CC % over 30% - is it extortionate?

Doublespresso

My mate took advantage of a 0% Balance transfer but ever since coming off the promo period a while ago, the CC company have regularly crept up his interest rate, (as well as his credit limit!) it is now over 30%.
He's never missed a payment and has a good record.

It occurred to me that a CC company can increase the % unilaterally, to whatever they want at will.. is this legal?
Do consumers have any rights in this respect?

At what level of % (if at all) do they become loan sharks?

I'd appreciate replies on the subject of how much can a CC legally charge, and whether consumers have any rights in this respect, thanks.

97trophy

Doublespresso wrote: »

It occurred to me that a CC company can increase the % unilaterally, to whatever they want at will.. is this legal?

Do consumers have any rights in this respect?

I am sorry to say that a CC company can do this. Its in the contract that no one reads - yet everyone signs.

CLAPTON

sorry to say

consumer has the right to repay the debt and so avoid all interest
they have the right to transfer it elsewhere if some one else will accept the debt
interst rates of over 100% have been deemed legal.

as the chairman of barclays said to the select committee, he wouldn't let his children borrow money on credit cards.