An Argos payment card charging a whopping 223% a year has been described as "wicked" by Liberal Democrats' shadow chancellor Vince Cable. The Easy Shop Card is offered by moneylenders Provident Financial only for use in the catalogue shopping chain.

Mr Cable said: "A lot of people are finding it increasingly difficult to borrow from the mainstream high street banks. Many may well feel they have to fall back on things like this. There is a real risk of a very large number of people being exploited as a result.

Shoppers can borrow up to £300 by loading it onto the payment card, but the card can be used only at Argos. The loan is repaid on a weekly basis to Provident Financial agents who call at people's homes.

Andrew Hagger of Moneynet.co.uk said: "With Christmas approaching, there is a real danger that consumers will sign up for this card, which for many will result in debts that will prove to be anything but easy to repay."

Louise Bond of uSwitch.com, said: "Despite being attached to well-known and trusted high street brands, people shouldn't be fooled into thinking these deals are anything other than a sub-prime loan with inflated APRs. It seems they really are just cashing-in on desperate consumers who need relatively small amounts of money quickly. These vulnerable customers may not care how much they have to pay back as they are just focused on getting through the Christmas period.

"This type of lending will only act as a catalyst for the current economic situation. Despite the recession, life does have to go on but we strongly advise people not to be lured into this type of deal. It may seem like a quick fix but in will cost you dear in the long run."

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