The move by Halifax to link their credit card rates to Bank Rate could mean dire consequences for borrowers.

Five million Halifax and Bank of Scotland credit card holders face steep rises in interest rates as the bank announced a radical overhaul of its charges. Most controversial is its decision to link the APR (annual percentage rate) charged on your credit card to the Bank Rate - currently at a 300-year low of 0.5pc.

The move has been criticised as an "extraordinary attempt" by part-nationalised HBOS to extract additional revenue from customers. The Bank Rate isn't expected to rise until later this year, but it is a racing certainty that interest rates will only go up.

Martyn Saville of Which? said: "This seems like a cynical ploy to squeeze more interest out of HBOS customers." As he pointed out, most Halifax credit cards charge an APR of 15.9pc or 16.9pc. If Bank Rate climbs to.....Read more HERE