Credit card holders face interest rate hikes

Holders of credit cards in the UK are being hit with unexpected increases in interest rates, it has emerged.

Provider MBNA has been upping rates just as promotional periods are coming to an end, with some consumers faced with repayments of up to 34.9 per cent, having previously been paying no interest at all.

The US credit card company, which issues cards on behalf of several banks including Abbey, is also facing criticism for failing to include APR on statements, instead providing only the monthly rate.

A spokesman said those on the high rate of 34.9 represent a “tiny proportion” of the firm’s seven million UK customers, adding: “We have millions of customers who are at zero per cent and many more millions at other low interest rates.”

Last month Sainsbury’s Finance found that £8 million would be spent in summer sales this year, with 42 per cent of that expected to be charged to a credit card.

© Adfero Ltd

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