Calls made for ‘store card clampdown’

Calls have been made for government policymakers to clampdown on excessively high store card interest rates.

The Conservatives’ shadow chancellor George Osborne recently suggested that while proper debt management is primarily the responsibility of individual consumers, the government should also aim to protect them to some degree.

Around £2.2 billion is currently owed to store card lenders across the country and the Conservative Party have called for the Office of Fair Trading to be given powers to stop companies offering credit at unjustifiably high interest rates.

“Of course individuals have the prime responsibility to keep themselves out of trouble and businesses should only lend to those who can afford it,” said Mr Osborne.

“But government has a role in setting the boundaries and ensuring fair play.”

Earlier this week, Ed Bowsher from price comparison firm Fool.co.uk described store cards as being the “devil in disguise”.

By Dan Mather