Credit card cheques to be banned

System

I keep getting these in the post and it's annoying having to shred them as they're printed on quite thick paper/card.

cogito

If I ever received these evil things, I would ring my card issuer and tell them that if they sent any more, I would cancel my card. That worked.

ToMoCo

Quite disappointed with this.

The cheques usually have some sort of offer like 9 months 0% (2.5% fee) which is cheap money.

Recently used one with no fee and lifetime circa 3.4% applied to balance.

ad9898_3

JasonLVC wrote: »

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?.

Your entire post is correct, thats why their only decent use is as kindling.

pizzagirl

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'm glad that you seem to be feeling a bit better today. And that the giant turnips appear to have stopped pursuing you. It's probably best if you stay out of the sun today just in case the giant turnips make a reappearance.........


http://forums.moneysavingexpert.com/...html?t=1788919

"I am personally sick of it. It is like talking to a room of sensible people then an aggressive turnips run in to the room one after another."

Really2

pizzagirl wrote: »

I'm glad that you seem to be feeling a bit better today. And that the giant turnips appear to have stopped pursuing you. It's probably best if you stay out of the sun today just in case the giant turnips make a reappearance.........


http://forums.moneysavingexpert.com/...html?t=1788919

"I am personally sick of it. It is like talking to a room of sensible people then an aggressive turnips run in to the room one after another."

metaphor and your second post on it sockie.
Bye

purch

At a stroke, all the problems are solved. :eek:

No one can say this Government isn't pro-active now !!!!!

lemonjelly

I doubt we'll see a glut of repo's/insolvency, as it does take time to work through the system to get to this stage.

I'm also wondering how the bankruptcy figures will start to look since the Debt Relief Order was introduced. I have a friend who is an intermediary doing these, and advises me that they are picking up, and the Official Receivers are ultra efficient in dealing with them. Personally I think DRO's are a good thing, but don't doubt they'll be used as a spin. I'd like to know how they'll be reported - as part of the bankruptcy figures, or seperate?

Financial literacy nationwide is nowhere near what it should be. So many people do not have the nous/experience of use of financial products. This is a regionalised problem too.

In example, until recently, when giro's were withdrawn, and benefits had to be paid into bank accounts, 80% of benefit claimants did not have a bank account.

Over 80% of social landlord tenants do not have insurance products.

The liat goes on.

Thing is, a lack of experience of using bank accounts, loans, cards etc means that so many of the population are vulnerable to exploitation by salespeople/misleading adverts/too good to be true offers etc.

By the way Ad, if the average debt was only £5k, we wouldn't have a problem. I deal with debt advice, and in my experience, not including mortgages the average is closer to £25k. In fact, it is not a juicy/interesting case unless you start getting towards £100k. How wrong is that?

Degenerate

ToMoCo wrote: »

Quite disappointed with this.

The cheques usually have some sort of offer like 9 months 0% (2.5% fee) which is cheap money.

Recently used one with no fee and lifetime circa 3.4% applied to balance.

Indeed, one of the heaviest promoters was MBNA, with whom they usually incurred the same fee and interest as whatever balance transfer offer they were currently offering. With those terms they could be a rather good value way to borrow. At cash withdrawal rates they are of course dreadful value.

I certainly do not welcome the Government restricting what facilities I can be offered simply because some people aren't capable of engaging their brains or resisting temptation.

I rather like the automatic credit increases too - they should be an opt-in thing.

torontoboy45

I'll be sorry to see them go.

with a 15 month IR-free deal from virgin the cheques were the easiest way to deposit their cash into my high-interest account (when there was such a thing) for a nice, long stooze.