Tuesday 9th of June 2009
Credit card customers are being exploited because companies know there are not many options available in the current climate, according to an expert.
Moneyfacts.co.uk findings have indicated significant increases in interest rates over the last two years.
Commenting on this, senior researcher at Which? Martyn Saville noted that attractive headline rates are being advertised, but customers are actually being charged more.
In addition, borrowers could find themselves in need of non-borrowing solutions such as debt management plans in the future, as he explained that charges are being increased "a year down the line".
According to Mr Saville, lenders "are exploiting [customers] because they know that there aren’t as many options in terms of other places to borrow at the moment".
The Moneyfacts.co.uk survey indicated that the average rate is now nearly two percentage points higher than a year ago.
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- Britons 'changing attitudes' towards debt management
- Homeowners 'more concerned with debt management'
- Low interest rate 'contributing to debt management efforts'
- Debt management growing in importance, survey finds
- Credit card interest costing billions, study shows
