These five rip-offs should be banned next

Watch out for these five sneaky swindles...

Last week, there was finally a piece of truly good financial news (shocking, I know, in this climate!).

The government has long been under pressure to stop card providers sending out unsolicited credit card cheques, because of the unfair handling fees and huge interest rates attached to them.

It has now been confirmed that these rip-off cheques will indeed be banned, unless a customer specifically asks to receive them. Hurrah!

But here at lovemoney.com we don't let the grass grow under our feet. There are plenty more rip-offs out there that need to be banned by the Government - and here, I'm going to highlight my top five.

My blacklist

Many scams and swindles can be dodged by using a bit of common sense. Businesses aren't charities, after all - and naturally, they're out to make a profit.

However, a line has to be drawn. I've blacklisted the following rip-offs because they're either very misleading, or because they prey on particularly vulnerable people. In short, they're going more than a step too far!

1. Negative payment hierarchy

This sneaky practice is implemented by the vast majority of credit card providers - so watch out.

In a nutshell, it's all about how your card repayments are ordered. If a card operates negative payment hierarchy, it means your repayments always go towards clearing your cheapest debt first (the one charging the lowest rate of interest).

So for example, the balance you transferred (incurring 0% interest) will have to be cleared before any new purchase debt (typically incurring interest at 16% APR).

That means higher profits for the card company, as your most expensive debt is sitting on the card racking up more interest, while you are desperately trying to pay off your interest-free balance transfer.

Luckily, A handful of providers operate positive payment hierarchy (clearing your most expensive debt first). Nationwide and Saga are two of these honorable exceptions, so use them if you can.

Alternatively, you could neatly avoid negative payment hierarchy by opting for the Halifax All In One Mastercard. This offers 0% for nine months on both balance transfers and new purchases. Because both types of debt are interest-free for an equal period of time, there is no need to worry about negative payment hierarchy.

Be warned: this practice is thoroughly underhand. Cards that operate in this way usually bury the fact under pages of small print (look for headings like 'allocation of payments'), so it's very difficult to work out how your repayments are allocated. Disgraceful!

2. Payday loans

Payday loans are essentially cash advances on your next pay packet. They're marketed as a quick and easy way to tide yourself over until the end of the month. It takes next to no time to apply for one, and the cash is usually transferred into your bank account on the same day.

Brilliant, right? WRONG. Payday loan providers trade on your need for immediate cash, and they charge astronomical rates of interest for the privilege.

And I mean astronomical. Some payday loans charge interest equivalent to an APR of 1,737%. Gulp. And it's all too easy to let your debt spiral out of control - because many lenders will automatically extend your loan, month after month, until you stop them.

Read Payday loans are devils in disguise to find out more. These loans make me angry because the providers are profiteering on the back of your desperation.

If you need to borrow from a payday lender, the chances are you can't afford to. You'd be better off paying your local Citizens Advice Bureau a visit for some free, independent debt advice.

Alternatively, to get a competitive loan, use our personal loans comparison service.

3. Store cards

Following an investigation by the Competition Commission, new regulations governing store cards were introduced in mid-2007. However, these rip-off products are flourishing all over the place, so clearly more needs to be done.

Store cards in the UK typically charge far higher rates of interest than credit cards. In fact, several major high street retailers try to press cards on you which charge over 29% APR.

The other main problem is that they are hurriedly flogged in high pressure sales environments, so it's difficult to work out exactly what you're entering into.

Store cards make my hit list because they're unfair on both the customer and the retail assistants forced to sell them. Shoppers are lured in with promises of 10% off their next purchase, while staff are pushed onto the shop floor with store card 'sales targets' ringing in their ears.

A shop assistant tried to flog me one of these cards last week. When I asked her what the interest rate on it was, she didn't have a clue. And I don't think that's unusual. The whole system is rotten and it needs a complete overhaul!

Avoid this trap by opting for one of these competitive credit cards, instead.

4. Hospital parking charges

This rip-off is particularly shocking because it's not perpetrated by the usual 'baddies' (banks and big business) but by the National Health Service!

Many NHS trusts in England charge patients substantial parking fees when they visit hospitals for treatment.

Some demand £2 an hour or even more. So if you're being treated for a serious ongoing illness (like cancer) you could end up forking out hundreds of pounds just to access life-saving treatment. It doesn't get much lower than that.

Perhaps there is light at the end of the tunnel - this 'tax on the sick' has now been abolished in Scotland. But sadly, the practice is still live and kicking south of the border.

I know the health service is strapped for cash, but surely there must be better ways of fundraising?

5. Charges for airport trolleys

We all know airports and airlines are hotbeds of swindles and rip-offs. There's now a rumour that Ryanair's Michael O'Leary is going to make everyone stand on his flights; and knowing the stunts he pulls, he's probably not joking.

Several airports in the UK now charge for the use of trolleys. At Birmingham Airport, for example, you'll have to pay £1 for one.

And if you're a European who hasn't picked up your sterling yet, you're in for a particularly nasty shock: You'll have to pay €2 - which at the time of writing equates to £1.71.

This may be small change to many of us, but this rip-off leaves a very nasty taste in my mouth. There's no easy way round it and it targets people who are already at a low mental and physical ebb.

It also disproportionately affects people who are physically vulnerable and unable to carry their luggage themselves. Shame on any airports which implement this money making scam!

More: Avoid this sneaky con | Watch out for this massive scam

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