Credit card increases can be questioned by borrowers

Many credit card users have seen the interest rates on their credit cards go up over the past year, and even though the base interest rate has been falling the borrowing rates on many credit cards, along with fees and charges, have been rising, leaving consumers with higher bills and increasing debts to deal with. This is something that has outraged many campaigners and consumers.

However, some industry officials have stated that consumers need to start fighting back against these charged if the credit card company appears to be increasing their credit card rates without any justifiable reason. Consumers are advised to contact their card provider and find out why the rate has been increased. In many cases the consumer will be able to get the lender to reduce the rate back to its original level.

An official from the Financial Ombudsman Service stated: ‘This is something we are starting to see increasingly more of. What we would want to see is an individual risk assessment of that customer, not some vague statement as to why lending money is more dangerous. Firms are frequently unable to produce this.’

Many credit card customers have seen their rates rise, and this has come despite the fact that the base rate has plummeted. There are also fewer credit cards on the market, giving consumers less choice about the cards that they opt for.