The hidden costs of credit card cheques
The cost to consumers of credit card cheques routinely sent to homes through the post has come under the spotlight. The DTI has launched an attack on what it sees as unclear and misleading information against credit card companies that fail to offer clear information regarding interest charges that can be as much as 40 per cent higher than the rate charged for credit card borrowing.
The credit card charges also have an additional handling fee which can be for up to 2.5 per cent. The DTI, in a report to be published in July echoes the feelings of the Treasury Select Committee, which in Decemebr 2003, recommended clearer, standardised labelling on interest rates and charges on cheques. The online comparison site - uSwitch recently showed that their research recently highlighted the fact that one in three credit cardholders did not know the interest rates charged on cheques. | 
