CIRCLE REBATE - fight for your 1% cashback

MSE_Martin

I've had a few emails regarding Circle Rebate withdrawing it's cashback.

The basic gist is people are calling up and asking "is my cashback being reduced and if so when".

It seems at that point, those who have not yet had a letter are being effectively told I was told "cashback hadn't been reduced and until I received anything in writing it would stay at 1%." They are being given the strong impression that it would stay at 1% if it is wanted it - so stress you do.

Worth a try

Martin

Galstonian

I specifically asked the operator I spoke with to ensure that a note was put on my file. I stated that the only reason I chose the Cap1 Circle card was for its 1% cashback and that if it is being reduced I will be forced to look elsewhere just as I did when Goldfish reduced the value of their loyalty scheme. I am following this up in writing. The only reason I don't go elsewhere immediately is because it doesn't fit my agenda with other credit applications already underway (but I'm not telling them that. unless they're reading this. and know who I am).

I don't know what kind of approach you can make to them but I find it hard to believe that they are losing any money through this card. Personally I think it will be because there will be certain targets set and this card doesn't help achieve them. Things like a certain percentage of customers should carry a balance forward every month or it must earn a certain ratio of interest to balances or such like. The facts that there will be practically no exposure to risk since all accounts will be paid in full every month won't be accounted for. That's business for you.

mrtickle

I have finally been accepted for one of these cards (applied 15th May, had to appeal). My welcome letter mentions the 1% cashback - obviously a standard letter, but they certainly haven't updated it!

gritts

I rang up (it was a call centre in India/ absolutely terrible line, but that's another discussion) and said I would be closing my account as soon as my 1% offer runs out (August) and once I've got my cashback.

All I got was 'we are lowering the cashback level to give you other benefits'. No mention what these were. No offer to let me keep the 1%.

TheDink

Well, I tried fighting, but got this response:

Thank you for writing to us about the recent letter you received telling you that your rebate has decreased to 0.5%. I appreciate the frustration this has caused and I'm sorry you're unhappy with this reduction however I'm unable to change your rebate back to 1%..

When you applied for your card, we were offering 1% cash back on all purchases. This wasn't a promotional offer, although we reserve the right to amend the amount of cash back we offer at any time, which we advise you in your credit card agreement. However if you compare the Capital One Circle card to similar cards offered by our competitors, you'll see that it is still a very competitive card.

In order to offer more competitive products in the future, we decided to reduce the cash back amount to 0.5%. Unfortunately I'm unable to tell you what the new products will be as we are currently developing them. As soon as we have any new products to offer, we'll send you confirmation of this in writing.

I can tell you that the reduction applies to all new customers and some existing customers. Unfortunately I'm unable to tell you the reason why your account was chosen as we used our internal assessment criteria. This has to remain confidential for it to stay effective.

I hope you'll reconsider closing your account and that you'll be happier with our services in the future.

Onto pastures new...

Do Capital One charge for balance transfers? When I get my cashback in January would I be able to BT it to another card rather than have to spend on the card up to the balance of the cashback award?

ler01kjh

I'm obviously one of the lucky ones. I wrote to Capital One to say I was concerned at news of the cut in cashback rates, and that I would close my account if they did so. They told me that it would only be reduced on specific accounts and that if I hadn't received a letter by the end of June then nothing would change.
See copy below:
From: Capital One
Sent: Wed 23 Jun 04
Subject: Re[1]: Cashback


Thank you for your secure message query telling us that you're concerned about the recent communication about the reduction in our rebate rates.

I appreciate that a reduction of the rebate card from 1% to 0.5% may be quite worrying for some cardholders.

This decrease will not be applied to all accounts. If your account is going to be included in this decrease you will receive a letter from us to explain everything at the end of June.

If your account is included in this decrease, the rate of 0.5% is still very competitive with other credit cards available.


Thank you for using our internet services.
Lee Powell
Customer Relations Manager

zcaprd7

Hmm...

ler01kjh, do you clear your account every month?

Are they merely targetting the good customers (that don't yield any profits)?

System

Hi, I have had a Circle One rebate card for around a year, clear my balance each month and have been informed that my cashback rate WILL be reduced to 0.5%.

It would be of interest if they ARE targetting us 'astute/careful' (ahem) customers.

ler01kjh

No, I'm innocent!  I would have thought they would target the least profitable customers but I do clear the account each month. I've had the card about 4 months, with two cards on the account.  We spend around £400-500 a month.  Maybe they've let me off the hook for now to see whether I will start accruing interest in the future? If your account has been going for 12 months and you've paid it off in full every time, they probably judge that you're not going to change your routine.

Maybe if enough people say how their account operates, together we could work out what their account selection criteria is!

zcaprd7

Don't they make % cash on each transaction as well?

£500 a month is fairly nice for them - maybe its the low user, who clear each month?

TheDink

I put through about £800 to £1000 most months and £4000 ish in January (railcards are expensive!), then pay off the full balance - not that low usage. I must just fall into the wrong band of spend.