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The government has unveiled plans to ban credit card companies from raising borrowing limits or sending out cheques without their customers' consent in a bid to prevent people running up debt.

The consumer white paper, which aims to promote responsible lending, proposes that companies will only be allowed to send credit card cheques out on request by customers.

Interest charged on these cheques, which can be used like personal cheques, are often higher than standard credit card charges.

Handling fees of about 2% of the value of the transaction are also often charged and there is no interest free period.

"The credit crunch has sharpened the focus on these issues more than previously," said consumer minister Kevin Brennan, who presented the paper today.