Retailer''s card ''charges 227% APR ''

By MoneyhighStreet Staff. Published on October 27, 2008 This post currently has no comments.

A credit card currently being offered in the UK carries an APR of 227 per cent, the Daily Mail reports.

Research from the newspaper suggests that the EasyShop card linked with Argos obliges borrowers to pay back £135 for £100 in credit over a 27-week repayment period.

The card is offered by the retailer in conjunction with Provident Financial.

Over recent months, the credit crunch has led to restrictions being placed on "high risk" customers by banks.

This is expected to contribute to a 1.1 per cent fall in the value of items purchased by credit cards over 2008, according to a recent report from Datamonitor.

Commenting, Liberal Democrat treasury spokesman Vince Cable told the newspaper: "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."