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Credit card cheques are to be banned by the government as part of a new consumer protection scheme.
The Bank of England released figures showing that people living in the UK owe £233 billion on credit cards, overdrafts and other forms of loans.
The governments plans include creating a Consumer Advocate, who would focus on raising awareness of consumer issues and where necessary represent groups of consumers in court.
The amount of outstanding credit card debt in the UK has begun to rise again after falling back throughout last year, hitting £54.4 billion.
The government is looking to implement actions to encourage more responsible lending practices after debt levels became a topic of concern during the recession.
Credit card cheques offer an alternative method for spending on credit cards, issued to customers by providers.
However, this spending method has proven to be an expensive tool for consumers, as issuers charge handling fees for using them, with no interest free days offered and they do not offer the same level of protection if issues were to arise.
The government has been under pressure to enforce the ban, and now says this payment method will be banned completely, and it well be reviewing card fees and charges
It has been found that around a fifth of credit card users in the UK has seen an increase in credit limits in the past year it being requesting.
The government has also been called upon by consumer groups to aid consumers to resolve issues with businesses that they feel have 'ripped them off'.
Ron Gainsford from the Trading Standards Institute said: “The Consumer Advocate proposal is really good news because it will help to further foster a healthy balance between consumers and businesses”.
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