AS consumers and retailers gear up to the busiest spending time of the year, City of York Trading Standards is warning shoppers to be careful not to be stung by misleading credit deals.

Many of the goods traditionally bought as presents at this time of year, such as music systems, cycles and computers are often made more attractive and affordable due to the availability of interest-free credit.

However, while many people appreciate the opportunity to spread the cost of Christmas over several months, not everyone realises that such deals can end up costing many hundreds of pounds in extra charges if they don't read essential information contained in the small print in the credit agreement very carefully.

The danger is that if consumers slip up and fail to make the final payment at the end of the interest-free period they can face hefty interest payments which could amount to the purchase price of the goods. This is because if the buyer fails to keep to the letter of the agreement, lenders often reserve the right to backdate the interest payments to the start of the loan and the interest rate may be very high.

Many feel that some deals are actually structured in such a way as to make it more likely that customers will fail to make the final payment. For instance, consumers may sign up to make payments by monthly direct debit but may then fail to realise that the small print requires them to make a final one-off payment to clear the loan by a certain date to ensure the deal is interest-free. Those who fail to meet the deadline, which is typically six months or one year, even by a matter of days, will be shocked to find they have fallen into the interest-free trap and that they are liable to pay charged interest payments from the date they signed the agreement to the date they settle the account.

The Department of Trade and Industry is currently looking at the law which covers interest-free deals to see if they can be made clearer to consumers, but City of York Trading Standards advises shoppers to be alert to the pitfalls and to read the small print. While credit can be a helpful and convenient way of making purchases it is advisable not to be too impulsive - once you work out the total cost, is the interest-free deal still the bargain you thought it was? If it is a good deal and you can afford the repayments then go ahead - but don't forget the final payment!

For further advice on credit or any other consumer matter City of York Trading Standards can be contacted by telephoning 01904 551562 or calling in person at 9 St Leonard's Place between 8.30am and 5pm. Our fax number is 01904 551511 and our e-mail address is trading.standards@york.gov.uk