Banks are Charging 'Highest Interest Rate on Personal Loans in a Decade'

Banks are turning the screw on customers with the highest interest rate on personal loans for almost a decade, giving them record profit margins.
The rates have soared to an average of 12.4per cent despite the fact the Bank of England base rate remains at a 300 year low of 0.5 per cent.

The last time personal loans cost this much was in 2001 when the base rate was a much higher 6 per cent. The figures, combined with evidence of sky high rates on credit cards, overdrafts and mortgages, suggest the banks are making customers foot the bill for the industry's mistakes.'

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Outrage at Loans With Interest Rates of 2,000%

Greedy lenders are exploiting struggling families by offering Christmas loans with crippling annual interest rates of 2,350 per cent. Families hit by the credit crunch are turning to so-called payday loans because they cannot access extra money from high street banks.'

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The Christmas Credit Crunch: Greedy Finance Firms Push Interest Rate Towards 40%

Credit card firms are pushing up interest rates by as much as 7 per cent ahead of Christmas.
The move by Capital One means some customers will be paying almost 40 per cent interest on their Christmas gifts and January sale purchases unless they clear the balance on their cards.

The American-owned finance giant said the rises were to reflect the higher risk of certain customers and 'market conditions'.

But there are concerns that Capital One, which has 4million British customers, will be followed by other banks.
The decision has angered customers, who described the increases as 'legalised extortion'.

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Dire Warning: UK Interest Rates to Rocket

INTEREST rates will rocket as the Bank of England battles to keep inflation under control, its chief economist warned yesterday.

Spencer Dale told insurers the Bank would remain focused on inflation, regardless of the pain that would cause millions of home owners as their mortgage payments soared.

Mr Dale, a member of the Bank’s ­Monetary Policy Committee, which sets interest rates, said: “The committee adjusted monetary policy boldly and ­decisively on the way down in order to meet the inflation target. And let me assure you that, when the time comes, we will be prepared to respond with equal vigour on the way back up.”

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