Cable slams 'wicked' 227% APR on card

28/10/2008

A credit card linked with high street retailer Argos has an APR of 227 per cent.

The Easy Shop card, provided by Provident Financial, is currently being marketed to shoppers for Christmas.

It is likely to be used as an alternative source of credit by some who have been turned down by mainstream banks - many of whom have tightened their lending criteria in the current financial crisis.

However, £100 borrowed from the card results in £135 being paid back over a 27-week period, equivalent to 227 per cent APR.

Liberal Democrat treasury spokesman Vince Cable branded the card's promotion as "wicked" and commented: "A lot of people are finding it increasingly difficult to borrow from the mainstream high street banks.

"Many may well feel they have to fall back on things like this. There is a real risk of a very large number of people being exploited as a result."

Louise Bond at financial website uSwitch added: "We strongly advise people not to be lured into this type of deal."

Tags; Debt Management and Banking, Credit Card Lifestyle,

Regional Debt Advice; Debt Advice Wick,

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