Creation Finance - Beware!

I have a store card for MK One (which I pay off every month but periodically get offers / vouchers etc. so is worth keeping). The card is administered by Creation Finance and today I have received a letter from them, at the bottom of which is a cheque, made out to me, for £700.00.

On reading the small print it would appear that this is a cash advance on my card as they have increased my credit limit. Carrying on down the blurb, not only is there a 2% cash advance fee but the effective interest rate for this 'advance' is 30.9% pa.

I think that this is a very sneaky way of lending money and someone not properly reading the letter could think that this was some sort of payment to them. Surely this must be against financial rules and regulations and if it isn't it should be.

Comments

But you would have to cash the cheque wouldnt you? I get blank cheques from my Credit Card company every month. I dont use them because i know is money from my credit limit and that the APR on cash advances are massive. They arent doing anything wrong, they are just being clever. But then again if people really think that getting a cheque of someone is free then im sorry ive no remorse if they think they have been duped.

Just reading these posts on Creation Finance. I took out Car Finance about 2 years ago with a finance company - i foret the name now - and after about 12 months off having the finance it then got took over by Creation Finance Ltd. This meant nothing to me to be honest as nothing my end changed. My payments were stil the same etc.

Now last month the first payment EVER got returned from Consumer Finance by my bank. I rcvd a letter of default from Consumer Finance telling me this had happened and that if i didnt make payment immdiatley then firther action would be taken. Before i een had chance to ring them up to sort out i then received a letter from a debt collecting company - Red Castle - telling me to pay up the full amount immediatley.

I find it very unfair that after 3 years and one missed payment Consumer Finance dont give me the chance to contact them they just refer me to a debt collection agency - Can they do this after one reminder letter and can they serve a default on me straight away.