
A store card claiming to offer a 0% annual percentage rate (APR) charges the equivalent of over 130% interest on some typical borrowing.
Marketing for the E-Platinum Plus card comes with the following slogan: "Receive all of the privileges of platinum with the E-Platinum Plus Card! 0% APR Fixed Forever!"
There is no interest charged, but the card – which can only be used to buy from the online department store, the E-Credit Shopping Club – also comes with a £79.95 joining fee for many and a £4.95 monthly maintenance fee.
These fees are only mentioned in the small print.
In the first year, assuming a constant £100 balance, that's the equivalent of a 139% annual interest rate. On £500, it's 28% and on £1,000, it's 14%.
The Office of Fair Trading says firms normally have to include fees in their stated APR unless they are "incurred as a result of a failure by the debtor to do or refrain from doing something required, such as default charges".
Dan Plant, MoneySavingExpert.com money analyst, says: "If a card markets itself at 0%, most would expect to pay nothing on the debt, yet bizarrely borrowers could pay multiple fees, so beware!"
In some cases, the card will be cheaper than borrowing on a conventional credit card (see the 0% Credit Cards guide).
Assuming a constant £1,000 balance, you'll pay £200 interest on a typical 20% APR plastic compared to £139.35 on the E-Platinum Plus.
MoneySavingExpert.com tried to contact the company on three occasions for a right of reply, twice by phone and once in writing, but was not given access to a senior member of staff nor given an official statement.
A customer service agent emailed saying: "Our 0% interest policy makes buying over time easy and affordable. We are continuously working to provide the best possible value for our membership."
Further reading/Key Links
How to get help: Debt problems
Cheap cards: Best balance transfers, 0% Credit Cards
Have your say
This is an open discussion but the comments do not represent the views of MSE. We want everyone to enjoy using our site but spam, bullying and offensive comments will not be tolerated. Posts may be deleted and repeat offenders blocked at our discretion. Please contact fbteam@moneysavingexpert.com if you wish to report any comments.