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Bank of England Cuts and Egg credit cards

on the same day that it was announced interest rates were being cut (6th Dec), Egg sent me an email to advise me that my credit card APR was being put up by 2 percent to 19.9%.

Can they do this? :confused:

Comments

  • phlash
    phlash Posts: 883 Forumite
    500 Posts
    of course - they are not obliged to lower their rates. They are a business, and there is this thing called the credit cruch around.
    I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
    That also means I cannot share in any profits from any decisions made!;)
  • MABLE
    MABLE Posts: 4,249 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I received an email today advising changes to their terms and conditions but so nothing regarding my APR. At this moment in time it is 17.9%
  • Credit cards arent linked to the base rate, so yes, they can I'm afraid
  • IMO the base rate cut will have no effect on credit card pricing (ie they will continue to rise for most people in the short term) or mortgage rates.
    The banks will use the increased rates on cards to fill in losses caused by the sub prime losses.
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