State-owned banks are increasing credit card rates just as consumers begin to grapple with paying off their Christmas debts.
Last week, NatWest and Royal Bank of Scotland (RBS) - both part of the banking group majority-owned by the taxpayer - raised purchase and balance-transfer rates for new and existing customers on their Classic cards from 16.9% to 19.9%.
By contrast, non-state-owned providers have made their deals more attractive in a bid to lure new customers.
Barclaycard, Egg and the AA have all extended their introductory 0% balance-transfer periods for new customers, while MBNA launched a card charging 5.9% a year for life on balance transfers, making it one of the cheapest available, though it does have a 2% transfer fee.
Kevin Bray, banking analyst at the data firm Defaqto, said the move by the state-owned banks was "opportunistic": "The rate changes come as people look to consolidate their finances. For many, they could not have come at a worse time."
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The rate rises are a double blow for consumers who are finding it increasingly difficult to find good deals on credit cards. Rumina Hassam, credit card expert at price comparison firm uswitch.com, said: "Card companies are still concerned about risk and are keeping volumes lower by restricting availability."
The problem is exacerbated by inaccuracies on credit reference files used by providers to determine loan and credit card rates, according to the Information Commissioner's Office.
Last week, it urged people to check their files, which cost £2 to access through credit agencies such as Equifax and Experian.
The Department for Business, Innovation and Skills is urging the public to contribute to a public consultation about credit card firms, part of a planned overhaul of the industry. The consultation closes this Tuesday and you can add your comments at bis.gov.uk/creditconsultation.
Loans, meanwhile, are getting cheaper. The average loan rate has fallen from a peak of 10.17% in November 2009, to 10.1% today, according to Moneyfacts, the data firm.
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Last week, Halifax and the Bank of Scotland, both part of Lloyds Banking Group, reduced loan rates. Bank of Scotland cut rates for sums between £7,000 to £15,000 from 12.4% to 11.5%. Halifax cut rates from 12.4% to 9.9%.
Non-state-owned banks are offering better deals, however. Nationwide has recently cut the rate on loans between £7,500 and £15,000 from 7.9% to 7.6%.