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Labour is a credit card company, who says they want banks to offer “uncompetitive” rates to party members, and not cut rates despite the recent changes by the Bank of England. Labour’s credit card has an interest of 18.9 percent now on purchases and a 23.9 percent cash withdrawal rate. Customers have found this interest rate is the highest rate in the market at the moment, even higher than charity cards being offered.
Gordon Brown has been fighting with banks to make their lending practices better for the customer. He says too many banks are charging high interest rates when they should not be. Many of the High Street Banks have not followed the 1 percent cut rates that occurred back in December. These unfair practices by most banks and Labour are definitely stirring up the customer base.
Take the 0% credit cards available in the market today. This time a year ago there were three times as many and the cards that do exist do not give nearly such long balance transfer deals as they did a year ago. The only exception is the Virgin credit card.
The interest rate is at 2 percent, the lowest it has been in 50 years. Labour and other credit card companies should be passing on this savings to their consumers. It is still amazing though that 15,000 people have still signed up for one of Labour’s cards. When a person takes out the credit card Labour gets a 15 pound donation, and the party receives more donations as the card is used. The card has already managed to raise 1 million pounds, but at a rate of 18.9 percent customers soon find themselves in turmoil.
The cheapest credit card rate on the market right now is 9.9 percent, which is offered through the Co-Operative Bank just like the Labour cards. The Lib Dem credit card has the same standard rate of interest, but they don’t have near the members. It seems that Labour is taking more than just the opportunity to make donations, but they see nothing wrong with their practices, and don’t believe they encourage irresponsible spending. Still you see such offers as instant decision credit cards. They should spend less effort on telling us how long it takes to get accepted and more time lowering the cost of the cards.