MSE News: Amex hits thousands with £36 fee or rate hikes

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"Those faced with rises can reject them as long as they notify the lender before the jump comes into force in February ..."

Read the full story:
Amex hits thousands with £36 fee or rate hikes

catflea

I have decided to remove this comment.

INT1

Moving with the time and current climate I guess.

oakhouse13

I decided some time ago not to change my habit of a lifetime and ignore credit card deals no matter how good an introductory offer looks.

My theory on the current 13 month interest free offers from Tesco & Sainsburys branded cards is that both retailers know food inflation is in the pipeline. If they can switch customers to spending on credit for a year that's more difficult for consumers to manage than if they were budgeting with cash and more likely they will not cut back to offset the effect of inflation.

I asked the manager in my local supermarket if putting 13 months supermarket shopping on a credit card was usual and she said not and it would be a change in behaviour. The view that Tesco is on its own with promotions to give its Chief Executive a send off was also expressed. Once he's gone real terms will kick in.

Something similar happened with our local primary school when the headteacher retired. Test results rocketed. It makes it more difficult for the new person though.

timgallon

The article states that certain cardsholders will be transferred to the "Platinum Membership Rewards card, which has a £36 annual fee."

As a Platinum card holder for about 2 years plus now that annual fee is news to me. Either the article is wrong I am now due a £36 annual fee which wouldnt make it worthwhile having the card in the first place

catflea

Presumably thats a platinum cashback card though? so its a different beast

BiggaThanBen

timgallon wrote: »

As a Platinum card holder for about 2 years plus now that annual fee is news to me. Either the article is wrong I am now due a £36 annual fee which wouldnt make it worthwhile having the card in the first place

Ditto, I've got the Platinum Cashback Card, I am not aware of any annual fee there ..

catflea

Nope, no Annual fee on the cashback card. Only the Membership Rewards card.

dqnet

BiggaThanBen wrote: »

Ditto, I've got the Platinum Cashback Card, I am not aware of any annual fee there ..

Is that card worth applyin for..? Any good? Service? Useful? Acceptance? Or stick with MC or VA?

dtaylor84

oakhouse13 wrote: »

I asked the manager in my local supermarket if putting 13 months supermarket shopping on a credit card was usual and she said not and it would be a change in behaviour.

Why would you ask a supermarket manager about people's credit card habits? How on earth would he know when people pay off their cards?

oakhouse13

Why would it bother you that I did? Do you sell credit cards?

I also asked someone who works for one of the debt advice charities if putting 13 months food spending on a credit card introduces more risk you will overspend and she said it does introduce more risk because you are managing debt.

There is a problem with credit card debt in the UK. If at the start of 2012 those who have put 13 months supermarket shopping on credit all pay it off, all well and good. However, my suspicion is these cards are being marketed by supermarkets in the expectation that providing a huge supposedly free loan for 13 months will increase spending. It is possible that some people will find they cannot pay off the balance in full and they will be far worse off.

I would not take out a card and spend on it for 13 months and then pay it off in full because that service has to be paid for somehow and in my view it will be paid for by increasing charges to those with balances on their cards. How do you think the service is paid for?

Here are some telephone numbers of debt advice charities if you want to discuss this

CCCS 0800 138 1111
Credit Action 0207 380 3390
National Debt Line 0808 808 4000
Christians Against Poverty 01274 760720

If you check price comparison sites which sell credit cards for commission they have these cards as their best buy. They will not have factored in the increased risk of overspend in my view because their motivation is selling cards and they are long gone with their commission when far down the line consumers taking their advice find themselves worse off due to their own overspend but also because for some taking out this more complicated product was not in their interests.