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Banning of credit card cheques 'welcomed'

The banning of credit card cheques has been welcomed by MoneyNet.co.uk, although the personal finance adviser has said it is "disappointing" that action was not taken sooner.

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2 July 2009

Banning of credit card cheques 'welcomed'”

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MoneyNet's comments follow the decision by the government to ban the practice carried out by credit card issuers of sending out blank cheques to customers, often with a statement, offering them an alternative way to spend on their card account.

As well as the ban, the government has also created a post for a Consumer Advocate to raise awareness of consumer issues.

According to MoneyNet.co.uk, the credit card cheques were used for people to boost their bank balance, particularly those under financial pressure.

The finance adviser said of the cheques: "Sending these cheques to people with little financial discipline or will power is akin to posting candy through a school letterbox."

According to the BBC, the total outstanding credit card in the UK is currently £54.4 billion and has begun to rise after decreasing over the course of last year.

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	Tesco ClubCard Credit Card
	9 months	15 months	16.9^%
16.9% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.9% p.a(variable).
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16.8% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.8% p.a(variable).
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17.5% APR representative (variable). Based on a credit limit of 1200 and purchase rate 17.5% p.a(variable).
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