Credit card cheques 'have wreaked havoc on unsuspecting Brits'
July 7 2009
The government's plans to ban credit card cheques have been welcomed by one industry expert.
Andrew Hagger from Moneynet.co.uk has said the proposals to stop consumers being hit with unsolicited credit card cheques is a "welcome move".
He added that credit card cheques have "wreaked havoc" with "unsuspecting credit card customers" for a very long time as people saw them as an "easy way" of boosting a bank balance.
Mr Hagger stated that while a credit card cheque can offer a short-term fix, it can come at "a hefty price".
He explained: "A £500 cheque can easily spiral by an additional £150 in fees (three per cent) and interest (28 per cent APR) in just 12 months."
"Sending these cheques to people with little financial discipline or will power is akin to posting candy through a school letterbox," he added.
The UK payments association Apacs welcomed the move, adding it is in "nobody's interest" to lend to someone who cannot afford it.
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