Cedit Card Cheques.

An increasing numbers of consumers are receiving credit card cheques from their lenders in the mail, a consumer organisation has revealed.

Despite the fact that consumers will be be charged up to 3% in fees, will have a lack of protection and have higher interest rates, there has been a steady increase in the number consumers receiving the credit card cheques. According to Which?, using the cheques is a bad idea.

"The problem is that people see them as normal cheques and, if their finances are a bit tight, will think: 'I'll use this as a delayed

"With their lack of Section 75 [protection] and high fees, they're a massive no-no. If you're after a balance transfer, ask your existing credit card lender if you can switch debts from rival cards."

Given the current economic climate and the recent talks Lord Mandelson ,the business secretary, had with major finance providers late last year, this will not sit well with the Government.

From a consumers point of view, it is yet another slap in the face and a morally questionable ploy by the credit card companies to extort even more money from credit card holders.

The steps the goverment recently took to ensure that credit card providers treat their customers fairly and to avoid forcing consumers into further debt, are apparently being ignored by the credit card companies.

The credit card cheque issue is made even worse for the fact that unwitting card holders - who use this process - are not being made aware that the potential for the cheques to be intercepted by fraudsters without the credit card holder being aware, is a clear and present danger, according to the Guardian.

Compare credit cards at Saving More Money.