Shoppers in Bradford were today warned against taking out sky-high' loans to pay for Christmas.

One loans firm is touting for business in the district by advertising a "Christmas Special" deal which carries a typical Annual Percentage Rate of 222.7 per cent.

The company, E2 Finance, cites an example of borrowing £100 payable at £5 a week over 35 weeks making a total repayable of £135.

But the practices of it and similar firms which offer unsecured loans at huge interest rates were today condemned by Bradford politicians.

Councillor David Ward, deputy leader of the Council's Liberal Democrat group, said: "These firms are pretty despicable. They are preying on poorer people who want their kids to have a good Christmas.

"Some of these firms have punitive rates of interest and people must be very, very wary of these flyers when they come through the letterbox.

"All communities and particularly big estates have advice services; before you do anything go and talk to them."

The Council's Labour group leader, Councillor Ian Greenwood said debt was one of the biggest issues in Bradford.

He said: "At a time like Christmas when there is a strong imperative to spend money on your family I would urge people not to get themselves into debt they might not be able to manage."

Bradford Council's Conservative leader, Councillor Kris Hopkins said a "borrowing culture" was partly to blame.

He said: "I am extremely concerned about the levels of personal debt in the Bradford area. There has been a change in culture where people have stopped saving and continue to borrow."

In its literature, E2 Finance states that applications from unemployed people are welcome and adds No bank account? No problem.' West Yorkshire Trading Standards said it was aware of E2 Finance but the firm was operating within the law.

The Citizen's Advice Bureau issues advice to consumers for the Christmas period on its website.

Teresa Perchard, director of policy, for CAB said: "Every year we see a huge increase in debt problems immediately afterwards. With a little forward planning, Christmas panic buying can be avoided."