Credit cards Updated:
Gordon Brown has expressed concern over the rising interest rates that credit card holders are facing.
The prime minister urged credit card companies to adopt a more responsible approach to their lending, as research showed the average rate to be rising.
A spokesman said Mr Brown was particularly alarmed by a store card that is charging 200 per cent, as well as the example of one credit card provider increasing rates by ten per cent overnight.
Speaking yesterday, the premier remarked: "I think we have got to bring the credit card industry in to talk to them to join with us in establishing clear principles to apply to the costs people face on their existing debts."
Despite the Bank of England's decision to cut the official base rate by 1.5 per cent last week, a study of 240 cards by banking research group Defaqto showed credit card rates to be increasing.
The average figure is now at 17.6 per cent, having been 17.2 per cent six months ago.
David Kuo, head of personal finance at Fool.co.uk, warned this week that store cards may be difficult to obtain this Christmas.
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