Credit card interest hike from HBOS banks

By UK CreditCards.com

Halifax and Bank of Scotland are currently upping the interest rates on their credit cards, a report has suggested.

The Guardian newspaper spoke to customers of the HBOS-owned banks who had received letters informing them of an interest rate hike.

Some Halifax customers have been told that they will soon be paying 18.95% interest -- a rise of 5% -- while a Bank of Scotland customer told the newspaper that her standard rate had reached 20.95%.

An HBOS spokeswoman told the Guardian: "The changes will affect a small number of our card holders and will be according to each customer's personal circumstances.  "The average increase is between 1% and 4%, which is inside government guidelines and reflects what is happening across the credit card market."

Former HBOS chief executive Andy Hornby waived a £1m payoff from the bank when he lost his job as a result of the Lloyds TSB takeover, it was revealed at the weekend.

Mr Hornby only received £2,970 in basic statutory redundancy pay.

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Published: 13 April 2009