logo
Credit card provider used by more than half a million customers HIKES interest rates adding £167 to bills

Credit card provider used by more than half a million customers HIKES interest rates adding £167 to bills

The Sun10-05-2025

A MAJOR credit card provider used by more than half a million customers is hiking interest rates for some customers.
Zopa Bank, a digital challenger bank that introduced its credit card in 2020, is raising these unwelcome charges for some of its users.
1
When the card was first introduced, it attracted many applicants with advertised rates as low as 9.9% APR.
The APR, or annual percentage rate, is the yearly cost of borrowing on a credit card, including interest and fees.
Although the card advertised a representative APR of 34.9% (which they legally had to offer to at least 51% of applicants), many customers with good credit scores initially received the lower rate of 9.9%.
However, The Sun can reveal that Zopa Bank has now increased its lowest available APR from 9.9% to 26.6% for new customers.
They are also raising rates for some existing customers who previously benefited from rates below 26.6%, leaving some users frustrated.
One customer said in an online forum: "Just a heads up if you have a Zopa credit card as they have hiked my interest rate up 10 percentage points today from 12% to 22% - completely out of the blue
"I can't understand why they are doing this it's puzzling.
Another customer said: "Mine went up from 17% to 26.7%.
"Not that I carry a balance..."
Credit card companies often change their interest rates for various reasons, like market conditions or customer risk.
Changes can also happen individually or across the board, so don't take it personally.
If your credit card APR were to jump from 9.9% to 26.6% you'll end up paying an extra £167 in interest for every £1,000 borrowed over 12 months.
That's because at 9.9%, the interest would cost you £99, but at 26.6%, it rises to £266.
However, it's always important to note that if you consistently pay your balance in full each month, any interest rate changes won't affect you.
A spokesperson for Zopa said: "We regularly review our credit card interest rates to ensure they provide fair value to our customers.
"As part of this process, customers' rates may increase or decrease, as is the case now.
"When a customer's rate changes, we provide at least 60 days' notice.
"Customers have the choice to opt out from this. If they do, their interest rate will stay the same and their credit card account will be closed once the balance is fully repaid.
"We don't impose a strict repayment deadline, allowing customers to pay off their balance at a reasonable pace with no impact on their credit file or any other Zopa Bank products."
If you can't afford to pay more than the minimum balance but want to avoid the added costs of interest, it could be worth shifting your debt to a balance transfer credit card.
The cards are a crucial tool for people who have racked up spending and are trying to repay, as they don't charge any interest on sums moved for set period of time.
Think before you borrow
BORROWING sounds like a simple way to help pay bills – but beware falling into debt you cannot pay back.
It's always vital to ask yourself if you actually need to borrow before committing to a new credit card, personal loan or overdraft.
If you cannot afford to pay off debt you already have, you should avoid at all costs taking on any more.
How do balance transfer credit cards work?
Credit card customers can put an end to paying interest for up to 32 months for a small processing fee of between 2-4% by shifting their debt to a balance transfer card.
These cards make your debt easier to pay off because money saved on interest can be entirely put towards what you owe.
However, it's important to note that you can't transfer a balance between cards from the same bank.
You should always use an eligibility calculator before applying for a balance transfer card because every credit card application leaves a mark on your credit file and can affect your credit score.
The top card available right now is from Barclaycard, offering an impressive 33 month 0% balance transfer deal with a fee of 3.45%.
Alternatively, HSBC and Tesco Bank provide strong options with 32 month 0% balance transfer deals, featuring fees ranging from 3.19% to 3.49%.
To compare all the available cards, visit price comparison websites like MoneySavingExpert's Cheap Credit Club or Compare the Market.
Once you run your details through an eligibility calculator and you've been shown that you're likely to be accepted, make a formal application.
To do this, you will need to provide your name, address and email address as well as details of your income so a provider can assess your eligibility.
You will also need to provide details of how much money you want to transfer to the new card, but you can often do this after you have been accepted.
How to get free debt help
There are several groups which can help you with your problem debts for free.
Citizens Advice - 0800 144 8848 (England) / 0800 702 2020 (Wales)
StepChange - 0800138 1111
National Debtline - 0808 808 4000
Debt Advice Foundation - 0800 043 4050
You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting MoneyHelper.org.uk or Gov.UK.
Speak to one of these organisations - don't be tempted to use a claims management firm.
They say they can write off lots of your debt in return for a large upfront fee.
But there are other options where you don't need to pay.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Nationwide rent controls planned as Government looks at higher landlord fines
Nationwide rent controls planned as Government looks at higher landlord fines

