Ban on Credit Card Cheques

It looks like the Government are taking action to ban credit card cheques.

These are the blank cheques credit card issuers send to their customers giving them another way to spend money on their credit card account and getting further into debt then they intend to.
The Government have been under pressure for quite some time to ban these cheques.
Earlier this year they announced they would stop unsolicited cheques being sent out but that customers could opt in to use them.
The blank cheques are proving controversial because the charges for using them are not clear, with the user incurring a handling charge for each cheque used, the interest free period does not apply and the usual protection of buying with your credit card does not apply either.

The level of debt is rising with the recession, up to nearly £55bn in the UK and the Government wants the credit card companies and other lenders to take more responsibilty with its customers.

Research shows that 1 in 5 people have had their credit card limit raised within the last year without asking for it.

The government are also looking into the charges and fees charged by credit card companies.