A NEW credit card for the poor is to charge interest at up to 70 per cent.

The Vanquis Visa card, marketed under the slogan "Stay in control of your budgeting", is being targeted at families who have trouble borrowing money. They will have to earn just £5,000 a year and they will be offered spending limits starting at £150.

A typical Vanquis rate will be 49.9 per cent. But this will rise to 69.5 per cent - 15 times the Bank of England base rate - for people it sees as especially high-risk borrowers. Debt campaigners say the rate - nearly five times more than a standard card - will drag thousands of people into debt. The Sunday Mirror has launched a campaign to demand a cap on interest rates, a halt to reckless lending and better financial education.

Typical charges:

• Cash Loan amount £290.00
• 55 Weekly repayments of £8.70
• Total amount payable £478.50
• Typical APR 177%

Labour backbencher John Battle, of the Treasury Select Committee, which is currently investigating banks and lending companies, said: "To offer money to people struggling to find it and then charge them sky-high rates is immoral. The card's spending limit of £150 is not aimed at people who want the latest kitten-heel boots. It's there to tempt people who need money for necessities. It will be used to buy a second-hand cooker, a stick of furniture or a child's cot. "The money men behind this new card are nothing better than vultures. They are preying on the poorest and the most vulnerable people in society - people who deserve our protection from rogues like these."

The launch comes as the Commons are due to debate the final stages of the Government's Consumer Credit Bill. Some MPs - including Mr Battle - will now press for rates to be capped at 30 per cent - outlawing the new card. Vanquis is part of Provident Financial, the biggest doorstep lender in the country. Its executive directors last year earned up to £583,000 - and the chief executive's pension fund rose from £916,000 to £1.3m.

In North America these type of loan sharking rates have been banned for years, but the UK Government recently rejected the capping of 'loan-shark' interest rates. The financial industry is now taking full advantage this by charging what they like. Britain now accounts for 75% of ALL European credit card borrowing.

Perhaps if Britons didn't lose such an enormous amount of their income to a 70% council tax increase in eight years, 66 'stealth tax' rises in the past eight years, 17.5% VAT, excise duties, stamp duty, capital gains tax, inheritance tax, national insurance rate increases, income tax, rip-off bank charges, rip-off prices, TV licences, etc., and many were earning a decent 'liveable' net wage - they wouldn't need to get into huge debt in the first place!

7th March - Update: Sunday Mirror claims victory over Loan Sharks Click here