Credit card cheques costly to consumers
Credit card cheques are expensive to use, and consumers need better protection from providers charges, the Office of Fair Trading has claimed.
Using credit card cheques, consumers can draw money out or make purchases, yet purchases made with a cheque linked to a credit card will often cost consumers more, and consumers may not be aware of the charges they face, according to the OFT.
The OFT has claimed purchases with a credit card cheque can face higher interest rates, and there is often no interest free period as interest is charged as soon as the cheque is processed.
And the OFT called for more information to be given to consumers on the charges they face if they use credit card cheques.
OFT chief executive John Fingleton said: “Consumers need good quality information about the costs and other potential disadvantages of credit card cheques before they consider using them.”