Credit and store cards 'outrage

MPs and consumer groups this week launched their fiercest attack yet on credit card and store card operators for charging "outrageous" rates of interest.

Consumer groups have been campaigning for some time for store cards in particular to cut their rates. Some, such as Comet's card, charge in excess of 30%. MPs jumped on to the bandwagon this week during a hearing by the Treasury select committee as part of an ongoing inquiry into the sector.

MPs on the committee ac cused stores of ripping customers off and of not providing clear information on payment methods such as direct debit that could help reduce the rate of interest paid.

The National Association of Citizen Advice Bureaux told the committee that providers were issuing misleading information.

The committee was also concerned by new debt figures released by the Bank of England this week, showing that borrowing on cards was once again on the rise and that credit card debt alone jumped by £823m in May - the biggest monthly increase since May 2000.