Getting Cash Out On Your Credit Card? Think Again!

With Chip and Pin now widespread since it's launch last February, more and more consumers are now opting to withdraw cash from ATMs using their credit card. This has been getting more and more expensive since May 2005 according to internet price comparison site USwitch.

USwitch said that since the OFT (Office of Fair Trading) and the DTI (Department for Trade and Industry) forced a reform in APR advertising, rates for withdrawing cash have risen from around 21% to 27% with some lenders are charging a fee the equivalent of more than 31% APR. The 2005 ruling changed the way APRs could be used, to apply only to the main purchases on credit cards and not to other fees such as cash advances.

Coupled with a rise of approximately 11% due to the introduction of Chip and Pin, expensive cash withdrawals from credit cards have risen to become a major consumer concern for which the average consumer may still not be aware.

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