Abacus Daily Debt News

Increasing APR rates “disappointing”

Credit card companies putting up their annual percentage rates (APR) despite the Bank of England cutting its base rate to record lows is unfair to the consumer, suggests one financial organisation.

Saga Finance chief executive Roger Ramsden commented on recent research conducted by Moneyfacts.co.uk that found companies are continuing to put their charges up.

"The current difficult economic climate means that customers are in greater need for competitive deals to help maximise their financial resources," he said.

In the last six months a dozen firms had hiked rates, which was "disappointing", he added.

Debt advice seekers should look to challenge any increase in rates on their cards, consumer body Which? revealed this month.

Martyn Saville, a senior researcher at the organisation, urged those with credit card debt to consider cancelling their account if there was a rise in charges, which would allow them to pay the money back at the previous rate.

By Francis Finch