increased rates can be upsetting and it may make previously manageable debt suddenly unaffordable.
Although it is not the law, credit card providers have signed up to a code of conduct agreeing to give customers certain rights. It is important to be aware of these rights so you can check you’re being treated fairly. Visit www.citizensadvice.org.uk
Credit card companies have pledged:
If you feel you’ve been unfairly treated, complain directly to the lender first, if you’re not satisfied with their response or if the lender doesn’t respond to you within 8 weeks, you can then complain to the Financial Ombudsman Service.
In relation to your complaint you can also request a review from the European Online Dispute Resolution platform: http://ec.europa.eu/consumers/odr/.