A store which sells household goods at a standard interest rate of 29.9 per cent has opened on a busy shopping street.

BrightHouse, a new store in London Road, Brighton, sells electrical goods and furniture to people whose credit is not checked through the usual scoring system.

The firm says it uses another method which "more accurately reflects a person's ability to stick to an agreement" and insists it is a responsible retailer.

Customers pay a small amount each week for up to three years until they have finally paid the full amount. This can be up to four times the price other retailers charge for the same item.

BrightHouse charges a standard annual interest rate of 29.9 per cent. If customers agrees to optional extras they can pay up to 120 per cent more for an item than its original price.

A 28in digital television that costs £399 at Argos costs £1,246.44 from BrightHouse after three years of payment including service cover.

A washer-dryer that costs £404 from the Co-Op costs £1,168.44 after a 156-week credit agreement with service cover from BrightHouse.

The optional service charge covers customers for repairs and allows them to return the product if their financial circumstances change.

If a customer misses payments for two weeks the product can be reclaimed by the store, no matter how much has already been paid for it.

A former BrightHouse employee said: "Practically all the customers were from council estates and on benefits, lots of them with kids."

Karl Dayson, a specialist in community finance and affordable credit at Salford University, has researched BrightHouse's practices.

Dr Dayson said: "I can think of no better marker of social deprivation than having a BrightHouse store open in your area."

Adrian Davies, manager of Brighton and Hove Credit Union, a not-for-profit company which offers affordable loans to low-income people, said: "People need to know they don't have to go to stores like BrightHouse. We can loan money at reasonable rates with no hidden costs."

Neighbourhood manager at eb4u, Paul Allen, said: "Stores like these help push people into poverty and help them stay there."

A BrightHouse spokeswoman said: "BrightHouse is a responsible retailer with a very good reputation among the people who matter most, our customers.

"At BrightHouse those who choose to apply for credit are not put through electronic credit scoring methods.

"We use our own system which we know more accurately reflects a person's ability to stick to an agreement.

"We work closely with the relevant regulatory and consumer bodies."