Laura Ashley branded ‘unethical’ over store cards
Fashion chain Laura Ashley has been named as one of several high street culprits that have sent credit card to consumers who have not asked for them.
Stores which present credit card to those who have not requested one are acting within the law but have been accused of fuelling the UK’s current debt crisis.
GE Capital, who are responsible for managing around half the store cards in the UK, has already been branded as unethical due to its responsibility for high-interest store cards.
Often - as well as being easier to obtain than a credit card - a store card will charge a fee around ten per cent higher than most credit card, leaving borrowers to repay funds at a staggering 30 per cent interest.
There have also been problems in the past when high street stores were accused by the Competition Commission of failing to display the APR or other crucial details on the store card application.
The criticism comes just a week after it was reported that the common nature of debt in Britain means that many consumers are unfazed even by five-figure sums of personal debt.