- and experts warn more could follow

Virgin Money has hit thousands of credit card customers with a massive interest rate hike of 50 per cent, and borrowers elsewhere have been warned that other card providers could follow suit. Customers selected by Virgin Money in a review of their database will see the rate they pay on purchases increase from 16.8 per cent to 24.9 per cent. While those affected by the hike are thought to be less than 20,000 of Virgin's two million customers, the sudden rate increase could be seen as a harbinger of a more widespread crackdown on credit card borrowers. Balance transfer rates have also gone up from 18.9 per cent to 27.9 per cent. However, anyone applying for a new credit card will still receive the 'old' more generous terms.

Richard Branson's Virgin Money, which recently bought Northern Rock, informed cardholders in a mailshot this week. A spokesman for Virgin Money insisted that less than 1 per cent of customers have been affected by the increases....Read more here