Credit Card Cheques

rayday2

I applied (via quidco) for a Vanquis card to improve my credit history (or start to) for the purposes of remortgaging in the future. Its not a problem I got one with a £500 limit and hefty interest. I don't use it often but when I do when I go home I immediately transfer money accross and actually leave it in credit in case, I have zero trust in them.

Anyway today they sent me four blank cheques with lovely butterflies all over the letter etc promising to make my Summer wonderful.

Thing is I am sure in the news recently I thought that this was considered a bad practice and the government were putting a stop to this. Anyone know before I shred them, if they are doing wrong I am more than glad to take relevant actions.

davetrousers

Just shred them and forget about it.

Jesthar

They are indeed bad things, and the government is going to ban companies sending them out unrequested:

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

Which means this is probably Vanquis trying tempt people into extra debt before the tactic becomes illegal... :rolleyes:

Incidentally, congratulations on starting to rebuild your credit history!

rayday2

It really is irresonponsible on several levels, the first which annoyed me was it was plastered on the envelope four ways to get more cash and Vanquis bank on the enevelope - so anyone who was not so honest could have cashed the things! It even told them my credit limit in the letter to make it even easier for them.

Darn I wish they were actually breaking some rules now - so for now I will shred them.

We never wanted credit again as a couple all we want is a decent mortgage rate. Vanquis are not the best company either they make it very hard to keep an eye on your account I pity people who see companies like this as the answer without the knowledge of this board behind them.

nomorehandbags

i hate these things!!!!! - virgin keep sending to me and i just keep shreading -yo know what also does my head in credit card companies uping your limit whenyou have not even requested it!!!

BeautyandtheBeast_3

I have so say i have done many stupid things in mytime but thankfully i have never sucummbed to CC Cheques. They are EVIL

david_hellier

davetrousers wrote: »

Just shred them and forget about it.

Then close the account.

Jesthar

david_hellier wrote: »

Then close the account.

OP is using the card to start rebuilding their credit rating, paying off in full every time they use it...

rog2

Jesthar wrote: »

OP is using the card to start rebuilding their credit rating, paying off in full every time they use it...

And Vanquis don't like people to do this because they don't get to charge them interest. They advertise a 'typical apr' of 39.9%, but, in reality, their TIER E interest rate, applicable to most new cardholders with 'adverse' credit history, is a wopping 59.4%.
The 'cheques' on the other hand, can earn Vanquis 69.51% apr - no wonder they are keen to send them to their customers. :rolleyes:

Bin them, rayday :T :T

PS - nice to see you, and dave - hope you are well.

rayday2

I am well thanks, started work in a school, life got busy and now I have 6 weeks to catch breath and thought I should show my face around here!

I actually did something better than binning my cheques they are currently being pasted onto a paper mache savings pig - sort of a bit of poetic justice there I think!

It is horrific the interest rates but I will stick with it until about two months before my remortgage then I will close the account, claim my credit balance back and see if we can get a better deal with the Chelsea they promised that we could automatically be classed as high street customers next time but since then things went a bit belly up in the mortgage world so I am fingers crossed we can still be treated as high street borrowers rather than bad credit customers - this was just one little tactic to help along the way.

rog2

rayday2 wrote: »

I actually did something better than binning my cheques they are currently being pasted onto a paper mache savings pig - sort of a bit of poetic justice there I think!

I do like that, rayday. :rotfl: :rotfl:

Good luck with 'repairing your credit rating' - I have a 'prepay' cashplus 'Gold' Mastercard - costs me £4.95 a month with unlimited (subject to balance) usage. The only reason I mention this is that they operate a 'credit builder' service, whereby they 'lend' you a sum of money, interest free, then, immediately take it back - in effect no money changes hands, other than on paper. This 'loan' is registered on your crf as paid satisfactorily. Could be of interest.