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Credit card 'charging customers 227% APR'
Wednesday 29th October 2008A credit card aimed at people on low incomes is charging an APR of 227 per cent.
The Easy Shop card, linked with Argos and Provident Financial, is currently being promoted in the run-up to Christmas, traditionally the biggest shopping period of the year.
Customers who have been turned down for credit at other banks are likely to make up some of the card's user base.
However, it carries a £135 charge for borrowing £100 and paying back £5 a week - equivalent to an interest rate of 227 per cent.
This could leave many customers at risk of falling into a debt spiral.
Liberal Democrat treasury spokesman Vince Cable said that promotion of the card was "wicked" - and that there was a risk of customers being "exploited" by the providers.
Louise Bond, personal finance manager at price comparison site uSwitch, added: "Despite the recession life does have to go on, but we strongly advise people not to be lured into this type of deal.
"It may seem like a quick fix but in will cost you dear in the long run."
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