In a move which has apparently been on the cards for some time, MBNA is set to phase out credit card cheques ahead of a government ban when the Financial Services Bill comes into force next year. While credit card cheques have proved useful to some customers, many promotional credit card cheques have tempted new customers to spend money which perhaps was beyond their means.

Not only do these credit card cheques place temptation in the way of many who would otherwise not have considered this form of funding, but they are very expensive for consumers. MBNA customers will still be able to request credit card cheques prior to the 31st March deadline and they will be honoured until they run out. However, other credit card companies such as Barclaycard and Sainsbury's will continue to issue credit card cheques in the short to medium term.

It is becoming more and more evident that the UK government is clamping down upon the credit card industry and the age old activity of placing temptation in front of many in the UK. Whether this is yet again just lipservice ahead of the election, and we will revert to normal after the vote, remains to be seen, but there is no doubt that UK credit card debt is now a major problem for consumers, businesses and the government.

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