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Peter Black and South Wales West Liberal DemocratsRepresenting Aberavon, Bridgend, Gower, Neath, Ogmore, Port Talbot, and Swansea |
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AM attacks credit card cheques as 'irresponsible lending
February 4, 2009 12:00 AM
The Welsh Liberal Democrat Assembly Member for South Wales West, Peter Black, has joined with organisations such as 'Which?' in condemning the unsolicited mailing of credit card cheques to customers.
Mr. Black said:
"Ever since credit-card companies were stopped from levying unfair interest charges on their customers, they have been seeking ways to regain the excess profits they lost. Credit card cheques are one such scam.
"The credit card companies spray these cheques around like confetti. What they don't admit to is that the interest rates can be over 20%, the fee for using the facility as much as 3%, or that buying with one of these cheques means that customers don't get the same amount of consumer protection as from a normal credit card transaction.
"Because these credit card cheques are designed to look like an ordinary cheque people assume that they work the same way, and so many people use them to pay off normal household bills. Research carried out last year by Uswitch suggests that the credit card companies made £571m from cheques last year.
"The Labour government has said that it wishes to stamp out irresponsible lending. The way credit card cheques are marketed is one of the obvious places to start."
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