Lenders are 'fuelling problem of credit card debt'
Lenders are 'fuelling problem of credit card debt'
Wednesday 23rd July 2008
Steve Willey, head of credit cards at moneysupermarket.com, accused the firms of behaving irresponsibly after research conducted by the site found that three in ten card companies have raised interest rates over the last 12 months.
Mr Willey said that this will "only exacerbate the debt problem in this country" and will pile further pressure on consumers who are already struggling with higher food and energy bills.
He added: "Credit card companies should play fairer with customers. People, for example, about to come off introductory zero per cent deals and expecting to be paying 15.9 per cent have instead found themselves facing an APR of 27.9 per cent, which is outrageous."
The impact of higher repayments on credit card debt, coupled with the soaring cost of living, is believed to have been one of the principal factors behind a 1.7 per cent rise in the number of people taking out an Individual Voluntary Arrangement (IVA) during the first quarter of the year.
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