Credit card issuers raise rates

Many credit card firms have increased their interest rates in the last three months to offset enforced cuts in their default fees, a report shows.

Financial data firm Moneyfacts said 19 leading credit card issuers have put up their charges.

Earlier this year, the Office of Fair Trading (OFT) told them to halve their typical default fees to £12.

These are the charges users have to pay for failing to meet the minimum monthly payment on their credit card.

The list of credit card companies that have increased some of their charges includes not only American Express and Barclaycard, but also most of the UK’s biggest banks, such as the Halifax, HSBC, NatWest and Lloyds TSB, plus a host of other major card issuers.

BBC NEWS | Business | Credit card issuers raise rates

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