'Better access' to low interest credit card deals needed

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The Financial Services Authority needs to take steps to improve access to low interest credit card deals, it has been claimed.

Writing for the Financial Times Adviser, Hal Austin, the publication's senior editor, said that the regulator needs to "come down" on lenders that charge "extortionate" interest on credit and store cards and make sure that there is better access to low interest deals.

With the base interest rate having stood at 0.5 per cent since March 2009 and looking likely to stay below one per cent for a while, Mr Austin stated that there is no excuse to charge borrowers up to 28 per cent APR.

"Treating customers fairly means these rates should be in single figures. The excuse that they are factoring in defaults does not wash," he concluded.

Earlier this month, research by PricewaterhouseCoopers highlighted that credit card providers are likely to increase their interest rates and introduce annual fees in the near future.

The firm stated that difficult trading conditions and a surge in bad debts are behind the plans.

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Tags: credit card providers , credit card deals , interest credit card , base interest rate , interest deals , bad debts , low interest credit card , store cards , financial times , pricewaterhousecoopers , borrowers , adviser , excuse , lenders , interest rates , financial services authority ,

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2009-11-27 13:27:52 © Moneyextra.com