Credit Card Cheques

[echat11]

Hi,

I'd like to challenge my credit card company over credit card cheques and the lack of information sent with the cheques, I'm not sure what legislation I could use?

[Amy]

Re: Credit Card Cheques

What do you mean by "lack of information"

[echat11]

Re: Credit Card Cheques

Regulatory info such as APR, what terms apply to the cheques, thats normally on the covering letter.

[Celestine]

Re: Credit Card Cheques

Have you checked the T&Cs or read any received literature about applicable rates of interest on cash advances, purchases or cheques?

If the rate has been published and sent to you then that should have explained all relevant information......or is there something odd about your account that needs further explanation?

[echat11]

Re: Credit Card Cheques

When I received the Credit Card Cheques, there was a covering letter, but the letter didn't refer to terms and conditions, it didn't have any useful information for the consumer.

[WendyB]

Re: Credit Card Cheques

Well did you use them or not? If you were unsure about the T and C and what they covered, then why not ask in the first place, or not use them till you were sure? Usually credit card cheques T and C's are covered in the credit card t and c'c, I believe, so you would already have had the info with your credit card.

[echat11]

Re: Credit Card Cheques

WendyB

http://news.bbc.co.uk/1/hi/business/8129555.stm,

as a minimum it should say refer to your 'terms and condition'. Everything else on the planet does. It's again a case of the Credit Card Companies living on the edge.
Who is trying to initiate a transaction? the credit card company by sending unsolicited Credit Card Cheques, I would expect them to tell me what 'terms and conditions'
apply to those cheques, and not for me to send in for a quote.

[enaid]

Re: Credit Card Cheques

Ahead of a ban on lenders sending out unsolicited credit card cheques, card giant MBNA has announced it is going a step further and will stop issuing them, whether or not customers find them useful. MBNA is said to be Britain's biggest issuer.
I think the ban is also just a ban on sending them out unsolicited and that customers can request them if they so wish from the other lenders, i maybe wrong though.

Who is the bank you are with ?

This is in Barclaycard T&C's

What about credit card cheque fees?

We may send you credit card cheques. You can use these to pay off other credit cards or loans, or pay them into your bank account as a convenient way of borrowing money.
The interest rate charged on these cheques will vary, and we may charge a handling fee of 2.5%. We'll send you a letter with the cheque that explains the interest and handling charges (so remember to read the letter carefully before you use the cheque).
We charge standard rate credit card cheques as cash withdrawals (see the next question for further info).
And cash withdrawals?

You can use your Barclaycard to withdraw cash from ATMs worldwide. There is a handling charge of 2.5% and the minimum charge is £2.50.
Note that our typical interest rate for cash withdrawals is 27.9% - we charge a higher rate for cash than for standard purchases. Cash APRs will be marked clearly on your statement

[echat11]

Re: Credit Card Cheques

The account was originally with Goldfish, Barclaycard took it over.


'I think the ban is also just a ban on sending them out unsolicited and that customers can request them if they so wish from the other lenders, i maybe wrong though.'

No you are correct, if the customer asks for them a max of 3 cheques can be sent out.
------------------------------- merged -------------------------------
Just to mention on one of my other Credit Card Accounts. I asked for the account to be closed. They left the account dormant. I didn't have any valid Credit Card's for that account, but I was still sent Credit Card Cheques.

[natweststaffmember]

Re: Credit Card Cheques

When I received the Credit Card Cheques, there was a covering letter, but the letter didn't refer to terms and conditions, it didn't have any useful information for the consumer.

Can you scan the letter onto the forum omitting your details or type it out longhand so we can see the content of the letter?
I have an example of one from NatWest dated February 2009 which are for balance transfers which clearly give the amount I will be charged and the interest rate applicable.
------------------------------- merged -------------------------------

'I think the ban is also just a ban on sending them out unsolicited and that customers can request them if they so wish from the other lenders, i maybe wrong though.'

No you are correct, if the customer asks for them a max of 3 cheques can be sent out.
------------------------------- merged -------------------------------
Just to mention on one of my other Credit Card Accounts. I asked for the account to be closed. They left the account dormant. I didn't have any valid Credit Card's for that account, but I was still sent Credit Card Cheques.

How did you ask them to close the account? Verbally or in writing? Did you follow this up when it was not closed and no confirmation arrived?

[echat11]

Re: Credit Card Cheques

MBNA - I asked the account to be closed down in 1999, I think it was in writing, they left the account dormant, in 2004 they sent me some Credit Card Cheques. I didn't find out until 2004 that the account was left dormant. They didn't send any statements inbetween. Even though I can't see how my 1996 CCA could be vaild and the fact that I didn't have any vaild Credit Cards. I complained to the FOS at the time. I've got copies of the CCA's.

MBNA are looking into the matter, thats a laugh. I didn't have as much knowledge as I do now.

[natweststaffmember]

Re: Credit Card Cheques

MBNA - I asked the account to be closed down in 1999, I think it was in writing, they left the account dormant, in 2004 they sent me some Credit Card Cheques. I didn't find out until 2004 that the account was left dormant. They didn't send any statements inbetween. Even though I can't see how my 1996 CCA could be vaild and the fact that I didn't have any vaild Credit Cards. I complained to the FOS at the time. I've got copies of the CCA's.

MBNA are looking into the matter, thats a laugh. I didn't have as much knowledge as I do now.

Did you use the cheques that they sent?
Is the complaint that they did not shut the account at the time and is it still open?

[echat11]

Re: Credit Card Cheques

Yep, I used them, it's the fact that they haven't got a vaild CCA for the account, but amoungst other things each time you use a cheque, they set up a new account. So you could use six cheques and have six accounts.

[natweststaffmember]

Re: Credit Card Cheques

Yep, I used them, it's the fact that they haven't got a vaild CCA for the account, but amoungst other things each time you use a cheque, they set up a new account. So you could use six cheques and have six accounts.

Do they? Blimey, I had assumed that what had happened was that when the cheques were used that the amount would be taken of the credit card limit, for example, say the limit is £1500.00 and you used two cheques for £300.00 then your credit limit would be £900.00 less any charge for the cheque useage.
I take it MBNA set up 6 NEW credit card accounts?

[echat11]

Re: Credit Card Cheques

I think they subdivide the credit limit for the new account they set up. But my credit limit for my existing account remained the same, so in reality my overall credit limit goes up each time. Even after complaining about new accounts being set up, they just carry on doing it.