Consumers warned over credit card cheques
(06 December 2005)

Consumers should not be tempted to use unsolicited cheque books sent to them by their credit card firms, More Than has said.

The insurer said that credit card users should be wary of the cheques, as many do not realise that card companies often charge a higher rate of interest on credit cheques than they do on conventional card purchases. More Than has vowed not to send unsolicited books to their customers.

As an alternative, those who need to cash quickly can turn to a payday loan - a cash advance which provides customers a short, quick injection of money which can be paid back once your wages arrive at the end of the month.

Graham Hollebon, head of personal finance at More Than said that the card firms were reckless in their behaviour: "It is irresponsible for credit card providers to send their customers unsolicited credit card cheques, especially if they encourage them in marketing literature to use them inappropriately.


"We are strongly of the view that the industry should clamp down on the unsolicited issue of cheques and the high rates of interest and other charges levied on them."

Some lenders charge a handling fee for the cheques, whilst others do not provide the payment protection over £100 that credit cards do.

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