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"MBNA pre-empts ban on credit card cheques"

By Reno | April 9th, 2010 | General

Government and industry officials have expressed a great deal of concern with regards to the credit card cheques that many credit card providers send out to customers, even in cases where they have not been requested. Many people receive these cheques and fail to understand how they work, which can be misleading.

Concerns about the credit card cheques centre around the fact that some people use them to make a purchase or payment, and some even use them to put money from their credit card into their own bank accounts. However, many fail to realise that they are still being charged the high interest rate that they would if they had used their card.

Another major issue that has been highlighted when it comes to credit card cheques is that they can be intercepted whilst in transit and used by fraudsters. Because the consumer has not ordered the cheques and is therefore not expecting them it could be some time before they realise that they have become a victim of crime, and this could mean a lot of unnecessary trouble and stress for consumer when they finally do realise what has happened.

The government has been planning to ban the circulation of these cheques when they have not been requested by the customer, and one credit card giant, MBNA, has pre-empted a government ban on credit card cheques by announcing that it is going to stop issuing credit card cheques altogether.

Over recent years a huge number of these credit card cheques have been sent out to customers, with an astonishing fifty million cheques being circulated by credit card companies in the space of just three months last year. MBNA itself has said that last year it sent out tens of millions of these credit card cheques to its customers.

Tags: MBNA, cheque, credit card, finance

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