Credit Where Credit Is Due: The ATM Rip-Off
STOP right there! Step away from the ATM machine and put your credit card back in your wallet. That’s what consumer experts are now telling us to do, albeit in a far less dramatic and silly fashion.
The advice follows new research which highlights the spiralling costs of withdrawing money from a cash point with a credit card.
The average annual percentage rate (APR) for withdrawing money with a credit card now stands at 23.48%, up a whole 2% from last November. Some greedy companies are even charging customers with poor credit ratings in excess of 46%.
Marc Gander, of the Consumer Action Group, is frustrated at the lack of transparency surrounding credit card charges. Says he: “There is no doubt that the whole business is built of stealth. The consumer does not really know what they are paying.”
While Sean Gardner of MoneyExpert.com warns consumers: “Borrowing cash on your credit card is incredibly expensive and unless it is really necessary we would urge people to think twice before doing it.”
Last year the credit card industry was threatened with legal action by the Office of Fair Trading over its excessive charges.
However, no matter what happens, the sad fact is that banks will always find some way of making even more money out of us.
What’s the alternative?
Posted: 5th, June 2007 | In: Money Comments (2) | TrackBack | Permalink
