Credit card 'bribes' attacked

The row over soaring credit card debt was reignited today as banks and finance companies came under attack for "bribing" customers with interest-free loans of up to £20,000.

Britain's national credit card debt is spiralling out of control, with the total approaching £60 billion. Two men who recently committed suicide over bills they were unable to repay have heightened concern on the issue.

Banks have been offering the loans in mailshots in an attempt to keep customers loyal, targeting customers who shop around for the lowest interest rates.

Alliance & Leicester, Abbey, MBNA and Virgin have all offered loans that are interestfree for the first nine months. Customers who fail to repay within the interest-free period face rates of up to 15 per cent.

Mike Taylor, of consumer magazine Which? said: "This offer is irresponsible. The danger is people get cash in their account and spend it but carry on using their credit card."