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

maustinsj

I had a Blue card for a few years, then swapped to the Platinum Cashback card. I've now swapped to the Platinum Business Cashback card as this pays out up to 2% cashback, plus 5% for the first three months. It does have a fee (£28 I think) but the extra cashback on top of what you get - even ignoring the 5% bonus - more than makes up for it when compared to the normal Platinum Cashback card.

As not everyone takes Amex (usually small retailers), I also have a CapitalOne World Mastercard as this pays 1% cashback too.

£600 cashback this year so far!

GettingItRight

I just read the article about Amex. Does the £36 fee apply to all of their cards issued by the various retail (high street) banks?

I only ask as I have an Amex Airmiles card (Lloyds TSB), which I have just started to use again - mainly because I clear the balance every 2 weeks online. The idea of paying a £36 fee to have a credit card makes it seem pointless to have.

callum9999

oakhouse13 wrote: »

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.

You could have asked a 10 year old that question and I'm sure they could come up with the same answer. Is it not common knowledge that more and cheaper credit deals tempt people to spend more? And these credit card deals have been going on for years.

I take it you also won't buy any special offers in supermarkets? After all, the money lost from deals is factored into other items that people who didn't get the deal are going to buy. Again you are stating the obvious - everyone knows it's paid for by people who can't/don't want to manage their debts properly (as well as other things like transaction fees etc.).

Obviously they haven't factored it in, just like shops/takeaways don't worry about obesity when they put special offers on junk food. If the product wasn't in their interests then it's their own fault for taking out financial products they clearly aren't competent to use (not everyone obviously - you can unexpectedly lose your job, get a big emergency bill etc. etc.).

ProbableSpam

Amex is a dinosaur - it should have dies out ages ago but the message hasn't reached the brain - yet.

If you want to pay through the nose to give yourself the illusion that you're James Bond then keep paying Amex to massage your ego. Otherwise get a sensible credit card.

Typhoon2000

ProbableSpam wrote: »

Amex is a dinosaur - it should have dies out ages ago but the message hasn't reached the brain - yet.

If you want to pay through the nose to give yourself the illusion that you're James Bond then keep paying Amex to massage your ego. Otherwise get a sensible credit card.

? ~ Its the Platimum cash back card has the highest cash back rate for me and no anunal charge, accepted everywhere I shop and has the best customer service of any credit card I have come across. Why would I change. James Bond carries a Barclaycard I think...

INT1

Yeah I have platinum Cash back.

Good user benefits, nothing at all about being James Bond!

Customer service is v good too, had a problem with my hotel room, one call to them got me a full refund (goodwill credit) and it was through no fault of their own I experienced bad service.

roddydogs

With Platinum, after the 5% 3 months offer, its "up to" and not as good as Capital 1s 1%.

johnny_storm

Ive written my letter telling them to close the account.

Beluga_2

My advice: if you have any Amex card at all and you've recently received a letter about your card account, check it carefully. It seems easy to miss the important details.

I got a letter through recently about my Gold Credit Card (not cashback or membership rewards). Amex are switching me to the Platinum Credit Card with membership rewards, easy online management, etc., etc.. So far, so good.

It's only further towards the bottom of the letter that a £36 annual fee is mentioned, and it isn't exactly prominent (to my eyes). And if you don't turn over and read the smaller print on the back of the letter, you'd never know the interest rate is being hiked to 26.8% APR (currently 19.9%).

Maybe someone else will interpret the letter differently, but if I was skim-reading reading through my post, I may not have spotted this. Be careful out there.