MSE News: 'Irresponsible' Asda pushes costly credit card cash for Christmas

chattychappy

Irresponsible for banks not to do what they can to make profits!

callum9999

ChopinonaBudget wrote: »

What the flyer also fails to mention is that interest rates are paid off in the order in which they are accrued. In other words, if you owe £1000 at 14.9% then spend 100 at 27%, but take a year to clear £1000 (worse if you're only ever paying the minimum), then you are paying 27% continually on that £100 for all of that time.
Unless that rule was disallowed? Somebody correct me if I'm wrong?
And let's face it, anybody who is in the desperate position of needing cash on a credit card is highly unlikely to have a nice clean £0 paid-off-in-full balance at the beginning of each month...

You are wrong. And have been for about a year now!

Though that's not exactly how it used to work either. Your example is right, but it used to be done by paying off the cheapest debt first, not the order in which you do it. I.e. if you reverse the order of your example, you'd still be paying off the 14.9% before the 27% (under the old system - you now pay off the 27% first regardless).

ChopinonaBudget

aldredd wrote: »

I thought it was always highest interest first now - no exceptions.
Happy to be corrected though.

Maybe it's changed. Happy to be corrected too! Perhaps the flyer should mention that too.

ChopinonaBudget

aldredd wrote: »

I thought it was always highest interest first now - no exceptions.
Happy to be corrected though.

callum9999 wrote: »

You are wrong. And have been for about a year now!

Though that's not exactly how it used to work either. Your example is right, but it used to be done by paying off the cheapest debt first, not the order in which you do it. I.e. if you reverse the order of your example, you'd still be paying off the 14.9% before the 27% (under the old system - you now pay off the 27% first regardless).

I stand corrected!

miller

callum9999 wrote: »

As ASDA pointed out, it was Sygma who sent this out - not ASDA.

Which exposes another problem of when companies "white label" other's products making it unclear to consumers who is ultimately responsible.

aldredd

callum9999 wrote: »

As ASDA pointed out, it was Sygma who sent this out - not ASDA.

Sorry, but that's a poor response. Whether Asda sent it themselves or not, it had their name on it, so they should ensure the relationship with their suppliers are such that mistakes with their name on it do not happen.

Wywth

Asda didn't get to being part of the world's largest, and hence arguably most successful, retailer without picking a pocket or two.

Asda closed (or is about to) my credit card. Seems like they fell out with Santander or something. It sounds like they are about to fall out with Sygma/Creation now.
Anyway I now have an Aqua Reward card thanks to this site :money:

callum9999

aldredd wrote: »

Sorry, but that's a poor response. Whether Asda sent it themselves or not, it had their name on it, so they should ensure the relationship with their suppliers are such that mistakes with their name on it do not happen.

It's not remotely a poor response - it's the truth... Though I'm aware the truth plays only a tiny role in the decisions the majority of people on here take...

They should indeed, and have said they are now investigating this - presumably to make sure it doesn't happen again. Just like you make mistakes, other people (remember ASDA is just an entity - it's a normal human being working for ASDA responsible for this) do too.

I wasn't saying I had no issues with this criticism, merely just with the flat-out lie MSE used to grab attention. But then I should have learnt to expect that from them by now! And not just the article, Martin Lewis himself has evidently tweeted "Shame on Asda, pumping people to take cash out on credit cards..." - when they have done no such thing. At least you could argue with this headline that Asda have been irresponsible by not checking up on Sygma enough, Martin's comment is just a blatant lie (almost akin to libel!).

StevieJ

Not 100% accurate article, not all credit cards charge for cash withdrawal e.g. Halifax Clarity.

aldredd

callum9999 wrote: »

It's not remotely a poor response - it's the truth... Though I'm aware the truth plays only a tiny role in the decisions the majority of people on here take...

They should indeed, and have said they are now investigating this - presumably to make sure it doesn't happen again. Just like you make mistakes, other people (remember ASDA is just an entity - it's a normal human being working for ASDA responsible for this) do too.

I wasn't saying I had no issues with this criticism, merely just with the flat-out lie MSE used to grab attention. But then I should have learnt to expect that from them by now! And not just the article, Martin Lewis himself has evidently tweeted "Shame on Asda, pumping people to take cash out on credit cards..." - when they have done no such thing. At least you could argue with this headline that Asda have been irresponsible by not checking up on Sygma enough, Martin's comment is just a blatant lie (almost akin to libel!).

But it's not the flat out lie you imply it is - Fact: A mailing when out with Asda's name on, promoting a product they are linked with / paying for / profiting from (ie, it wasn't unsolicited).

Doesn't matter who sent it - it was sent with their name on, so of course they should receive their share of the criticism. Yikes it's like an advert being wrong, and blaming the advertising agency.

Tad extreme an example, but Deepwater Horizon, anyone? (operated by 3rd party, but in BP's name - BP took the flak for it)