One of the largest credit companies, MBNA, has shocked its customers by announcing a planned hike in its interest repayments. The rise is expected to hit 34.9% and depressingly for British consumers other companies are believed to be following suit.

Research this week from price comparison website Moneysupermarket .com has also revealed that a third of all cardholders have seen their APR increase in the past 12 months. Those who are with Egg, Capital One, Lloyds TSB, MBNA and Barclaycard have been the ones most at risk of the increase.

An MBNA spokesman commented; "We have millions of customers who are at 0% and many more millions at other low interest rates ... plus all of the offers, points and incentives that we give to cardholders. Our average rate is around 15%."

He continued; "We disclose monthly rates on statements because this helps our customers calculate their monthly interest. Whenever we make changes to a customer's account, we always give written notice. The APR for purchases is clearly shown on this notification, so we do not believe we are trying to mislead customers."