Not upheld: inadequate disclosure of reasons for interest rate increase complaint against Lloyds Bank PLC

Decision detail

Summary

Mr A complained that Lloyds Bank increased his credit card interest rate from 24.27% to 25.94% without providing specific enough reasons for the decision. Lloyds provided 60 days' notice via letter dated 14 July 2025, quantified the impact (£1.14 more per month per £1,000 balance), and attached a guide explaining that the increase reflected how Mr A managed his accounts and his financial situation based on credit reference agency information. The ombudsman found that Lloyds complied with its contractual terms, provided clear and fair information, and gave Mr A the option to pay off his balance at the lower rate. The complaint was not upheld as the ombudsman determined Lloyds provided sufficient detail and acted within its regulatory duties.

The Ombudsman's reasoning

The ombudsman found that Lloyds complied with its contractual obligations by providing 60 days' notice and clear information about the monetary impact of the rate increase. The attached guide provided sufficient detail about the factors considered (account management, credit reference agency information, and financial situation), and Mr A could access his credit report for free to understand what may have triggered the increase. The ombudsman concluded that Lloyds gave specific enough information and acted within its regulatory duties and contractual terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website