Store card charging practices due for a watchdog savaging

The consumer watchdog is about to publish a report, which will take the issuers of store cards to task on the ridiculous rates of interest that they charge, with some going as high as 32%.

There is a reported 10 million owners of store cards in the U.K and some of the biggest stores in the country are being seen as amongst the worst offenders.

Take for example Toys ‘R’ Us they’re store card charges an interest rate of 32.5% APR with Monsoon at 30.7%, as is Laura Ashley. With stores such as Comet, House Of Fraser and Debenhams, not escaping without criticism either.

When you have taken one of these store cards out it is usually due to the offer of a discount on the goods that you are already trying to purchase, so you think why not will save some cash and go for it. But if you had to take the time out and ask the assistant who is trying to sell the store card the APR charged to the card, they will not know. This is one of the main points with these credit cards, as well as a high interest charge, they are being sold badly to the public.