Marbles, the sub-prime credit card operator, is pushing through large increases in its lending rates, even as the base rate falls. Unlike most lenders, it is closed to new business and has no incentive to keep rates down to win customers. Unlike most lenders, its borrowers have impaired credit scores and may find it impossible to switch to other suppliers. Many card companies are seeking new ways to boost revenues after the crackdown on excessive late payment fees. It may be that private-equity owned Marbles is simply adjusting its prices to take account of a sudden deterioration in the risk profile and default rate of its cardholders. But it risks being accused of fattening up its margins from a vulnerable and captive customer base.

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