It has been revealed that lenders will soon be banned from sending out unsolicited credit card cheques to borrowers amid worries they entice consumers into more debt.

The Government added that it will also stop lenders from raising credit card borrowing limits where customers have not requested the increase.

The move comes after hundreds of British families struggle to meet their financial demands during the financial downturn, and thus rely on debt in between wages.

As a result, the reform will be welcomed by consumer groups and charities which have long campaigned for such practices to be banned as they exploit vulnerable people in debt.

The interest charged on the credit card cheques is often much higher than the rates available on cards. Handling fees on such transactions can also reach up to 2%.

There is also no interest free period and people do not benefit from the same level of protection if things go wrong as if they had used their plastic.