Credit card rate rises hit one in three Brits

30/07/2008

Around one-third of UK credit card customers have been hit by increased rates over the past year, research from Moneysupermarket.com has found.

According to the price comparison website, mainstream providers including Capital One, MBNA and Barclaycard have all imposed the hikes.

Egg was found to be a particular offender, responsible for over ten per cent of increases despite retaining a market share of less than five per cent.

MBNA, however, has imposed the biggest increases, with some of its customers shifted to AERs of almost 35 per cent.

Commenting on the news, EuroDebt director Kevin Still said: "It is not clear how of the actions of significantly increasing interest rates on credit card transactions sits well with 'treating customers fairly'.

"The message appears to be don't borrow more money, however, in our experience many consumers reliant on available credit to keep their heads above the water don't read the small print and just look at the available balance on the statement each month."

Steve Wiley at moneysupermarket.com added: "Increasing the interest on purchases will only make those rising food, fuel and mortgage bills harder to pay, and lengthen the time it takes people to clear their debts.

"Credit card companies should play fairer with customers."

Tags; Debt Management and Banking, Recent Graduate Debt,

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