Embattled payments company Zip Co has notified customers that it will be boosting the interest rate on its line of credit product, Zip Money.
From 1 July, the standard variable interest rate will rise 200 basis points to 21.9 per cent.
Zip Money customers can avoid incurring the hefty interest charges if they repay their debt within three months.
The company has also notified customers in a letter that terms and conditions for Zip Money contracts would be amended from 20 July.
Zip Co’s share price, which has plunged more than 85 per cent in the last 12 months, lost more ground on Monday despite a rally across the ASX.
Zip scrip closed down 2 cents to 51.5 cents.