HSBC 'to cut cheque guarantee limit'
Credit card provider HSBC is to cut its cheque guarantee limit on some customers' debit cards, it has been reported.
Credit card provider HSBC is to cut its cheque guarantee limit on some customers' debit cards, it has been reported.
Most customers have a £100 guarantee limit on their cards, and the 300,000 customers who have a £250 limit will now have their guarantee dropped to the same level.
According to HSBC, the move is intended to cut losses from cheque fraud.
It is also hoped the cut will discourage people from spending money they do not have, according to the BBC.
The guarantee limit cut will only apply to cheque payments and not debit card payments, which will still be guaranteed to £250.
A spokesperson told the BBC: "It is about reducing risk from a mechanism that allows a customer to continue to make purchases from their current account when they know they don't have the funds or an approved overdraft."
It will still be possible for customers to write cheques with a value greater than £100 but they will only be guaranteed to that value, he continued.
Last week the government announced plans to ban unsolicited credit card cheques.
In the release of a White Paper, the government also revealed plans to create the post of a Consumer Advocate to represent borrowers.
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