"Credit card customers urged to take action over rising costs"

The high levels of bad credit card debt in the UK coupled with the effects of the credit crunch that has taken hold in the UK has resulted in a number of credit card providers hiking up various fees and charges over the past couple of months, with over 130 rate and fee hikes reported. In order to try and increase revenue from customers credit card providers have raised a range of fees and charges over recent weeks, and this includes cash withdrawal fees, foreign transaction charges, transfer fees, and standard variable interest rates.

The increases in rates, charges, and fees will cost some credit card customers dearly, and some credit card providers have gone as far as to double the interest rate charges on some customers’ accounts. This includes doubling interest rates on the accounts of some customers that have never missed a payment or made a late payment, and have managed their accounts well, which has outraged many cardholders. However, some experts have stated that cardholders do not have to put up with this treatment, and in many cases card providers are simply trying their luck by hiking up interest rates in this way.

Cardholders are now being urged to contact their credit card provider if they are not happy with the interest rate hike that has been applied to their card, as there is a possibility that the credit card company will then reduce the rate. One man said that the interest rate on his MBNA card was hiked up by a significant amount, but when he called and complained the card provider reduced the rate. However, the customer decided that he was still going to switch to another provider.

Industry professionals have stated that cardholders should ensure that they contact the provider in order to get the interest rate reduced, but if they are still not happy should look at transferring the balance to another card and closing down the account. One official said: ‘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.’