Credit card cheques outlawed as part of govt crackdown

vet8

This is typical of this damn government, they bring in regulation and it is the wrong regulation. I only use CC cheques if I get offered a 0% deal and I am sure any sane adult should be sensible enough to realise that they are expensive to use. You don't want them, burn them.

As for the idea of raising minimum payments, that is fine in theory, it helps to encourage people to pay off the debt faster, but those who are really struggling are probably only paying the minimum as that is all they can afford. If they have to pay more they will be unable to - very helpful.

What the government should be doing with its financial regulations are IMHO:
1) Make all banks process payments received on the same day instead of taking 4 days or longer in some circumstances.
2) Make it illegal for banks etc. to charge extortionate rates of interest, CC companies are charging 30% or more when the base rate is 0.5%.
3) Force banks to stop their ludicrous overcharging - £38 for a bounced DD for example.

If they brought in these measures they would really help hard pressed consumers and give them a chance to sort themselves out instead of being pushed further and further under by the banks.

NickX

Hmmm, I like Credit Card Cheques, especially when they are 0% interest and NO fee, which I have had many times in the past.

I also prefer lower monthly payments, so I can keep more money in an interest bearing savings accounts.

Have these people no consideration for the poor impoverished stoozer :mad:

HockeyDuo8083

YAY! I shredded my Smile cheques as soon as they came through. Funnily enough they arrived before my CC did...mmmmm

LongTermLurker

NickX wrote: »

Hmmm, I like Credit Card Cheques, especially when they are 0% interest and NO fee, which I have had many times in the past.

I also prefer lower monthly payments, so I can keep more money in an interest bearing savings accounts.

Have these people no consideration for the poor impoverished stoozer :mad:

Exactly, Nick - "protecting the people" is all well and good but all it does is make it harder for "the people" to get a good deal :mad:

They don't need banning, they just need to come with a prominent wealth warning (I do agree with the banning of unsolicited cheques though, mainly because they never come with good - ie zero - rates)

Rock_Bottom

The news editor for this subject is called Guy Anker .. I'm glad I don't have a name like that.

Bit off topic but it was just a thought.

td_007

Wonder how people can fight the temptation to make simple phone call to inform the card people that they don't want any cheques but are tempted to use those cheques to splash on a big screen plasma TV?

bert&ernie

Hold on a second guys. The title of this thread and the headline of the many associated news stories is quite misleading. The government are proposing a ban on unsolicited credit card cheques.

Here is the relevant text from the white paper:

2.3.2 Unsolicited credit card cheques
There have been concerns for some time that the practice of sending out unsolicited
credit card cheques to customers could tempt people to over-borrow when they may
already be in financial distress. Earlier this year, the Government announced that it would
legislate to ban this practice. We propose that the ban would prevent the credit card
issuer sending out cheques except in response to a specific request from a customer at a
particular time. The credit card issuer would be able to offer cheques to the customer but

would require the customer to opt into receiving them.

So nobody who actually wants cheques needs to get their knickers in a twist.

Also, bear in mind that this is a white paper - the industry and other stakeholders will no doubt respond and the government may or may not actually introduce some legalisation, which in turn may or may not resemble the contents of the white paper. The various card issuers will interpret said legislation based on their own legal advice and will change their business practice accordingly.

Having worked on a number of regulatory projects in the industry, the only thing that I can say with any certainty is that the "devil is in the detail" and that the ultimate practical effect cannot be predicted at this point.

Incidentally, I did find it amusing to see certain individuals complaining of "nanny state" intervention by the government - the very same individuals who vociferously defend a consumer's right to protection under the CCA.

never-in-doubt

Rock_Bottom wrote: »

The news editor for this subject is called Guy Anker .. I'm glad I don't have a name like that.

Bit off topic but it was just a thought.

Mate, could have been worse - linke Hugh Anker :rotfl::rotfl::rotfl:

never-in-doubt

bert&ernie wrote: »

Hold on a second guys. The title of this thread and the headline of the many associated news stories is quite misleading. The government are proposing a ban on unsolicited credit card cheques.

Here is the relevant text from the white paper:
.

Well spotted Bert/Ernie - nice one..... Reliable as always for grinding out the real truth (you should be the next Watchdog host!) :T:T

chattychappy

Nah if they want to send them out, then let them do it without restriction. OK... if you tell them not to, then that's different... But I really don't need the government to protect me from myself.

And I certainly don't need groups of civil servants and others getting together in huddles and spending my tax money on working out new ways to control me.