As the difference between base rates, money market rates and credit card rates continues to widen there are renewed calls for a specific regulator who would have the challenge of regulating UK credit card interest rates. It has become evident over the last few months that despite UK base rates remain at 0.5% many credit card companies continue to push their rates higher and higher.

Many credit card customers are now being charged in excess of 20% on their debts as the credit card providers look at ways to reduce their losses from payment defaults and protect their profits. However, as we have mentioned on numerous occasions, by the increasing credit card interest rates to offset the damage caused by payment defaults this is pushing more and more people towards the edge of the financial abyss.

Whether a specific regulator targeted at the credit card industry, as opposed to the financial industry as a whole, would assist consumers in the long term remains to be seen but at this point in time, at least to the naked eye, there appears to be little relationship between credit card interest rates, base rates and money market rates.

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