The Money Stop

Following new regulations made by the Competition Commission, retailers have had to reduce the annual percentage rates (APRs) on their store cards to below 25 per cent, however, many have continued to hover just below this rate, it has been reported.

According to Fool.co.uk, a number of store cards offer only just below 25 per cent APR, including Jaeger’s card (24.9 per cent), Russell and Bromley (23.9 per cent) and Marks and Spencer (23.9 per cent).

The research found that some companies even increased their rates after the new rules came in, such as Marks and Spencer which hiked its rate by four per cent.

Ed Bowsher, savings expert at Fool.co.uk, said: “Store card-holders should be aware of the high interest rates which come hand in hand with introductory offers - and should remember that these cards are designed to make you spend, rather than help you save money.”

According to Halifax, the average balance on a credit card at the end of the month stands at £1,859.

Related Posts

Store cards ‘most expensive form of credit’

Store cards are probably "the most expensive form of credit that anyone can consider, claim debt experts. Thomas Charles said that if consumers do decide to take a store card out, they should think very

Store cards forced to admit they’re bad value

Millions of shoppers across the UK will soon be told by their store card provider that they could be getting a better deal elsewhere.An inquiry by the Competition Commission into the Annual Percentage Rate (APR)

BRC advises on store cards

The British Retail Consortium (BRC) advised British consumers yesterday that they must decide for themselves as to whether store cards were worth getting.The credit cards, increasingly popular with UK shoppers, are offered by many large

Choose credit cards over store cards this Christmas

If you are planning to spread the cost of Christmas and the New Year there are a number of options available to you. For many people, particularly those lured into shops when the January sales

Consumer group wants investigation into calculation of credit card interest

The UK consumer group, Which?, has demanded an investigation into how credit card companies calculate the interest to be paid on cards, claiming that many companies are using a wide range of methods to calculate

Beware of credit card costs

Britain's top 20 credit cards use 12 different ways to calculate interest, meaning that 'cheap' credit cards could cost more than you may think. According to Which?, the APR (annual percentage rate) figure may not

‘Tis the season to avoid store cards

As Christmas continued to get nearer and nearer experts have been warning consumers across the UK to avoid the temptation as taking out a store card, as this could lead to high levels of debt

GECB fined over PPI

GE Capital Bank (GECB) has been fined by the Financial Services Authority (FSA) for failing to have adequate systems and controls in place for selling insurance.The bank was hit with a £610,000 fine following an