Argos shopper pay 222.7% APR through Provident personal credit

To celebrate the start of the Christmas shopping season, trusted high street brand Argos rides the ‘sub-prime' band wagon with Provident Personal Credit, offering consumers the ‘Easy Shop Card'.

Cash strapped shoppers who don't have the money to buy gifts from Argos this Christmas can spread the cost over the next six months at 222.7% APR with Provident Personal Credit. These people do not have to set up any type of banking facility to repay the debt as a ‘local agent' will come to the house to collect the repayments.

Consumers can borrow from £100 - £500 to spend in any Argos store. The Provident Personal Credit website states ‘there are no complicated forms and these cards make great gifts for family and friends'. A consumer taking out an Easy Shop Card with Argos for £500 can expect to pay back £675 in just six months, £175 in interest.

Provident Personal Credit also sell ‘sub-prime' gift vouchers which also carry an APR of up to 222.7%. These vouchers can also be used in Argos alongside 96[1] other major high street stores such as Woolworths, B&Q, JJB, Topshop, Topman, Burton, Mothercare, Comet, HMV, Halfords, Debenhams and House of Fraser.

Purchasing a Wii console from Argos costs £179.99. Using an easy Easy Shop Card or a gift voucher from Provident Personal Credit at 222.7% APR over six months would push the price of this purchase up to around £248.46.

Louise Bond, Personal Finance Manager at uSwitch.com, comments: "Despite being attached to well known and trusted high street brands, people shouldn't be fooled into thinking these deals are anything other than a sub-prime loans with inflated APRs. It seems they really are just cashing in on desperate consumers who need relatively small amounts of money quickly. These vulnerable customers may not care how much they have to pay back as they are just focused on getting through the Christmas period.

"This type of lending will only act as a catalyst for the current economic situation. 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."