On January 6, 2023, the FDIC issued its January 2023 edition of the Consumer News where it talked about credit card checks and cash advances. Through the publication, the FDIC reminds consumers to know the costs associated with using these products, also known as convenience checks.
The FDIC emphasizes that consumers should:
Understand that interest rates that apply to convenience checks are usually higher as it is charged at the cash advance rate;
Know that convenience checks issued that are over the credit card’s cash advance limit may not be honored and could trigger overdraft fees, returned-check fees or, over-limit fees; and
Securely dispose unused convenience checks or request their card issuer to stop mailing convenience checks altogether if they don’t plan on using them
The January 2023 edition of the FDIC Consumer News can be found here.
