Banks are being accused of adding to the risk of credit card fraud by posting customers a growing number of credit-card cheques. Credit card cheque fraud has risen by 30 per cent rising from 2665 incidents in 2007 to 3428 in 2008; these new figures come not long after Gareth Thomas Consumer Affairs Minister called for the cheques to be banned.

The jump in fraudulent cheques adds around £400,000 to overall fraud; this comes after three years of decline in the number of fraudulent cheques.

Thomas told The Sunday Times: “Stopping the unsolicited sending of these cheques will help people take control of their finances and make things tougher for fraudsters who cost consumers millions each year.”

Banks are also being condemned for irresponsible lending with some being accused of raising the credit limit on peoples cards with first informing them or asking them if they want it.