LENDERS are set to be banned from sending out unsolicited credit card cheques to borrowers, the Government announced yesterday.
It claimed the cheques could draw people further into debt than they intended to go, with the interest charged on the cheques usually far higher than if a credit card had been used to make the same purchase.
Consumers also incur a handling fee for using credit card cheques, often 2% of the value of the transaction, while there is no interest-free period.
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