Major high-street retailers are targeting poor families with bad credit records to prop up their Christmas sales during the credit crisis.
Dozens of high street stores are taking part in a doorstep lending scheme which charges poor families extreme rates of interest. Woolworths, Comet, B&Q and Mothercare and 92 other retailers have been accepting vouchers that are repaid by borrowers at an annual percentage rate of 222 per cent – more than 10 times the rate of a credit card.
Faced with anger from politicians and consumer groups last night, the Arcadia group, owner of Topshop and Burton, pulled out of the scheme.
Debt groups said the pre-pay card and voucher schemes risk pushing poor families further into the red at a time of economic instability and would further promote a two-tier society
