I have received a letter from GE Money Home Finance stating that they are increasing their interest rates by 1.95% as this is "linked to how much it costs to borrow money".

I presume they mean the inter bank lending rate (libor). If this is the case, it has dropped from a peak of 6.27% in October to the current rate of just 3.91% ( www.thisismoney.co.uk/libor ). How can they justify this rate hike?

Maybe I am being cynical, but are they are just trying to recupperate the heavy fine they received earlier this year?

I thought the Government were insisting that all interest rate cuts should be passed on? Or are GE a law unto themselves?

If I can get a loan elsewhere I will, I am going to start looking, but under the current climate this may be difficult.

Is there anything we can do about this injustice? It seems to me they are cashing in on peoples financial predicament at the moment knowing most people will find it hard to "move" their loan.

If you are in a "financial predicament", you should do what you can to avoid any credit.

I'm not in a "financial preicament" as you say. I just feel this is unjust. And yes, I know I could get credit elsewhere to replace this loan, but what about the other people who cannot.

What I said was under the current climate it is diffcult to get loans, if you read all the press.

Do not judge people just because they are commenting on here.

Apologies. No offence intended. The term "financila predicament" wasn't my choice.

My partner works for GE Money and at the moment stands to loose his job like 65% of his collegues. I know he was told that no rate cuts would be passed on to new customers by increasing their rates by what ever the BOE rate cut was to rebalance their books. I couldnt believe it myself when he told me but as far as I'm aware there is no law which prevents them for doing this. Although if you are an existing customer on a tracker product they should pass that on.