Are banks legally obliged to inform of interest rates?

21firefly84

Hi,

I had a student account in 2004, which i stopped using when i'd spent the overdraft!

An agreement was set up to repay this at £20 per month back in 204 - the amount to be repaid was £1330.00

I was 18 at the time and loking through the paper work I can see no notification of the interest rate.

I have received no communication from the bank since May 2005, and they say that they were not obliged to send out statements until October of this year.

However, I received a phone call off them the other day saying they need to increase my payment per month, and if I refuse they will take action against me as they can no longer accept the £20 per month.

I have never missed a payment and in total have paid £920. When I asked what the remaining balance was - i was told it was £1100.00.

This implies that the interest was accruing at approximately 37%

Should the bank have informed me of the interest rate in writing and of any subsequent rate changes?

Any help on this would be appreciated.

Thanks