Capital One, the credit card company, has sent letters to its customers stating that it will be increasing its standard interest rate by as much as 14 per cent.
Consumers have reacted angrily to the massive rate increases, with some now paying almost 30 per cent for purchases. Requests to be moved to other, less expensive deals have reportedly been denied.
Capital One has blamed "changes in the credit environment" for the rate hikes. It says that it is being charged more to borrow, and has to pass this on to the consumer.
The rate increase will be unwelcome news for many small business owners, an increasing number of whom are running their businesses on personal credit cards. The problem has been compounded by the lack of available credit, meaning that the options for alternative card providers are minimal.