Related Credit Card Article

"Credit card firms try to tempt consumers into expensive cash withdrawals"

By admin | June 30th, 2008 | Credit Cards

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.

Recent news:

• Are price comparison sites likely to get you the best deal?
• Why is Barclaycard trying to increase consumers’ financial woes?
• Cheque use in UK continues to decline
• Are you a Rate Tart?
• Rejected Credit Card Applications – What Now?
• Useful Tips on Avoiding ID Theft

Tags: cash advance

Related Articles:

• Cheque use in UK continues to decline

  Recent reports have shown how the use of cheques in the UK is continuing to decline, further fuelled by a number of leading retailers now placing a ban on the use of cheques, branding them time consuming and costly to process given the reduced popularity of cheques as a method of payment. Paying by cheque...

• 66 percent cash withdrawal fee hike from Egg

  Internet banking giant Egg has once again found itself at the centre of controversy over its credit card division, after it was revealed that the lender has hiked its cash withdrawal fees on credit cards by a whopping 66 percent recently. With the base interest rate plummeting and credit card companies under pressure to keep...

• Annual fees could be introduced by more credit card firms

  There are concerns that a rising number of credit card firms could start introducing annual or monthly fees for their credit card customers in order to make up for lost revenue resulting from government and regulatory crackdowns. One major credit card provider, Egg, has already launched a new card with a £1 a month fee,...

• John Lewis raises credit card rates

  UK department store John Lewis has increased the interest rate on its Partnership credit card, joining the many others credit card providers that have been hiking up the rates on their cards over the past year. With the global credit crunch and rising bills already hitting consumer’s pockets hard rising credit card and borrowing costs...

• John Lewis credit card follows in footsteps of other providers

  Over recent months reports have highlighted how a number of credit card providers in the UK have hiked up their headline credit card rates, as well as various fees and charges that are associated with the credit card, leaving borrowers to pay more for their borrowing at a time when household budgets are already overstretched...

Other Recent Articles

Finding the right credit card for Christmas shopping

Although it may seem a while before Christmas swings around it often comes around far faster than we imagine, and...

By Reno | September 9, 2010 | Read More

New credit card launched by supermarket giant

Consumers in the UK have a wide range of credit cards to choose from these days, and there are cards...

By Reno | September 9, 2010 | Read More

Interest free purchases with the Tesco Clubcard credit card

Making purchases on a credit card can work out to be very costly for those that have high interest credit...

By Reno | September 9, 2010 | Read More

Generous interest free period on balance transfers from Natwest

Many consumers are keen to save money on their borrowing, such as on their credit card borrowing, but with credit...

By Reno | September 9, 2010 | Read More

Improvements to credit card lending

According to recent reports July saw improvements when it came to credit card lending in the UK, which many believe...

By Reno | September 2, 2010 | Read More