Pressure on the Bank of England to raise interest rates intensified today as inflation increased to its highest level in more than two years in January.
The Co-op will punish credit card customers who legitimately reject an interest rate rise by demanding they repay costly debts in just six months. Otherwise, they must accept the initial hike.
Fee-charging firms are already taking advantage of government cuts that may restrict consumers' access to free debt help due to the closure of many advice centres.