As if households in the UK haven’t got it hard enough when it comes to their finances, it appears that some credit card firms are playing on the financial instability of their customers by trying to entice them into taking out cash from a cash point using their credit card. The credit card providers lead customers to think that this is a good idea by harping on about how they can get their hands on instant cash, but do little to bring to their attention the fact that they will be charged a fortune for using their card to withdraw cash.

Some firms, such as Barclays, have been found to be contacting customers by mail, with flyers offering them instant cash when they use their cards to take money from a machine. Some have increased the cash withdrawal limits available to consumers, which enables the cardholder to take out even more money on their credit card, thus plunging them even deeper into debt. And to top it all the consumers is then hit with expensive cash withdrawal fees and high rates of interest, even if they plan to repay the money within the month.

Recently customers with the JJB MasterCard were contacted and received a cheque with their names already filled in. By banking the cheque they could see the funds transferred from their credit cards into their bank accounts, but would be charged the same fees and rates as if they had made a cash withdrawal on their credit cards.

Industry officials are now urging consumers to think very carefully before falling for this ploy, stating that the credit card firms have their own best interests at heart, and are not offering increased cash withdrawal limits from the kindness of their heart but to make additional profit from the fees and interest that they can charge.

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