Store Cards are ripping us off

These cards charge 60 times base rate. Retailers are ripping us off.
As you can see, of the 29 store cards listed above (click on link below for list), only nine charge a yearly interest rate under 20% APR. The remaining twenty cards all charge between 23.9% APR (Russell & Bromley; Marks & Spencer) and a seriously extortionate 30.9% APR for the Creation Account. Across all store cards, the average interest rate for purchases is 25.5% APR, which is close to nine percentage points higher than a typical credit card.
Retailers argue that interest rates aren't so important for store cards, because balances are much lower. However, I disagree, and am very annoyed that these rates haven't come down, even after new rules introduced by the Competition Commission in May 2007. To me, if it looks, smells and feels like a rip-off, then it's sure to be one!
So, despite the best efforts of the government to bring down the cost of borrowing, store-card users still pay interest rates normally associated with loan sharks (my sentiments exactly!). Frankly, we at lovemoney.com think that this store-card scandal must be stopped - with new laws to cap lending rates, if necessary. Likewise, if retailers want our business during this recession, then they'd better start treating their customers fairly right away!
Ditch and switch
To see the list of store cards go to: http://uk.biz.yahoo.com/08042009/389/cards-charge-sixty-times-base-rate.html

Comments

Popular posts from this blog

Memorae

Saint Joanna