Hidden costs: An expensive pre-paid credit card in the post
“Free” credit offers like these are usually not trustworthy. If you don’t realise that you are being ripped off in time and you sign a contract, you will probably receive an expensive pre-paid credit card in the post. What does that mean? You have to load a pre-paid credit card with money before you can use it to make payments. What is particularly frustrating is that the cards are not actually free at all. You have to pay for the credit card quickly, which is often “cash on delivery”, i.e. when you receive the letter in the post. You are often sent other bills subsequently too.
What can you do about that?
If you have already ordered a credit card purporting to be free from an untrustworthy website, you should refuse to accept “cash on delivery” post. You will not find a credit card or confirmation of credit in the envelope but a pre-paid credit card. It is important that you cancel the contract immediately to avoid further bills or debt collection letters.
Are you unsure how to do this? You can get personal advice from the Consumer Advice Centre.