20 May 2008
Barclaycard has been criticised for urging to customers to withdraw money from ATM machines using their credit cards.
The firm sends letters to consumers willing them to take out cash for daily items but does not stipulate that interest can hit 27.9%.
On top of this, 2.5% of the cash withdrawal is also added on as a fee with a £2.50 minimum, the publication says.
Credit Action's Director Chris Tapp labelled the move an irresponsible one by Barclaycard and said that the general public is already in trouble financially.
"When people are really starting to struggle with their bills, this type of letter is grossly irresponsible," he commented.
He added that it is "bad advice" to make such cash withdrawals with credit cards seem like an everyday occurrence.
Transact, the advice outfit, recently revealed that more wealthy people are getting into debt as the credit crunch has a profound impact.