Credit Card Cheques To Be Banned

(BBC) – CREDIT CARD CHEQUES are set to be banned, and a new post is to be created to help ripped-off consumers get their money back, the government has announced.

Measures to assist people facing difficulties with debt and at risk from rogue traders are also in the plans.

Outstanding credit card debt in the UK has reached £54.4bn — a figure that has started to rise in recent months after falling back in the course of last year.

The government plans, laid out in a White Paper, include the creation of a Consumer Advocate, whom will raise awareness of consumer issues and take cases of ‘national importance’ to court on behalf of groups of consumers seeking compensation and refunds.

Credit card cheques are blank cheques sent out by card issuers to their customers, often with a statement, giving them an alternative way to spend on their card account.

They have proved to be controversial, because consumers incur handling fees for using them; there is no interest-free period as seen with a card; and they do not command the same level of protection for customers if things go wrong.

The government has been under pressure for some time to ban them, announcing earlier in the year that it would ban firms from sending out unsolicited credit card cheques. It now says these will be banned completely.


One Response

  1. […] … (02/07/2009) – Credit Card Cheques To Be Banned […]

Comments are closed.

%d bloggers like this: