Collections and Credit card shuffling – Beware
Posted April 22nd, 2009 Credit card shuffling is a highly unscrupulous practice where debt recovery agents request you pay off debts with other credit cards from different credit card institutions. The benefit from the debt recovery agent’s perspective is that you pay off your debts straight away. The problem from our perspective is that this process involves taking on the initial debt at a higher (i.e. credit card) rate.
Into the breach steps Labour MP Andrew MacKinlay. In an interview with the Sunday Times, MacKinlay states:
“The current rules on the collection of debt are inadequate and need to be reviewed because they are not being enforced properly,” he said. “There need to be severe financial penalties if companies are found to be harassing customers and treating them badly.”
The quote comes from an article about Lloyds TSB Collections Department using unethical methods for getting money back from customers who have been adversely affected by the credit cruch; the Collections Dept were on tape threatening to ‘f**k’ customers who were missing their payments.
To reinforce his point, MacKinlay said
“There need to be severe financial penalties if companies are found to be harassing customers and treating them badly.”
I thoroughly recommend checking out the Sunday Times article, it gives a really good insight into the world of collections departments. For those who have been blessed to have not worked at a bank, it’s a valuable lessong and well worth the 10 minutes it takes to read the article.
Either way, if a collections agent encourages you to transfer an outstanding debt to a credit card, tell them to do one. If they harass you, speak to the citizens advice bureau.
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Comparison of Top 10 Credit Card Offers
| Credit Card | Card Details | Interest Rate | Cash Advance Rate | Balance Transfer Rate | Annual fee | Interest free days | ||
|---|---|---|---|---|---|---|---|---|
 Halifax All in One Credit Card |
The Halifax All in One credit card offers a great introductory rate, and is perfect for saving you money now as well as in the future. | 15.9% APR | 27.95% p.a. (variable) | 0% for 9 months | No Annual Fee | 59 Days interest free |
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 Virgin Credit Card |
As well as a great rate, the Virgin Credit Card comes with:
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16.6% APR (variable) | 27.9% p.a. (variable) | 0% for 16 Months (2.98% fee on balance transfers) | No Annual Fee | 50 days on card purchases |
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 Capital One Classic Visa |
This card is designed for people with bad credit ratings, this is why the rate is quite high. |
Typical 34.9% APR variable | 34.9% APR | 34.9% APR | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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As well as earning Flying Club miles which you can spend on brilliant rewards like flights, upgrades, car hire and more, a Virgin Atlantic Credit Card gives you up to 46 days interest free on card purchases. |
17.9% APR typical rate | 20.9% p.a. (variable) | 0% for 6 months (2% handling fee) | No Annual Fee | Up to 46 days on card purchases only. |
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The Virgin Prepaid MasterCard from Virgin Money is a prepaid Mastercard that you can add funds to, and use these funds for normal purchases. |
N/A | N/A | N/A | N/A | N/A |
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5% cashback on purchases in your first three months (up to £4,000 of spend). Thereafter, earn 0.5% on the first £3,500, 1% on £3,501 to £10,000, and 1.5% after £10,001. |
18.9% p.a. | 27.9% p.a. | 18.9% p.a | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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Vanquis Visa Card is designed for people with no credit history or who have previously had bad debt. Representative 39.9% APR (variable) |
Representative 39.9% APR (variable) | 39.9% | N/A | No Annual Fee | Up to 56 days on card purchases only |
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The award winning prepaid card with no credit check or bank account needed. | Funds in your Account will not earn interest | Prepaid only - N/A | Prepaid only - N/A | £59.40 p.a. (£4.95/month) | Prepaid only - N/A |
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