BreakingNews.ie

time20 minutes ago

  • BreakingNews.ie

Nationwide rent controls planned as Government looks at higher landlord fines

The Government has announced a package of rent controls as the Minister for Housing acknowledged that rents in Ireland are 'way too high'. The existing rent controls for areas of high demand will be extended across the country. Advertisement Rent pressure zones (RPZs) were introduced in 2016 to help control spiralling costs for tenants. The RPZ system, due to expire at the end of the year, has in effect been extended nationwide and sees all existing tenancies in Ireland come under a 2 per cent cap or inflation, whichever is lower. Rent increases in new-builds will be capped by inflation and not the 2 per cent cap in order to incentivise the development of apartments. Minister for Housing James Browne said financial investors 'won't even look at Dublin' because of the 2 per cent RPZ cap. Asked whether these proposals would reduce average rent costs in Ireland, Mr Browne said he expected rents 'to fall over time' but would not comment over what time period this would happen. Advertisement 'This is not being presented as a silver bullet. This is to strike a balance, to bring clarity and to bring certainty,' Mr Browne said. On Tuesday, the Cabinet agreed to legislate for Mr Browne's swathe of new rent and tenancy reforms. New tenancies created from March 1st, 2026, onwards will be set at market value and offer a six-year minimum rolling tenancies. At the end of the six-year tenancy, the rent can be reset and 'put back to the market', meaning the first series of rent resets will take place in 2032. Advertisement Large landlords, defined as having four or more tenancies, will be banned from carrying out no-fault evictions for tenancies beginning from March 1st, 2026. Housing Minister James Browne speaking to the media at Government Buildings in Dublin. Photo: PA Images A small landlord can end tenancies via a 'no fault eviction' in limited circumstances, such as economic hardship or to move a family member in, but if they do that, they cannot reset the rent. 'If there is a dispute between a landlord and a tenant on what the market value is, they can go to the Residential Tenancy Board (RTB) for adjudication,' Mr Browne said. 'A tenancy of minimum duration of six years is a real leap forward for tenant protections in return for allowing landlords to reset rent.' Advertisement The Department of Housing said all landlords can end a tenancy where there is a breach of tenant obligations or where the dwelling is no longer suited to the tenants. The department also said that all landlords will have the right to reset rent where the rent is below market at the end of each six-year tenancy, unless a 'no-fault eviction' occurs. 'Resetting of rents will not be allowed following a no-fault eviction. Rent resetting will only be allowed where a tenant leaves a tenancy of their own volition or has breached their tenant obligations,' Mr Browne said. 'Resetting of rents will not be allowed during any tenancy created on or before 28 February 2026 due to the uncertainties it would cause for tenants with existing tenancies.' Advertisement Asked about who would police whether the ban on resetting rents except in the case of no-fault evictions is being adhered to, Mr Browne said it would be the Residential Tenancies Board (RTB). 'I would hope that people will report landlords who are breaking the law in this respect,' he said. He said he was engaging with the Attorney General on what level of fines can be imposed on landlords for breaking eviction rules. Ireland Rent pressure zones: What are they and why are the... Read More He said they should be 'higher' and 'substantial' but there are limits in increasing fines before it crosses into the jurisdiction of the courts. He said he would also 'like to see' a rents register that would bring transparency to what a property had charged in rent previously. 'Our rents are way too high in this country, we know that. We know the only way to address that is increasing supply, so we have more competition, and then you will start to see rents go down.'

EU seeks to lower a price cap on Russian oil and discourage Nord Stream pipeline investors
EU seeks to lower a price cap on Russian oil and discourage Nord Stream pipeline investors

The Independent

time41 minutes ago

  • The Independent

EU seeks to lower a price cap on Russian oil and discourage Nord Stream pipeline investors

