MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Tim Leonard

Tim Leonard

Finance Expert
Published: 26/11/2008

Credit card companies are to be urged to lower interest rates in order to provide relief for consumers.

A summit is being held today following Moneyfacts.co.uk's findings that the average rate is more than 17 per cent, despite the Bank of England reducing the official base rate to three per cent.

Providers will meet with business secretary Peter Mandelson as well as consumer affairs minister Gareth Thomas, who will ask them to reduce their charges.

Mr Thomas explained that a set of principles will be sought, encouraging a continuation of lending while asking that borrowers are treated fairly.

"The government is deeply concerned that borrowers aren't getting a fair deal. That's why we've taken swift action to bring the industry in to look at how costs are being applied to people's existing debts," he said.

Earlier this month prime minister Gordon Brown expressed concern, particularly over one store card that was charging 200 per cent interest and a provider that had increased rates by ten per cent overnight.

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