MBNA increase credit card interest rates

MBNA, one of UK’s largest credit card providers has shocked its customers by announcing an interest rate increase.

Their plan is to increase rates to 34.9% and cause further mayhem for British consumers, other companies are believed to be following this new trend.

Moneysupermarket .com the number one price comparison website suggested that a third of all cardholders have seen their APR increase in the last year. Cardholders currently with Egg, Capital One, Lloyds TSB and Barclaycard have been seen to be a victim of increase.

A spokesman from MBNA commented; "There are millions of customers who are at 0% and many more millions at other low interest rates, Our average rate is around 15%."

He added; "We disclose monthly rates on statements because this helps our customers calculate their monthly interest. Whenever we make changes to a customer's account, we always give written notice. The APR for purchases is clearly shown on this notification, so we do not believe we are trying to mislead customers."