press release

INFLATED APRs on store cards are likely to come under increasing pressure from consumer groups following the Competition Commission’s ruling this week that customers must be told that they can get cheaper credit elsewhere

“We have always warned consumers about the pitfalls of using store cards,” said online data comparison site Moneynet chief executive Richard Brown.

“The rates of interest are astronomical, running to five times the Bank of England base rate. It’s a wonder that these companies have been getting away with it for so long.”

High Street shops often use the tempting ploy of an immediate discount on a purchase to persuade consumers to sign up for a store card.

The prospect of making an immediate saving of 10% is hard to resist, acknowledges Brown – why pay £50 for a pair of shoes if you can get them for £45?

“But the reality is that most customers subsequently fail to control their spending and run up a debt that attracts horrendous interest charges: some control over these punitive charges is way overdue.”