Woolworths Financial Services sets it's own Repo Rate

I have been a client of Woolworths Financial Services for many years and have a personal loan facility with them. Earlier this year i took two loans from them, paying back monthly by debit order. When i checked my last statement i noticed that the interest rate charged had been increased by a full percent. I have received no notification of such an increase nor was i ever consulted on it.

I telephoned the Call Center to query the increase and was immediately told that it was due to the recent increase in the Repo rate. I pointed out to the consultant that the repo rate had only increased by 0.25% not 1%. She then told me that for loans of certain amounts the % charged was at the increased rate. I pointed out the the rate i was being charged previously was as per agreement with Woolworths Financial Services when i took the loan and they should not be increasing it without notifying or consulting me. I asked that a superior at WFS contact me and she promised that she would ensure that this happened. This conversation took place on the morning of 18th December 2018.

No one from WFS has bothered to call me back. I called again on Thursday 20th December 2018 and was told that no managers could speak to me at the time as they "were in a team meeting". I received another promise that a superior would phone but as i expected no one could be bothered and i have not received a response.

My view is that the loans taken were contracts between myself and WFS and they should not be changing the terms unilaterally. I do not refer to the Repo increase as it is standard that loan rates increase and decrease according to the same %'s as Repo rate changes. I do not believe it is legal or ethical that WFS changes interest rates without notifying or consulting me. I believe that it is dishonest that they blame the increase on the Repo rate. This means that if the repo rate increases 5% then WFS will hike their rates 20%.

I took the loans based on the % offered. I may not have accepted the offer at the higher rate and i certainly would not if i had known that they would increase the rates without notifying me or consulting me.

I cannot trust this Company anymore and have the full intention of paying off and closing my account with them. They do not even have the decency to contact me to attempt to resolve the matter. I fully intend to take up the matter with the Ombudsman.