Money News
Britain's biggest credit card company, Barclaycard, has been accused of acting irresponsibly after sending out letters to customers reminding them to take instant cash out of ATMs - but without mentioning the 27.4% interest that'll immediately accrue once they do so.
Factor in a minimum £2.50 fee for withdrawals, or 2.5% of the amount taken out and the deal looks even worse. More so when the letter suggests using the cash to buy minor items like a cup of coffee or a newspaper.
The initiative comes despite one of the most financially turbulent periods being witnessed in recent years as consumers rein in expenditure.
Chris Tapp, a director of Credit Action, the debt advice charity, said: "In the current economic climate, where more and more people are struggling to afford day-to-day spending, it is extremely disappointing to see Barclaycard seemingly encouraging people to use a high cost form of borrowing to pay for items such as coffee and newspapers in this way.
"The dangers of this should be made very clear to people who may not understand the rates on cash advances, or that the interest accrues from the moment the money is withdrawn."
CREDIT CARDS | ONLINE CREDIT CARDS | BALANCE TRANSFER |Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.