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Debt Advice Handbook 14th edition

Charge card
A charge card (eg, American Express) is not a credit card. Purchases are made and the amount is charged to the account, but the balance must be cleared in full at the end of each charging period (usually monthly).
The legal position
Agreements for charge cards made before 1 February 2011 are exempt from the Consumer Credit Act 1974 because there is no extended credit. Agreements for charge cards made on or after 1 February 2011 are not exempt unless there are only ’insignificant’ charges for the credit. There is no guidance in the legislation or in the Department for Business, Energy and Industrial Strategy guidance on what is ’significant’ in this context.
Special features
In order to obtain a charge card, it is necessary to pay an annual fee and show proof of a high income.
Checklist for action
Advisers should take the following action.
    Check liability, including whether the Consumer Credit Act 1974 applies and, if so, the enforceability of the agreement.
    Assist the client to choose a strategy from Chapter 9, as this is a non-priority debt.