OFT: Warn consumers about credit card cheques
The Office of Fair Trading (OFT) says many consumers are unaware about the additional costs of using credit card cheques and should therefore be warned of them.
Consumers can use credit card cheques to draw money from an existing credit card account using a cheque, but many of them are unaware of the higher interest rates and the additional fees that are often charged for using these.
The OFT estimates that these unexpected charges are costing consumers £57 million a year collectively and is calling on the government to introduce legislation ensuring that consumers are given clear and practical advice regarding credit card cheques.
John Fingleton, OFT chief executive, commented: 'Consumers need good quality information about the costs and other potential disadvantages of credit card cheques before they consider using them.
'This isn't always happening and we urge the government to introduce legislation to protect consumers.'
The OFT wants consumers to be made aware of the difference between using credit card cheques and using a credit card, of what interest rates are charged and when, as well as of any additional fees that may also be levied.
It also backed the calls made by various consumer groups for credit card cheques not to be sent to consumers without their prior consent. | 
