February 7, 2012

Beware of credit cards cheques this Christmas.

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.

Related posts:

  1. Unsolicited Credit Limit Increases May Be Banned
  2. Loyalty Cards And Your Financial Freedom
  3. Clydesdale & Yorkshire Banks Launch 0% Credit Cards
  4. Get Your Interest Rate Reduced
  5. What’s The Big Deal About Debit Cards?
  6. Virgin Atlantic Ramps Up Credit Card Interest Rate To 27.9%!!
  7. Credit Card Interest Rates Hit 18.9% High

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