MSE News: 'Irresponsible' Asda pushes costly credit card cash for Christmas

Former_MSE_Helen

"Asda is encouraging credit card customers to use £5-a-go, plus interest, ATM withdrawals..."

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'Irresponsible' Asda pushes costly credit card cash for Christmas

jobdone1

This is a joke, this country is near bankrupt mainly due to irresponsible lending the government said we all must get a grip and yet the fsa are still allowing companies and banks to push irresponsible lending onto the consumer and this is a prime example of this.

If we continue to live for today and lets forget tomorrow our younger generation will be living in a third would country.

We all must stem the flow of storing up problems for our young it is totally irresponsible.

dalesrider

jobdone1 wrote: »

This is a joke, this country is near bankrupt mainly due to irresponsible lending the government said we all must get a grip and yet the fsa are still allowing companies and banks to push irresponsible lending onto the consumer and this is a prime example of this..

Quite clear in the T/C about the charges.

Of course its the Gov's fault that people spend money they don't have. :rotfl:

Everybody has a choice to do what they want.

alfred64

Most credit card issuers do this. Sygma is one of the more expensive ones when it comes to withdrawing cash, yet they are always encouraging their customers to do so.

Gordon_Hose

Irresponsible for the card issuers to allow this sort of thing.

Irresponsible for consumers to withdraw cash on a credit card.

Banks have to make money, they are a business at the end of the day. Consumers also have to take responsibility for being stupid enough to think that withdrawing cash on a credit card is OK.

Irresponsible lending is only facilitated by irresponsible borrowing.

ChopinonaBudget

What the flyer also fails to mention is that interest rates are paid off in the order in which they are accrued. In other words, if you owe £1000 at 14.9% then spend 100 at 27%, but take a year to clear £1000 (worse if you're only ever paying the minimum), then you are paying 27% continually on that £100 for all of that time.
Unless that rule was disallowed? Somebody correct me if I'm wrong?
And let's face it, anybody who is in the desperate position of needing cash on a credit card is highly unlikely to have a nice clean £0 paid-off-in-full balance at the beginning of each month...

ChopinonaBudget

Gordon_Hose wrote: »

Irresponsible for consumers to withdraw cash on a credit card.

Sadly, not everybody in this world is financially literate enough to understand why this is a bad thing, unless it is made abundantly clearly them in simple, clean, and clear English.

jobdone1

dalesrider wrote: »

Quite clear in the T/C about the charges.

Of course its the Gov's fault that people spend money they don't have. :rotfl:

Everybody has a choice to do what they want.

Lead by example springs to mind

aldredd

dalesrider wrote: »

Quite clear in the T/C about the charges.

The issue being raised here is not having the facility available - I think under (very) certain circumstances, it's a good facility to have.

It's the morality of encouraging people to take out high-interest loans at Christmas (but hey, this is bank, since when has morality played a part?), and that they're not making the financial implication of doing so clear on their literature - not a moral issue, but a 'legal' one as pointed out by Martin

aldredd

ChopinonaBudget wrote: »

What the flyer also fails to mention is that interest rates are paid off in the order in which they are accrued. In other words, if you owe £1000 at 14.9% then spend 100 at 27%, but take a year to clear £1000 (worse if you're only ever paying the minimum), then you are paying 27% continually on that £100 for all of that time.

I thought it was always highest interest first now - no exceptions.
Happy to be corrected though.

callum9999

As ASDA pointed out, it was Sygma who sent this out - not ASDA. (I always get the same thing from my other Sygma issued cards around Christmas and at other random times - like the Royal wedding)

As you published that response, you clearly read it. In which case why does your headline state that Asda is the one pushing it? I know over the last year or so the MSE headlines have become sensationalised tabloid-style, but surely this is simply a lie?