Credit cardholders can take action over rising interest rates : Credit Card Guide

Credit cardholders can take action over rising interest rates

Over recent weeks it has been reported that many credit card providers have pushed up various fees and charges on credit cards in order to make more money from the customers.

Amongst the charges and fees that have been hiked up over the past couple of months by many card companies are foreign transactions fees, transfer fees, and cash withdrawal fees. A number of credit card companies have gone a step further and raised their standard variable rates by as much as 100% on some accounts, even in cases where the customer has never missed or made a late repayments and has managed the account well.

Experts are now stating that customers that have seen their standard variable interest rate rocket should complain to the credit card provider, as there is a good chance that the provider will reduce the interest rate.

Many card companies are trying their luck by inflating interest rates in this way, but customers may be able to get the rate reduced by picking up the phone and making a complaint. One customer saw his MBNA card interest rate rocket to 34.9% from 15.9%. After he complained the bank reduced the rate to 21.9%. However, he still decided to close the account and move to another provider.

Any customers that have been affected by card providers hiking up interest rates by huge amounts should ensure that they contact the provider and try to get the rate reduced. Alternatively, consumers are advised to close the account and transfer their balance to another card with a different provider.

One industry expert stated: 'Firms will look to increase revenue if they are not making enough money. You don't have to put up with this. If you don't like your provider, complain and switch.'

Tom Smith
26th November 2007

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