BoI will raise interest on credit cards by up to 4pc

Bank of Ireland is to bring in a new interest rate regime on its credit cards with hikes of up to 4pc.

The bank has imposed a rate increase of between 0.7pc and 4pc on all cards and the fee rise will be reflected in bills in January.

Rates will now as high as 19.9pc on the bank’s ”Classic” credit card.

A spoksesperson for Bank of Ireland said the increases were necessary.

“It is over 12 months since we last increased credit card interest rates. However, with continued pressure from high funding costs and the continuing high risk and loss profiles, these changes were considered necessary to sustain product investment,” a statement from the bank said.

Dermot Jewell, the chief executive of the Consumers Association of Ireland, said the bank had made a determined calculation to take advantage of people and that it will make a significant amount of money from the increase.