Store cards 'ripping off customers'

Customers are being "ripped off" by store cards despite new rules aimed at protecting millions of shoppers, a new report has claimed.

Money website Fool.co.uk said some stores were charging almost 50% more interest than credit cards.

The Competition Commission brought in new regulations a year ago to govern the administration of store cards that charged annual percentage rates of 25% or more.

But the report said that some "clever" store card providers had increased their interest by as much as 7% over the past year although still remaining under 25%.

Ed Bowsher of Fool.co.uk said: "Store cards are the devil in disguise. They initially offer attractive benefits and bonuses which can be hard to resist but there is a downside to grabbing these discounts and deals."

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