Unfair credit card deals could be challenged

Credit card holders have been told they may be entitled to challenge lenders' rate increases.

Rates are presently at their highest levels for 11 years, when the base rate of interest was six per cent, compared to the current figure of 0.5 per cent.

However, a report in the Daily Express has claimed that a change to the Consumer Credit Act two years ago means lenders are now outlawed from establishing an 'unfair relationship' with consumers.

Ian Ford, a consumer credit card lawyer, explained to the newspaper that Britons were once only able to contest credit charges if they were deemed to be extortionate.

However, he said: The onus has moved to a situation where it's up to the card provider to prove they are not being unfair and there appears to be a strong argument they are when the base rate is so low.

The Bank of England’s current base rate of 0.5 per cent is the lowest in history.