Jul/090
New Rules for Credit Cards
New regulations are forcing credit card issuers to stop increasing credit limits and sending blank credit card cheques without first assessing the consumer’s financial situation.
Blank credit card cheques do not protect the product bought with them if they are faulty like credit cards do, and they also have more expensive charges than the cards themselves. Without first checking the financial state of a consumer, it can cause serious levels of unpaid debt, the consequence of which falls to the consumer who has used the cheque or credit limit as a way of buying time against other debts they have.
The Government is now putting a stop to credit cards exploiting vulnerable consumers by bringing in a new legislation that stops credit cards issuers increasing credit limits without being requested to do so, or first checking the financial state of the consumer. They are also looking to ban unsolicited cheques by credit card firms being sent out to consumers. Both of which will hopefully decrease financial problems.
Jul/090
Police officers misuse credit cards
Some credit cards were issued to police officers for job expenses have been misused.
In 2003, the Metropolitan Police gave around 3,533 American Express credit cards to the staff and officers. However, 1,400 were then taken back after the met found they were being used for expenses that were not job related and couldn’t be accounted for. More credit cards were issued in 2006 to detectives in operations such as counter-terrorism and royalty protection etc.
In 2008, one sergeant detective was given a suspended 8 month sentence for 2 years after spending over £9000 on his credit card, and another was jailed for 10 months after spending £70,000 on his credit card. In both cases the money was not used as job expenses.
Now it seems that another 300 cases have come to light, 46 of which have turned into criminal investigations.
The Metropolitan Police Authority are appalled at the fact that police officers, who not only set an example to the community but are supposed to uphold the law, are actually breaking it and committing fraud.
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