Credit card cheques - name and shame

sarahmarwick

I have had a Virgin Credit card for approximately 1 year. They keep sending me credit card cheques. There are usually 2 on each statement, and then about once every 2 months they send me a letter containing 4 cheques.

I have asked them to stop sending me these on at least 3 occasions, Most recently 2 weeks ago. I have done this for several reasons -

a. I think its really bad practice to send these out without me having requested them

b. They are a terrible way of using credit cards and they are trying to sell them as being 'an easy way to do balance transfers' which I think is appalling.

c. I have no idea when they will arrive as its random, and they are sent in the regular mail - someone cold easily intercept my mail and steal them, an easy way to do identity fraud.

d. its a pain to have to shred these all the time.

Now, this morning I have recieved - wait for it - a WHOLE BOOK of 10 cheques.

Any suggestions what to do with them?

And when will they stop sending them???? (I have phoned them again this morning and they have said it could take up to 8 weeks for them to stop sending them)

markmc999

While it is annoying I just shred them. After all its costing THEM money to send them out not us to receive them.

If some fraudulant transactions do occur on your account simply report them as normal and you should be refunded immediatley

The_Boss

You're lucky. In 3 years MBNA havent sent me ANY cheques and I've even requested them on a couple of occasions.

neil40

Ive still got Capital one cheques that i use that were sent in 2004.They are charged at my standard interest rate with no fee.This means i can use them as an interest free loan!.

They no longer do these but merit the ones they have sent out....Neil

sarahmarwick

Are you sure about the bit about using them as an interest free loan?

Usually they are treated in the same way as a cash advance - and therefore charged interest from day 1, often at a higher rate, making it a very expensive way to pay for things. These ones they are sending to me are being marketed as being an easy way to pay bills, or to use the card in shop that doesn't accept credit cards - but I think most people won't read the small print and realise that its a very poor way to use a credit card. They do also say they can be used as a way of setting up a balance transfer - but thats at the standard rate for BTs and you may as well do it directly.

Also worth bearing in mind - anything bought/paid for using one of these cheques does not count as a credit card purchase under the Consumer credit Act, and therefore you also don't get the usual protection that buying with a card gives you.

I think they are primarily sending them out in the hope that people will use them thinking its the same as a credit card, and not reading the small print that gives the details. I feel they should not be sent out unless you request them - but even then, I can't think of any real reason why anyone should need them.

Moggles_2

They are charged at my standard interest rate with no fee. This means i can use them as an interest free loan!.

If they are charged at your standard interest rate, they are not interest free.

The only way to minimise the interest payable is to settle the resulting credit card bill a.s.a.p. or shift the balance to a 0% or low interest balance transfer card.

sarahmarwick

I suspect that 'charged at the usual interest rate' means nothing other than 'not charged at a higher cash advance interest rate that we would usually charge for these'. But almost certainly, even so, the interest will be charged immediately, with no interest free period like you usually get with most purchases.

Read the small print VERY carefully.

neil40

The cheques are charged at standard purchase rate without a fee if you dont pay the balance in full at the end of month.I can get round this by writing another cheque to myself after the cut off date.


E.G:I start off with writing a £1000 cheque to myself.When the bill comes, i write another cheque to myself for say £850.00- pay in into my account.When it clears, i make up the difference with cash and pay the £1000 bill off without incurring any interest.

On the cheques supplied, they have codes - p=charged at purchase rate without fee. c= charged at cash rate with fee(interest charged as soon as they are in your bank!)- these, i bin immediately.

sarahmarwick

Not really sure I understand the logic behind why you would do this to be honest?

Seems incredibly complicated and risky - likely to end in tears (or at least in the payment of interest if you aren't very on the ball).

mistyarthur

capital one have so far sent me 4 cheque books telling me they are great to use and I've only had the card a year!!!

Moggles_2

The cheques are charged at standard purchase rate without a fee if you dont pay the balance in full at the end of month. I can get round this by writing another cheque to myself after the cut off date.

All is clear now, Neil

Your Capital One cheques are treated as purchase transactions. Providing you settle your monthly credit card bill in full and on time, you incur no interest charges.

Offers like that don't come along very often. Also, it's unusual for a credit card company to honour special rates two years after the promotion has ended. Most special offers have a cut-off date embedded somewhere in the accompanying Ts & Cs.

It sounds as though you've got the timing to a fine art and have milked the offer for all it's worth!