Perhaps someone on WB who is employed in finance can enlighten me.
I received a letter from Vanquis bank yesterday informing me that I had been pre-selected to apply for a visa credit card with an initial credit limit of £1000.
Although I have no intention of accepting their offer, I was gob-smacked at the interest rate applied to the card – 39.9% APR variable. In light of the recent ‘credit crunch’ and the fact that interest rates are currently at a historical low, I find this figure unbelievable.
Is there a ceiling on interest rates or can these apparent loan sharks fix whatever rates they like?
