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Credit Card Cheques To Be Banned

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http://news.bbc.co.uk/1/hi/business/8129555.stm

Credit card cheques will be banned as part of government plans for consumer protection due to be unveiled.

Measures to assist people facing difficulties with debt and at risk from rogue traders during the recession are also expected to be announced.

Figures from the Bank of England show that UK residents owe £233bn on credit cards, overdrafts and other loans.

The government will unveil its plans - to be laid out in a White Paper - at 0930 BST.

The government could propose action to make lending practices more responsible, with concerns raised about debt levels during the recession.

Research from the price comparison website, Uswitch, suggested one in five people saw their credit card limit increased over the last 12 months without them asking for it.

Consumer groups have also called for more help for consumers to resolve issues with businesses which they believe have ripped them off.

Citizens Advice wants a Consumer Ombudsman who would resolve individual's complaints and take command of group action by consumers.

Interesting......

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Credit cards = misery to the masses.

Been there, done that. Wasn't nice.

Not a unique experience.

This legislation is a bit late in the day, isn't it?

I think the 'Grim Ripper' has been and gone.

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Not a unique experience.

This legislation is a bit late in the day, isn't it?

I think the 'Grim Ripper' has been and gone.

Not if you still owe more than the interest payment alone allows you to live.

Chasm with no way out...

Edited by pie-eater

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I keep 1 CC for emergencies; that's it.

Balance is zero and always will be unless an emergency presents itself.

My kids will be taught never to have one other than for the same purpose.

I used to work with a bloke that used to shop on his CC and was fooled into the trap that it was free money. He ended up with 27k worth of their dirty debt and killed himself.

BC still had the cheek to chase his widow for the moeny with speculative letters. Scum.

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I know I must be dumb... but what the hell is a credit card cheque?

credit card = yep understand that, still don't use em

cheque = yep understand that too.

Were people writing cheques drawing from a credit card account or something?

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A CC cheque simply acts the same way as your bank cheque.

The rub is that they charge your account over (usually) the normal amount.

A ploy to make you spend, and make the options larger so they bang you more.

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I know I must be dumb... but what the hell is a credit card cheque?

credit card = yep understand that, still don't use em

cheque = yep understand that too.

Were people writing cheques drawing from a credit card account or something?

They send you some blank cheques that you can deposit into your bank account and spend the money and the amount you write on the cheque is added to the money you owe the credit card company.

It's like magic really.

Magic money, that's what it is.

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I know I must be dumb... but what the hell is a credit card cheque?

credit card = yep understand that, still don't use em

cheque = yep understand that too.

Were people writing cheques drawing from a credit card account or something?

Attached to your statement will frequently be 4 or 5 'cheques'. If you use them you are charged interest and I believe a cash fee too.

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Were people writing cheques drawing from a credit card account or something?

Yes.

You had a card for a while an then in the post you'd find a cheque for 15 grand or some such.

Total invite to fraud, with enough cards you could effectively use it as income/salary for a number of years before being swamped by the charges. Which is I expect what a lot of people did.

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What are credit card cheques?

The endless cheques that a Credit Card Company sends you looking for you to spend on them and they earn significantly higher interest rates than standard transactions; believe they can be used in the same way as normal cheques from your bank? MBNA, are one abuser of this system.

Edited by The_Stars_Are_Aligning

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I keep 1 CC for emergencies; that's it.

Balance is zero and always will be unless an emergency presents itself.

My kids will be taught never to have one other than for the same purpose.

They can have their uses. I have several - each is paid in full every month by direct debit. It allows me to separate out spending for work, on the internet, etc. to make expenses easier to process, fraud easier to spot. Additionally it can be sensible to buy some expensive items such as electronics on a CC for the additional insurance.

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They send you some blank cheques that you can deposit into your bank account and spend the money and the amount you write on the cheque is added to the money you owe the credit card company.

It's like magic really.

Magic money, that's what it is.

right... I see.

So its a way of filling up your current account with ready cash, to pay for whatever, mortgage payment, clearing overdraft etc. It just runs the credit card balance up to its limit, and charges whopping great interest.

God almighty! No wonder we're in so much trouble. Now they're trying to shut the stable door are they?

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They can have their uses. I have several - each is paid in full every month by direct debit. It allows me to separate out spending for work, on the internet, etc. to make expenses easier to process, fraud easier to spot. Additionally it can be sensible to buy some expensive items such as electronics on a CC for the additional insurance.

Oh, I agree, they're useful.

But their purpose is to fool the normal person into getting into debt, and paying their 19.9%apr + rates.

**Shudder**

Too easy

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I think the company should send me a cheque for a new shredder, I get these things every month. Some are ready made out for £500 or so.... 'Give yourself a cash boost'. Immoral.

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The legitimate idea for them was when you wanted to use your credit card to pay someone that couldn't take cards, perhaps like a tradesman. As they don't get to charge the recipient of the money the transaction fee, they charge you instead. So far fair enough.

But what they are particularly useful for is when you need to use one credit card to pay another. Credit card cheques are easier than using one to withdraw cash and using that to pay the other bill...

Banning them because they can be used to start debt problems is still a bit like banning petrol because it can be used to start fires. Or, perhaps more appropriately to this case, a bit like banning stable doors because they can be shut after horses have bolted.

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They can have their uses. I have several - each is paid in full every month by direct debit. It allows me to separate out spending for work, on the internet, etc. to make expenses easier to process, fraud easier to spot. Additionally it can be sensible to buy some expensive items such as electronics on a CC for the additional insurance.

I only keep the one. But it's extremely convenient to have the direct debit coming out of the current account just after the paycheque goes in. And the cashback I get on it is a minor bonus :)

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I think the company should send me a cheque for a new shredder, I get these things every month. Some are ready made out for £500 or so.... 'Give yourself a cash boost'. Immoral.

I wonder why?

I've never been sent such things in my life. Is that because my creditcard provider is more honest than yours, or because my spending patterns tell them it would be pointless to try that trick on me?

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Guest sillybear2
They can have their uses. I have several - each is paid in full every month by direct debit. It allows me to separate out spending for work, on the internet, etc. to make expenses easier to process, fraud easier to spot. Additionally it can be sensible to buy some expensive items such as electronics on a CC for the additional insurance.

It should be noted you are not covered by the normal statutory consumer protection in the Consumer Credit Act when using credit card cheques. They are usually treated as a cash advance too, so much higher rates and different repayment terms.

Banning them because they can be used to start debt problems is still a bit like banning petrol because it can be used to start fires. Or, perhaps more appropriately to this case, a bit like banning stable doors because they can be shut after horses have bolted.

I'm not sure they're banning them as such, I bet you will still be able to obtain them on request. What they're putting a stop to is the mass mailing of unsolicited cheques every other month, which is akin to posting petrol coupons to pyromaniacs.

Edited by sillybear2

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I only keep the one. But it's extremely convenient to have the direct debit coming out of the current account just after the paycheque goes in. And the cashback I get on it is a minor bonus :)

I never understand people who say they don't have credit cards - if I am using a card (apart from in an ATM's) it's always ever only my credit card. This is for the simple reason that in the event of fraud it's not your money or your bank account at risk - it's the credit card companies problem to sort out. I wouldn't want to be making the calls to sort out the fact that somebody has emptied my bank account, but giving the CC company a ring - easy.

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Attached to your statement will frequently be 4 or 5 'cheques'. If you use them you are charged interest and I believe a cash fee too.

Credit card cheque theft....another name for it.

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