CREDIT cards issued by stores have come under fire from consumer watchdogs in the wake of a report which challenges some of Britain's best-known firms to justify their interest rates.
The Office of Fair Trading (OFT) will be launching an in-depth investigation into the issue after research by North Yorkshire's trading standards team revealed interest charges can range from zero per cent to 34.9 per cent APR.
"I think this OFT study is long overdue," said North Yorkshire County Council's executive member for trading standards, Councillor Carl Les.
"With base rates at an all-time low of three to four per cent, it's difficult to see how these rates can be justified.
"High Street credit is very easy to obtain - some might say too easy. Many who use these cards can ill-afford the extra cost. Some of these rates are double many standard bank credit card charges.
"People will shop around for the best price on something to save just a few pounds yet, in many cases, the difference in credit costs are far greater."
In-store credit has also been the subject of a Treasury Select Committee inquiry which accused some companies of "fleecing" customers.
MPs have criticised some stores for encouraging young people to run up debts by offering ten per cent discounts on fashion item as long as they accept store credit cards, as well as tempting youngsters with buy-now-pay-later offers.
The top ten in the in-store credit card interest league are:
1 National Tyres (up to 34.9%)
2 Halfords (up to 34.4%)
3 Carpetright (up to 34.4%)
4 Comet (up to 31.9%)
5 Warehouse Card (up to 30.9%)
6 Miss Selfridge (up to 30.9%)
7 Country Casual (up to 30.7%)
8 Kwikfit (up to 30.7%)
9 Laura Ashley (up to 30.7%)
10 New Look (up to 29.9%)
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