New bill bans unsolicited credit card cheques
Unsolicited credit card cheques are to be banned under a new Financial Services Bill announced today (November 18th) in the Queen's Speech.
Unsolicited credit card cheques are to be banned under a new Financial Services Bill announced today (November 18th) in the Queen's Speech.
Groups of consumers will also be able to bring to court actions against financial institutions under the new law.
Chief executive of Which? Peter Vicary-Smith called the ban of unsolicited credit card cheques "a welcome if overdue move".
He added that consumer watchdog would like to see additional measures introduced in the future, such as a ban on unsolicited increases to credit limits.
It is hoped the credit card cheque ban will stop card firms from encouraging consumers to borrow more than they can afford.
Mr Vicary-Smith also suggested that free and impartial national money guidance should be available to everyone in the UK.
Credit card cheques often do not have an interest-free period.
Written by Charlotte Stevens ©
