- Tuesday, 9 February 2010More people may be seeking
IVA help amid fears that credit card holders could be faced with impending interest rate hikes.
US lender Capital One has informed thousands of credit card customers that the interest rate on their existing debt is set to double - increasing from 8.01 to 15.31 per cent, reports the Times.
It has blamed the "poor economic" environment as the catalyst for the dramatic increase, doing little to allay consumers' fears that more lenders will follow suit.
Spokesperson for financial information firm Defaqto David Black told the news provider: "There is little appetite for more unsecured lending, including credit cards, among providers at the moment.
"In the coming months we will see interest rates rise, more cards with annual fees and shorter introductory offers for new customers."
The Daily Mail recently reported that average credit card interest rose from 15.89 to 16.28 per cent in December, bringing the figure to its highest level in four years.
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