FOR IMMEDIATE RELEASE
London, UK, 20th August: The cost of borrowing on a credit card has increased despite the historically low interest rate, according to new research.
The Bank of England’s latest Trends in Lending report has revealed that the average interest rate on a credit card is now 12.38 per cent, compared to 12.08 per cent in June 2008.
Credit card providers were therefore charging seven per cent more than the interest rate two years ago, but are now charging nearly 12 per cent more than the current 0.5 base rate.
Lenders also receive a significant profit with personal loans as the current margin between the base rate and loan rates is six per cent compared to 4.4 per cent in June 2008.
Louisa Parker, head of research and policy at the Money Advice Trust, said: “The cost of borrowing on a credit card has remained entirely decoupled from the Bank of England base rate, meaning the margins that credit card companies are making have increased significantly over the last couple of years.
“This also means many consumers will have seen little or no benefit from the low base rate.”
Ms Parker advised lenders to consider the base rate when pricing their products.
“Credit card companies have been doing brisk business even though the interest rates have fallen. This proves that people do not find Bank of England’s base rate to be meaningful anymore. Many are unaware of the high interest rates and fall victims to the hidden clauses of the lenders” says financial analyst from PPI Claim Company.co.uk Charles Baker.
“In your best interest you should hire the services of a PPI Claims expert who have expertise in the Financial Service Authority to help you with the interest rates on your credit card. The job when handled by professionals will yield you better results”
“As a consumer you will need the services of a good PPI Claims expert with expertise in Financial Service Authority to help you pay the actual interest rate due. This will make sure that the process is hassle free for you as a consumer. To know more about PPI Claims you can log on to http://www.ppiclaimcompany.co.uk/ where you will also get advice on your PPI Claims and can also use to the PPI Claims Estimator to calculate your PPI.
Contact Details:
Belmont Thornton
Suite 2, Unit 25
The Coda Center
Munster Road
City: London
Post Code: SW6 6AW
Country: United Kingdom
Tel: 08455 26 26 26, 0207 717 9447
Website: http://www.ppiclaimcompany.co.uk/
E-mail: [email protected]
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