APR of up to 222.7% on Easy Shop Card could exploit cash-strapped shoppers in the run-up to Christmas.
Low-income borrowers have been warned against opening an Argos payment card, The Guardian reported today.

Aimed at shoppers who want to borrow between £100 and £500 to spend in the retail chain, the Easy Shop Card has an interest rate of up to 222.7%.

Argos has launched the payment card in association with Provident Personal Credit, however, the interest rates are significantly higher than standard credit cards.

According to price comparison website uSwitch, a consumer who uses the card to purchase a Nintendo Wii games console from Argos with an RRP of £179.99, will have to repay £248.46 over a six month period.

Liberal Democrat shadow chancellor Vince Cable, said: "A lot of people are finding it increasingly difficult to borrow from mainstream high street banks. Many may wel 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."

He added that he felt it was 'wicked' to promote such high interest cards and loans in the run-up to Christmas when 'people feel under pressure'.