MSE News: Aqua axes 3% cashback credit card – should you ditch and switch?

aleph_0

geoff_ss wrote: »

1) Halifax offered this card to those with bad credit history
2) It lured people them to borrow more than before with a 3% cashback
3) Halifax dumps the card leaving them with an even bigger debt & even less likelihood of getting a replacement credit card.

SAV Credit Ltd. issues the card, not Halifax. Halifax were just paid by SAV to do some backend admin/CS.

geoff_ss wrote: »

It could be argued that my 3% came from Halifax's abuse of others & if so its probably just as well it shut.

Just because they've stopped making a loss from you, doesn't mean they will stop trying to profit from their other customers.

It should be said, SAV Credit would argue that they are offering a service, the interest rate reflects the higher risk of the customer defaulting, that the sub-prime market is competitive, there's no guarantee that they will make profits.

Scrounger

Scrounger wrote:

I'm going to let the old Aqua card lapse on 22nd Jan. Once the cashback is received then post off the application for the new 0.5% card.
This way I won't have to wait for the anniversary to get my 'free' £100...

Atidi wrote: »

Doesn't the application form say it has to be received by Aqua by 31st December 2013 latest?

The replacement card is not a generally available card - you can't find it on their website.

I hadn't noticed that, thanks.

I think I'll chance it anyway (I have other cashback cards to fall back on).

Scrounger

geoff_ss

Worth also highlighting that Aqua Card can wipe out all your unpaid cash-back balance if you default (like slipping over their credit limits). As the limits are so low this is easy to do. This means its almost impossible to continue to use the Aqua card once the max £100pa cash back has been reached, as any breach, like a direct debit slip-up, will cost you £100 +£12 bad payment +£12 default.

lisyloo

As the limits are so low this is easy to do.

No it isn't !!
How hard can it be to keep a note of a running total.
If you can't manage that then perhaps the deal isn't suited to you.

This means its almost impossible to continue to use the Aqua card

Only if you find it hard to do faster payments and keep a running total.
If it's too hard for you then don't do it.

geoff_ss

lisyloo wrote: »

I believe merchants pay a lot more than this to visa/mastercard for offering credit cards.

You seem to have not considered the fact that visa/mastercard charge merchants and not just customers.

I think large merchants tend to pay 1%-1½% for taking credit card payments and Aqua would only get a proportion of that, so after costs I think a bit under 0.5% seems fair.

Customers normally pay nothing, so where did our 3% cash-back actually come from, unless from the 35% interest from those unable to pay off their balance & from £12-£36pm fines from people in trouble?

I did say I felt queasy, but admit not queasy enough to cancel this nice little earner.

lisyloo

Customers normally pay nothing

I think you're very wrong on that (like you are about the name of the company, what they get paid and how hard it is to keep a running total).
Savvy MSE customers might pay nothing, the rest of world is paying a lot of interest.

What evidence do you have that most customers pay nothing?
Credit card companies just wouldn't be viable at all if that is the case.
They have to cover fraud, section 75, bad debt and their costs.
It wouldn't be possible if most people paid nothing.
Where is your infomation coming from?

inmypocketnottheirs

Atidi wrote: »

This closure only affects the Aqua Rewards card that gave 3% cashback on purchases, and not any other Aqua credit card.

That probably also explains why you've not received the letter.

So agreed, it won't be a problem for you

My card is a reward card with 3% cash back.

guesswho2000

adindas wrote: »

Do you guys receive a letter from them informing the drop of Cash back ?
Until today I have not got mine

Yeah you should do, I got mine last week, quite a few received it before me, I was wondering the same thing as you until it arrived.

marks7389

Has anyone checked whether the cashback is rounded down to a multiple of £5 if you don't take the replacement card.

I know they do normally, but for me at least they carried over the remainder to my next earning year. Obviously they can't do that when they are closing it...

bubieyehyeh

adindas wrote: »

Do you guys receive a letter from them informing the drop of Cash back ?
Until today I have not got mine

Mine arrived today.