UK banks plan to hike cost of credit card borrowing

Industry News | 15/10/20

Banks are poised to increase the cost of credit card borrowing in the runup to Christmas, leading to fears that the UK’s poorest households will be priced out of vital credit as the furlough scheme ends and unemployment begins to climb.

The Bank of England said its latest industry survey found that banks raised the cost ofcredit cards in the third quarter and planned to continue increasing average interest rates in the fourth.

A majority of lenders are also expected to restrict loan products in the fourth quarter, though not by as much as in the third, further limiting access to loans as the second wave of the coronavirus spreads across the UK.

Source: The Guardian