Is Barclaycard being irresponsible?

A number of industry officials have recently branded the credit card giant Barclaycard as irresponsible, claiming that the card provider has been sending out mailings to customers encouraging them to take out cash on their credit cards in order to buy what they want.

Officials state that in the current financial climate this could appear tempting to consumers, but the high interest charges and fees that come with cash advances could result in many getting even deeper into debt.

One official said: ‘When we are going through one of the worst periods of financial turmoil for many years, when people are really starting to struggle with their bills, this type of letter is grossly irresponsible. Making cash withdrawals appear more normal in this way, like an everyday activity, is extremely bad advice. It may be good for the company but it is dreadful for the consumer.’

Another industry official went on to say: ‘If you are taking cash out on your credit card to pay for a cup of coffee or a newspaper then you really are in financial difficulty. There are dozens of cheaper ways to get money for these items. It is a classic symptom of someone who does not have enough to pay day-to-day bills. You really shouldn’t be encouraged to do this.’