Credit card customers face higher costs, experts warned yesterday, as banks impose new charging structures on borrowers. High street bank Halifax announced that it is linking the rate that credit card holders pay to Bank of England interest rates.

It means that a typical Halifax credit card rate of 18 per cent will automatically increase by 0.25 per cent if the Bank Rate increases by that amount.

The controversial move has been condemned by industry experts because the Bank Rate is at a historic low of just 0.5 per cent and is expected to rise to 2 per cent by the end of next year.

It will be a fresh blow to struggling households who have seen their budgets stretched to the limit by the rising cost of living.

The bank is accused of profiteering, having not reduced its card rates in line with the dramatic fall in the Bank Rate during the credit crisis. It dropped 4.5 per cent within.......Read more HERE