Over half a million credit card customers with online bank Egg could see their credit card borrowing rates soar by 5 per cent. The credit card company will aim to cease business with those who cannot afford the rate increase.
The bank, owned by banking institution Citigroup, approached customers last year following termination of over 150,000 ‘risky’ credit card accounts . The interest rate increase will vary in size depending on the customer. However, even good borrowers who pay off their balance each month may find increases.
Lord Mandelson has warned credit card companies from acting unfairly against borrowers, and this decision by Egg seems to be in direct defiance of this. Egg customers who do not wish to pay the rate must settle their balance in full.
Credit card company hikes interest
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Credit card company hikes interest
Thu, 12 Feb 2009
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