{"id":108995,"date":"2025-05-15T09:30:00","date_gmt":"2025-05-15T08:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=108995"},"modified":"2025-05-15T09:30:29","modified_gmt":"2025-05-15T08:30:29","slug":"zopa-raises-credit-card-apr-to-26-6","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/zopa-raises-credit-card-apr-to-26-6\/","title":{"rendered":"Zopa Raises Credit Card APR to 26.6%, Affecting Over a Million UK Customers"},"content":{"rendered":"\n

A major UK digital lender, Zopa Bank, has increased the representative APR on its credit cards from 9.9% to 26.6%<\/strong>, affecting both new applicants and some existing customers. This shift could add up to \u00a3167 in annual interest per \u00a31,000 borrowed, placing additional financial pressure on cardholders already navigating a high-interest environment.<\/p>\n\n\n\n

The decision has prompted concern from customers, with some reporting significant and unexpected jumps in their individual interest rates, while others have questioned the rationale behind such a steep adjustment. <\/p>\n\n\n\n

The change reflects broader trends in consumer finance, where digital banks <\/strong>are increasingly recalibrating product terms in response to market conditions and credit risk assessments.<\/p>\n\n\n\n

Representative APR Increase Impacts Borrowing Costs<\/h2>\n\n\n\n

According to reports, Zopa Bank<\/a> has increased the lowest available annual percentage rate (APR) for new credit card applicants to 26.6%, a substantial jump from its previous 9.9% baseline.\u00a0<\/p>\n\n\n\n

The change affects the \u201crepresentative APR,\u201d a standard measure used in UK financial advertising, which must be offered to at least 51%<\/strong> of approved applicants. It also means some existing customers <\/a>who had previously secured lower interest rates are now seeing their rates rise\u2014sometimes without prior warning.<\/p>\n\n\n\n

One user on a financial forum shared that their interest rate had increased by 10 percentage points, rising from 12% to 22%. Another reported a jump from 17% to 26.7%. Although not all users carry a balance and therefore avoid paying interest, those who do face a notable increase in borrowing costs<\/strong>. <\/p>\n\n\n\n

For instance, a cardholder with a \u00a31,000 balance would see annual interest charges rise by \u00a3167 under the new rate.<\/p>\n\n\n\n

Zopa explained the move as part of a regular rate review process. A spokesperson stated: \u201cWe regularly review our credit card interest rates to ensure they provide fair value to our customers. As part of this process, customers\u2019 rates may increase or decrease, as is the case now.\u201d<\/p>\n\n\n\n

Customers Offered Opt-Out but Face Account Closure<\/h2>\n\n\n\n

Zopa Bank confirmed that affected users receive at least 60 days\u2019 notice <\/strong>when changes to their interest rate occur. Customers are given the option to opt out of the new rate. However, choosing this route leads to the closure of their credit card account once the existing balance has been fully repaid.<\/p>\n\n\n\n

According to the bank, customers who opt out are allowed to repay their balances over time \u201cat a reasonable pace,\u201d without affecting their credit score<\/strong> or their relationship with other Zopa Bank products. The bank emphasised that this policy aims to support users who may be impacted by rate changes while maintaining compliance with regulatory standards. <\/p>\n\n\n\n

This update aligns with a broader shift in the UK financial sector, where interest rates have risen following the Bank of England<\/a>\u2019s tightening measures.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Zopa, one of the UK\u2019s major digital banks, has significantly raised credit card interest rates for new and existing customers. The change could add \u00a3167 a year to some borrowers’ bills, sparking frustration and confusion among users. The sharp adjustment affects more than a million cardholders and signals a wider shift in lender behaviour. While Zopa offers an opt-out, it comes at a cost\u2014and many are now weighing their options.<\/p>\n","protected":false},"author":10,"featured_media":108998,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-108995","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/108995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=108995"}],"version-history":[{"count":3,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/108995\/revisions"}],"predecessor-version":[{"id":108999,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/108995\/revisions\/108999"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/108998"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=108995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=108995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=108995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}