Nationwide reduce payment time

smartsaver · 22 February 2005 at 10:18AM

Have just got Nationwide statement. It has a note on the bottom (that could easily be missed by those in a hurry) which advises
'you will be required to make your next payment 10 days earlier than usual'
The chap at the call centre advised we are reducing our payment period from 25 to 15 days. I suggest anyone with a Nationwide card sets up a direct debit. It does not give you long with post and transaction times to make a payment any other way.

What next will they think of to get money? Will this be the way forward for other CC companies? I think we have to watch this space...

Galstonian · 22 February 2005 at 10:50AM

I just received a letter from Nationwide and congratulations to them for sending it.

It is a single page which details all changes to my account in normal (not small) print. None of them are beneficial to the customer and are exactly the type of things that are usually buried in other communications. I hope this is being extended to all customers as it is quite refreshing to find such honesty and transparency in these things.

From memory:
- maximum interest free period reduced from 56 to 46 days
- 1% increase in rates
- 0.25% reduction in cashback
- no cashback on overseas transactions

They advise that direct debits will be taken ten days earlier and suggest I ensure sufficient funds are available or call them to discuss altering payment dates.

This still leaves the card as the clear favourite for overseas spend. If you have the Gold card it includes a one year extended warranty on certain electrical and white goods purchased with the card which can be useful too. Their customer services are in my expereince very good but the fact they are not a clearing bank can make it difficult to make payments outside of direct debits.

smartsaver · 22 February 2005 at 11:12AM

I didn't get this one Gal, just a note on the last page which could have been missed. Maybe I'll get a separate letter later. I agree with you it is good of them to highlight the changes in a letter and not bury them in the small print.

Galstonian · 22 February 2005 at 11:15AM

I hope so too, doing this for a limited set of customers would be worse than doing it for none in my opinion.

Joe_Bloggs · 22 February 2005 at 11:28AM

Nationwide announced that they were reducing the maximum interest free period on the cash reward card to 46 days. This card will also suffer reduction to 0.5% purchase rebate on March 1st. it drops to 0.25% after six months. See Martins 'Best card for Purchases' article for alternatives.
The Gold/classic card maximum is still 56 days. This card is useful because it can give you a month plus two weeks to sort out alternative finances without paying any interest.
I used this feature to pay my season travel ticket, that I had not fully budgeted for, with my Amex Blue card (1% purchase rebate). Then I used Nationwide classic balance transfer to pay my bill with Amex Blue, a few day before the Amex account was due and just after the Nationwide statement. I now I await my Nationwide bill for what was December's credit card expenditure, with the money to pay it in full, earning interest at 5% gross in a convenient location for rapid internet transfer.
J_B.

Why burdon your postie with your bills and statements when you could use online banking. The postal service has enough junk mail to deliver to make it unreliable and late in my area despite their best efforts.

Galstonian · 22 February 2005 at 11:42AM

One quick and efficient phone call later and now my direct debit date stays the same, my next statement date will be adjusted instead. As ten days would have taken the payment to the wrong side of pay day this is quite helpful.

MattLG · 22 February 2005 at 1:16PM

Galstonian wrote:

This still leaves the card as the clear favourite for overseas spend.

But that's the only thing it's good for now. I'll be leaving it at home unless I'm on holiday from now on.

MattLG

kenshaz · 22 February 2005 at 8:31PM

The fact that you get Visa foreign currency rates,still makes this card very handy when abroad,I use it all the time when in Spain for all purchases ,they must have costed this one,hope the card does not worsen any more .

lolly5648 · 24 February 2005 at 2:48PM

What does everyone recommend as a new cashback card - dont want Amex as lots of places dont take it?

Money_Man_Steve · 24 February 2005 at 7:57PM

kenshaz wrote:

The fact that you get Visa foreign currency rates,still makes this card very handy when abroad,I use it all the time when in Spain for all purchases ,they must have costed this one,hope the card does not worsen any more .

The Nationwide Classic Card is still a best buy for purchases abroad or in a foreign currency and has 56 days interstest free credit, although it doesn't pay any cashback.

I spoke to the card services department to ask if I could change my Nationwide Cash Reward Card to a 'Classic' card a few days ago, and asked if that would result in me losing the cashback I had accrued to date. They advised me I could switch and that I'd still get the cashback.

They sent me a letter to confirm my change request - one of the options is to switch to a Classic Card with an introductory rate of 0% for 6 months, which is much better than a poke in the eye with a sharp stick!

I'd be careful though - if you are thinking of converting your Cash Reward in to a Classic card, double check that you'll qualify for the special offer on the new account AND that you won't lose any cashback you've earned to date. Also a good idea to get the name and extension number of anyone at Nationwide who states you will get these benefits, just to be safe!

Also, the reduction in cashback rates doesn't apply to introductory offers, so if you've had your Cash Reward card for less than 6 months, you will still get 1% on all £ Sterling purchases for 6 months from the date your account was opened, so if that applies to you it's worth hanging on to it until your 1% introductory rate expires.

Would be interested to hear how anyone who switches cards gets on...

kenshaz · 24 February 2005 at 10:51PM

Just came off the phone to Nationwide,I have moved 6months 0%,back to 56 days,Thank-you Money man Steve

Nationwide reduce payment time

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