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| Credit card cheques to be banned | Credit card cheques to be banned |
| (30 minutes later) | |
| Credit card cheques are set to be banned and a new post created to help ripped-off consumers get their money back, the government has announced. | |
| Measures to assist people facing difficulties with debt and at risk from rogue traders are also in the plans. | |
| Figures from the Bank of England show that UK residents owe £233bn on credit cards, overdrafts and other loans. | Figures from the Bank of England show that UK residents owe £233bn on credit cards, overdrafts and other loans. |
| The government plans - laid out in a White Paper - include the creation of a Consumer Advocate. | |
| Under the plans, he or she would raise awareness of consumer issues and take cases of "national importance" to court on behalf of groups of consumers seeking compensation and refunds. | |
| Credit cards | Credit cards |
| Outstanding credit card debt in the UK has reached £54.4bn - a figure that has started to rise in recent months after falling back in the course of last year. | |
| The Consumer Advocate proposal is really good news because it will help to further foster a healthy balance between consumers and businesses Ron Gainsford, Trading Standards Institute class="" href="/2/hi/business/8129086.stm">What to expect from a consumer champion | |
| The government wants action to make lending practices more responsible, with concerns raised about debt levels during the recession. | |
| Credit card cheques are blank cheques sent out by card issuers to their customers, often with a statement, giving them an alternative way to spend on their card account. | |
| They have proved to be controversial because consumers incur handling fees for using them, there is no interest-free period as seen with a card, and they do not command the same level of protection for customers if things go wrong. | |
| The government has been under pressure for some time to ban them. It announced earlier in the year that it would ban firms from sending out unsolicited credit card cheques and it now says these will be banned completely. | |
| Research from the price comparison website, Uswitch, suggested one in five people had seen their credit card limit increased in the past 12 months without them asking for it. | |
| The government has also announced a review of card fees and charges. | |
| Help at hand | |
| Consumer groups have also called for more help for consumers to resolve issues with businesses which they believe have ripped them off. | Consumer groups have also called for more help for consumers to resolve issues with businesses which they believe have ripped them off. |
| Citizens Advice wanted a Consumer Ombudsman who would resolve individuals' complaints and take command of group action by consumers. | |
| Instead a Consumer Advocate role will be created by early next year. This will be a person who is comfortable taking part in high-profile consumer campaigns as well as representing large groups of consumers in court seeking compensation. | |
| Disgruntled customers who have been ripped off by a business can opt-in to a group legal action led by the Advocate when it first goes to court - or at the point at which a case is successful, according to the plans. | |
| "The Consumer Advocate proposal is really good news because it will help to further foster a healthy balance between consumers and businesses," said Ron Gainsford, chairman of the Trading Standards Institute, which represents trading standards officers. | |
| Have you been affected by credit card debt? Would you welcome a Consumer Ombudsman? Send us your comments | Have you been affected by credit card debt? Would you welcome a Consumer Ombudsman? Send us your comments |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |