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Card charge raised

A card firm is increasing their minimum interest charge - which makes it slightly harder to pay off credit cards.

Provider Egg is to raise its fee from 50p to £1 from next month, the Daily Mail reports.

The effect of this change means that leaving a card balance of 1p - the smallest amount on which interest can be charged - will result in an extra £1 on bills.

This means that the interest is effectively charged at 10,000 per cent - a further sign that card, loans and other credit firms are tightening their criteria in the ongoing financial crisis.

Egg, bought out by industry giant Citigroup last year, has previously courted controversy by cancelling the accounts of 161,000 customers.

The mass cull - amounting to seven per cent of Egg cardholders - was undertaken following what the firm said was a 'risk review'.

However, the firm was subsequently accused by a Labour MP of profiteering through the move.

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