Last year, credit card companies tried to entice consumers into spending even more by sending out 300million unsolicited credit card cheques. 50% of all customers with a credit card were sent the cheques even though only 2% asked for them – a survey revealed.
The average interest rate on a credit card then was 15.7% but the equivalent rate on a credit card cheque was 24.4% according to uSwitch, which carried out the poll. These cheques, with their inflated interest rate and extra handling charges, make the industry about £660million annually.
Though the Office of Fair Trading last years called for the practice of sending out unsolicited cheques to be banned, they are still being send out – i’ve got ‘mine’ two weeks ago.
If you receive unsolicited credit card cheques, they are NOT Christmas presents from your card issuers; we all know who stands to gain if you overstretch yourself during the festive season.
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