Credit Cards and Increasing their standard interest rates

penny4ur

Since May, I am aware of 2 credit card companies writting to their customers advising of their "difficult decision" to some rates due to the quote "steady worsening on the economic climate making it necessary to review customer accounts".

The rates being increased are along the lines of from 15.9% p.a variable for purchases for instance to 22.94% p.a variable.

This is surely not right and with banks reducing interest rates on mortgages, is it right that on the other hand they can increase their rates in such a way on the likes of credit cards. Surely the rates should be capped on credit cards should be capped. :mad:

jweb2k

Read Martin's latest blog post... one of the first questions he answers!!!!!!

penny4ur

Thank you jweb2k. Read with interest and also learnt that more and more credit card providers seem to be going down the same route. makes you think, do they want the business or not.

PNPSUKNET

Credit cards are there to make money though, and with people paying in full they are not making as much.