uSwitch.com: Argos credit card comes at 222.7% APR

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uSwitch.com: Argos credit card comes at 222.7% APR

Mon 27th Oct 2008

A credit facility offered by retailer Argos carries a 222.7 per cent annual percentage rate (APR), it has been found.

Comparison and switching website uSwitch.com said that customers can borrow between £100 and £500 to spend in Argos under the credit offer.

It found that someone taking out an Easy Shop Card with Argos for £500 can expect to pay back £675 over the next six months, accumulating £175 in interest.

The website also warned against Provident Personal Credit, which sells gift vouchers for use in stores including Argos, Woolworths, Topshop, Topman, Debenhams, House of Fraser and HMV, also with an APR of up to 222.7 per cent.

Louise Bond, personal finance manager at uSwitch, said that such offers are "sub-prime loans with inflated APRs" and accused the lenders of "cashing in on desperate consumers who need relatively small amounts of money quickly".

Last week, uSwitch reported that consumers are being "fleeced" by up to £1 billion on credit cards due to conditions in the small print of the deals.

It cited such things as increases in cash withdrawal fees and purchase APRs.

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