The European Union wants to lower a cap on the price of Russian oil to deprive the Kremlin of extra profits to fund its war in Ukraine as part of a new raft of sanctions aimed at forcing Moscow to the negotiating table, senior officials said on Tuesday. EU foreign policy chief Kaja Kallas said the bloc is 'proposing to lower the oil price cap from $60 to $45, which is lower than the market price, and lowering the oil price cap will hit Russia's revenues hard.' Kallas said the EU also wants to impose 'sanctions on the Nord Stream pipelines to prevent Russia generating any revenue in the future. In this way, it sends a clear signal we are not going back to business as usual.' All 27 EU member countries must all agree for the sanctions to enter force. In 2023, Ukraine's Western allies limited sales of Russian oil to $60 per barrel but the price cap was largely symbolic as most of Moscow's crude — its main moneymaker — cost less than that. Still, the cap was there in case oil prices rose. Oil income is the linchpin of Russia's economy, allowing President Vladimir Putin to pour money into the armed forces while avoiding worsening inflation for everyday people and a currency collapse. European Commission President Ursula von der Leyen said she assumed that the price cap would be discussed and agreed among the leaders of the Group of Seven major world economic powers when they meet in Canada on June 15-17. She said the United States and its G7 partners realize 'that the oil price has lowered so much that the effectiveness of the cap is to be questioned, and therefore we all want to lower the oil price from $60 per barrel down to $45 per barrel.' The Nord Stream gas pipelines were built to carry Russian natural gas to Germany but are not in operation. They were sabotaged in 2022, but the source of the underwater explosions has remained a major international mystery. The Commission has said that it wants to impose sanctions on the operating consortium to discourage investors from trying to use the pipelines in future. The blasts happened as Europe attempted to wean itself off Russian energy sources following the Kremlin's full-scale invasion of Ukraine, and contributed to tensions that followed the start of the war. Von der Leyen noted on Tuesday that at the beginning of the war in 2022, 'Russia had 12 billion euros ($14 billion) of energy revenues from fossil fuels" from Europe per month. "And now we're down to 1.8 billion (euros).' The new EU sanctions would also target Russia's banking sector, with the aim of limiting the Kremlin's ability to raise funds or carry out financial transactions. A further 22 Russian banks will be hit with measures, von der Leyen said. An export ban worth some 2.5 billion euros would also be imposed, and the assets frozen of more than 20 Russian and foreign companies alleged to be providing support to the Kremlin's war machine. Von der Leyen said the sanctions are aimed at forcing Russia into serious talks about peace with Ukraine. 'We need a real ceasefire, and Russia has to come to the negotiating table with a serious proposal,' she told reporters. The EU has imposed several rounds of sanctions on Russia since Putin ordered his troops into Ukraine in February 2022. Around 2,400 officials and 'entities' – often government agencies, banks and organizations – have been hit. It's last raft of sanctions, imposed on May 20, targeted almost 200 ships in Russia's sanction-busting shadow fleet of tankers, and tightened trade restrictions to stop produce that could be used for military purposes from reaching Russia's armed forces.

HMRC failure to notify MPs sooner about £47m phishing scam ‘unacceptable'
HMRC failure to notify MPs sooner about £47m phishing scam ‘unacceptable'

The Independent

time41 minutes ago

  • The Independent

HMRC failure to notify MPs sooner about £47m phishing scam ‘unacceptable'

HM Revenue and Customs (HMRC) has been warned by a committee of MPs that its failure to report details of a breach affecting around 100,000 taxpayers is 'unacceptable'. The Treasury Committee said it was only alerted to the information when a notification was published on the HMRC website on the same day as a live session. On June 4, it emerged that HMRC had lost £47 million after a phishing scam breached tens of thousands of tax accounts. Senior civil servants at HMRC told the Treasury Committee that 100,000 people have been contacted, or are in the process of being contacted, after their accounts were locked down in what they said was an 'organised crime' incident which started last year. On Tuesday, the committee published a letter from the Association of Chartered Certified Accountants (ACCA) stipulating that it had not discussed the phishing incident with HMRC and was not aware of it prior to the hearing on June 4. The committee also published a letter sent via email from its chairwoman Dame Meg Hillier to John-Paul Marks, chief executive, HMRC. The letter said: 'I am alarmed that it was never deemed necessary to inform Parliament about an issue which affected such a vast number of taxpayers and led to the loss of £47 million of public money. 'To discover this information during a session from press reports and without adequate time for the committee to review the information in detail is unacceptable.' The letter said the committee is seeking responses from HMRC as to 'why was Parliament not notified earlier about the loss of £47 million of taxpayers' money, whether through a written ministerial statement and/or public or confidential letters to the Treasury Committee and the Public Accounts Committee?' The committee is also seeking responses over why the update was published on the day of the committee hearing on the work of HMRC and who else in Government was told about the incident and when. It also wants to receive a timeline of how the incident unfolded and find out what measures HMRC has put in place to ensure that such incidents do not happen in future. The letter asked for a reply by June 24 2025. Meanwhile, the letter from Glenn Collins, head of technical and strategic engagement, ACCA, to Dame Meg, dated June 5, said: 'While we regularly engage with HMRC, including earlier in the year about issues relating to agent account access, we have not received any communication from HMRC on the issue of taxpayer account breaches until yesterday. 'We have highlighted to HMRC our frustration that HMRC has not been transparent or timely in its communication over this important issue.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store