Don't cheque this out

Credit card cheques are evil.

That is my opinion anyway. if your credit card provider sends you any through the post this Christmas my advice is to do to them what you do to all junk mail: Rip it up and recycle it.

Most people out there simply do not understand what interest rate you will pay when you use them. It is bad enough that credit card rates are already around 16 pc, but credit card cheques are around 20 pc.

On top of this there is a handling fee or a minimum charge of £2 (though it has to be said that some providers, such as Halifax, do not charge this).

Thankfully, the Office of Fair Trading seems to want to act. It has launched an investigation into how consumers understand the terms and conditions on the cheques and is threatening to force companies to stamp the interest rate on the front.

Even so, I'm with the Consumers Association, which wants them scrapped outright.

Have you got any thoughts? Post your comments below. No URL necessary.

Comments

[Steve Bowen]

I have used a credit card cheque once. But my main problem is IDENTITY THEFT. I do everything in my power to prevent this. What has Abbey done? Despite repeated requests for them to stop. They persist in sending cheques with my statement which just happens to have my Name Address and card number on it.

[Anthony]

Junk mail doesn't stop there. Nowadays you receive paper credit cards stuck to letters with a customer no. from banks you've never dealt with, promising to send you the real one upon reception of the attached form signed by you. Only that the APR rate is... 39.9%!

[Anne Tunstall]

Has anyone fallen foul of the new bank penalty charges as yet. I have and boy do they hurt!!. I had the audacity to go £4.79 pence over my limit ( the bank added £1.21 in interest making £6.00 in total) for this I have been charged £60, yes sixty pounds for being overdrawn by £6.00 for eleven days. We are on a generally fixed income of just under £10K. This new charging is totally disproportionate and seems to be designed to penalise those on low incomes who are unable to raise any extra funds to cover such emergencies the most.
Interestingly I have applied for small temporary extensions to our overdraft before but have always been refused as ' you are not earning sufficient', to extend by even a few pounds for a few days so they charge you excessively anyway and you end up paying far in excess of what you would have paid if they had agreed to your approach, but then again they wouldn't have made as much money out of you would they?

[Jim]

Halifax credit card cheques can be extremely useful.
As soon as my unsolicited cheques arrive I put them in the shredder and immediately obtain free bedding for my daughter's hamster.
Thank you Halifax!!!

[Charlie]

I was defrauded when a CC cheque was intercepted and used to pay money into a bank account. When I noticed it on the statement the company sent me a photocopy of the cashed cheque and they clearly hadn't even looked at the signature. When I asked if they will chase it up they told me to contact the police if I thought that a crime had been committed. That is why they charge so much insurance. They still keep sending cheques to me.

[Mike Godfrey]

I've never used any cheques sent to me by my credit card companies as I failed to see the point of them and consumers should be aware, there no such thing as a free meal. Virtually every financial deal involve some kind of legal scam to gouge money from you. Interest free deals for 6 or 12 months do not exist. Furniture companies up the cost of the goods and credit card companies use small print to catch you out. Buyer's beware as the financial marketeers are masters at dreaming up new stunts to trap you.

[Peter Palfrey]

I think that there's a place for Credit Cards; I've been using one for Years. - The byword is RESPONSIBLY. Pay your card Right-Off each Month,..... No Probs, - useful, even.

But these Credit Card CHEQUES...... I've received So-Many over the Past 3 Years or so, - there just HAD to be a heavy Penalty to Pay.

Never-Used One; Never Will; Unconditional BAN gets my Vote.

[ally]

yeah, right, get rid of all credit cards now and, erm...all money! guevara was right. you guys are wasting your time...

[Bob Yates]

I totally agree mate,