Credit card cheques to be banned

Really2

http://news.bbc.co.uk/1/hi/business/8129555.stm

So we shall see if the asumptions that people were using cards to pay debt were true.
If so we should soon see a glut of repos and insolvancys.

Lotus-eater

I doubt the amount of people using these rarely was anything above tiny. Anyone with the smallest bit of money sense wouldn't use them.

ad9898_3

Really2 wrote: »

http://news.bbc.co.uk/1/hi/business/8129555.stm

So we shall see if the asumptions that people were using cards to pay debt were true.
If so we should soon see a glut of repos and insolvancys.

I always thought you had to be dumber than dumb to use these things anyway, the interest charged is higher and ther is no interest free period on them. As far as a glut of repo's and insolvencies, I don't really see it making any difference, you can draw cash from an ATM with a credit card and put the money into your account. If you're dumb enough to use credit card cheques, you're dumb enough to to that as well.:D

Really2

Very true. I supose in one way it is a good thing but then also like AD pointed out they will just withdraw the cash at an even higher cost.

They should make Debt payable by DD only, surely then it would cut fraud and things geting out of hand.

ad9898_3

Lotus-eater wrote: »

I doubt the amount of people using these rarely was anything above tiny. Anyone with the smallest bit of money sense wouldn't use them.

Not sure about that LE, look at the debt free board for a lesson in lack of money sense, it's the most popular board on the site. Also worth thinking about is there is so much personal debt in this country that if spread out, every adult owes £5000 on loans and cards, and that doesn't include mortgages. Money and sense went out of the window in this country 10 years ago, went the stigma of being in debt disappeared.

vivatifosi

Good riddance to the damn things. They are a ploy to make you read their marketing drivel. If you don't you could accidentally chuck a marketing letter in the bin (with address details torn off of course) with the bl**dy things attached to the back. Can you tell that I hate them?

JasonLVC

About time too. These things were just wrong on so many levels.

They encouraged you to spend (outside of the protection a credit card purchase would give you) and they were at risk of being intercepted by fraudsters.

The bigger problem is credit card companies constantly raising your credit limit every 6-12 months. If I want to raise my limit, I'll ask - inbstead they put it up to encourage me to get into more debt with them. I usually just call them and ask to put it back down to where it was.

....and what about introducing some laws to limit the number of cerdit cards you can actually have in the first place?. That's help folks a lot more than just banning cheques.

Lotus-eater

ad9898 wrote: »

Not sure about that LE, look at the debt free board for a lesson in lack of money sense, it's the most popular board on the site. Also worth thinking about is there is so much personal debt in this country that if spread out, every adult owes £5000 on loans and cards, and that doesn't include mortgages. Money and sense went out of the window in this country 10 years ago, went the stigma of being in debt disappeared.

I completely agree with you. I think banning these is a step in the right direction.
If people are still stupid enough to keep getting into debt after what has gone on, we need to try and slow it down somehow,

Burlesque_Babe

Have to say, I never really understood what these could be used for. I always just destroy and chuck them - are they used for paying tradesmen etc? Or were they allowed in mainstream shops

ad9898_3

Burlesque_Babe wrote: »

Have to say, I never really understood what these could be used for. I always just destroy and chuck them - are they used for paying tradesmen etc? Or were they allowed in mainstream shops

You could use them exactly the same as a normal cheque, you could even pay them to yourself into you own bank account.

JasonLVC

ad9898 wrote: »

You could use them exactly the same as a normal cheque, you could even pay them to yourself into you own bank account.

But they didn;t offer the same protection under the credit act as they were not seen as credit card purchases. MSE Martin bangs on about buying things on your credit card for protection but a cheque gave you diddly squat.

I'm not sure about this bit but I was under the impression the cheques were seen as cash advances and so were charged at different interest rates to that of a proprer credit card purchase?. Is that right?.