Bank of Ireland has imposed an interest rate increase on its credit cards.

The bank has imposed a rate increase of between 0.7% and 4% on all cards and the fee rise will be reflected in bills in January.

Rates will now be as high as 19.9% on the bank's ''Classic'' credit card.

A spokesperson for Bank of Ireland said the increases were necessary. 

“It is over 12 months since we last increased credit card interest rates. However, with continued pressure from high funding costs and the continuing high risk and loss profiles, these changes were considered necessary to sustain product investment,'' a statement from the bank said.

Consumers' Association of Ireland Chief Executive Dermott Jewell said the bank had made a determined calculation to take advantage of people and that it will make a significant amount of money from the increase.