Leeds BS Credit Card - Can they do this?

Chalky9_2

I have a Leeds Building Society Credit Card, operated by Morgan Stanley. Up to now they have offered 1% cashback on the first £2000 spend during "your" year, and .5% on the rest, with the bonus paid around your anniversary. My anniversary is December 15th.

Today I've received a letter saying that the cashback is changing with effect from October 1st, and after that you will only be able to claim your cash back in multiples of £15. Furthermore cashback will only be awarded at the rate of .5% on all purchases

I've accumulated £8.58 in my year to date. This is MY MONEY, but according to Morgan Stanley I can only have that money if I make it up to £15, which means spending another £642 on the card between now and October 1st or £1284 after that date. As I have cards offering interest-free purchases, it is not really economical to use this card at the moment.

Can they do this?

It seems to me that this is the equivalent of your boss offering you a bonus of 1% at the beginning of the year, and then, after eight months, saying "you can only have the bonus you've already earned if you work another 1284 hours!":mad:

M_Thomson

Chalky9 wrote:

I have a Leeds Building Society Credit Card, operated by Morgan Stanley. Up to now they have offered 1% cashback on the first £2000 spend during "your" year, and .5% on the rest, with the bonus paid around your anniversary. My anniversary is December 15th.

Today I've received a letter saying that the cashback is changing with effect from October 1st, and after that you will only be able to claim your cash back in multiples of £15. Furthermore cashback will only be awarded at the rate of .5% on all purchases

I've accumulated £8.58 in my year to date. This is MY MONEY, but according to Morgan Stanley I can only have that money if I make it up to £15, which means spending another £642 on the card between now and October 1st or £1284 after that date. As I have cards offering interest-free purchases, it is not really economical to use this card at the moment.

Can they do this?

It seems to me that this is the equivalent of your boss offering you a bonus of 1% at the beginning of the year, and then, after eight months, saying "you can only have the bonus you've already earned if you work another 1284 hours!":mad:

They can change the rate of cashback anytime they like as long as they give notice. However, it seems very harsh to say that any money you have gained under the old conditions will not be paid until the £15 limit has been reached. They should really start this at the next anniversary date. Try calling them back to confirm this. If it is going to happen then I would write a letter of complaint.

Also, I wonder if they are bringing this condition onto the normal Morgan Stanley Card?

Tarquin_2

I'm in a similar postion. Had a letter from AMEX reducing cashback rates on a tiered sytem on the same day! So I've been spending to get to the high rates of cashback and they've been withdrawn! Two letters of complaint duly sent!

Tarquin_2

Just phoned them. They will credit the cashback that you are owed immediately and close your account if you wish. No attempt to keep me as a customer. Perhaps they're just doing this to the people that don't make them any money?

markmc999

They probably can do it as its a T&C change which they have notified you about. May be worth calling/writing to them and seeing if they will give you the cash back now

Gordon_the_Moron

You could always spend on the card and pay it off at the end of the month in full, as good as 0% unless they don't offer an interest free period.

Tarquin_2

Gordon_the_Moron wrote:

You could always spend on the card and pay it off at the end of the month in full, as good as 0% unless they don't offer an interest free period.

I think you misunderstand. I pay it off monthly, but they've drastically changed the cashback rules. Read the first post for an explanation.