TimeOutCreditCards - The Story So Far (Version. 1 published Sunday 1st January 2017)

TimeOutCreditCards - The Story So Far (Version. 1 published Sunday 1st January 2017) is the evolving story of how six credit card companies after having charged interest rates of up to 48% for over 10 years were politely asked to reduce their rates (they had already received over four times their expense so that the cards could be paid off ) - All REFUSED

One is being used here by way of example.

After more than 10 years as a good payer our borrower asked SIX Credit Card companies to reduce their high rates (+48%) so they could be paid off, ALL REFUSED.

A revolving account is an account created by a lender to represent debts where the outstanding balance does not have to be paid in full every month by the borrower to the lender. The borrower may be required to make a minimum payment, based on the balance amount. However, the borrower normally has the discretion to pay the lender any amount between the minimum payment and the full balance. If the balance is not paid in full by the end of a monthly billing period, the remaining balance will roll over or "revolve" into the next month. Interest will be charged on that amount and added to the balance. The most common example of a revolving account is a CREDIT CARD.

Banks generally borrow the money they then lend to their customers. As they receive very low-interest loans from other firms, they may borrow as much as their customers require, while lending their capital to other borrowers at higher rates. If the card issuer charges 15% on money lent to users, and it costs 5% to borrow the money to lend, and the balance sits with the cardholder for a year, the issuer earns 10% on the loan. This 10% difference is the "net interest spread" and the 5% is the "interest expense".

The higher fees originally charged were claimed to be designed to recoup the card operator's overall business costs and to try to ensure that the credit card business as a whole generated a profit, rather than simply recovering the cost to the provider of the limit breach, which has been estimated as typically between £3–£4. Profiting from a customer's mistakes is arguably not permitted under UK common law, if the charges constitute penalties for breach of contract, or under the Unfair Terms in Consumer Contracts Regulations 1999.

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