A new shop in the Clock Towers Shopping Centre has drawn criticism from those who believe it encourages debt.
BrightHouse, which offers credit on household goods with weekly, fortnightly or monthly payments, opened on March 18.
The store’s interest rates mean that customers pay more than the retail price.
Many townspeople have taken to the Advertiser’s Facebook page to comment on the shop. Sarah Beaufoy said: “If you can afford the £6 a week, save the retail value and pay off the full amount. Then you don’t get stung paying interest.”
Others believe it brings an unwelcome downmarket addition to the town. Lisa Marie Steels wrote: “What a waste! Could have had two decent shops there.”
The store’s 29.9 per cent representative APR means that buying a 40” Samsung LED Smart 3DTV and repaying weekly over three years would cost £1102.92, £336.78 more than the retail price.
David Gooding, of Rugby Citizens Advice Bureau, said: “I don’t want to single out one particular store. Although some of these shops give you easy terms of weekly payment, you end up paying more. And if you can’t keep up with the payments then it becomes a debt.
“If you can’t afford the goods, then you should look at who can provide the best loan facility - probably a bank or a credit union.”
A BrightHouse spokesman said: Tthere is demand for BrightHouse’s leading brands and competitive prices in Rugby, and we have already received a warm reception from local shoppers. BrightHouse is a responsible lender and we are transparent in our relationships with customers. The prices of our products are clearly displayed on our price tickets in-store, in our catalogue and on our website, and we work with our customers to ensure they only purchase what they can afford.”