Report uncovers sales practices at store card retailers

17/11/2008

Many retailers who offer high-interest store cards are not warning customers of their APRs, a newspaper investigation has suggested.

The News of the World found that some staff either did not mention or did not know the rates, despite being willing to sell the cards.

APRs for cards sold by Argos, New Look and Topshop come to 27.9, 28.9 and 19.9 per cent respectively - well above the average.

At New Look, the undercover reporter was given the contract and offered a pen before being told of the rate.

Meanwhile, at Topshop the APR was not mentioned - while an Argos staff member told the reporter that they didn't know "what [the rate] means".

Responding, the retailer said that it was "disappointed to hear a member of staff was unable to provide satisfactory assistance".

A Topshop spokesman said that the firm was "sorry" that the reporter found the service "unsatisfactory" and New Look said that it was "never our intention to mislead customers".

Tags; Debt Management and Banking, Credit Card Lifestyle,

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