The death of cashback, air miles and 0% credit card deals?

Archi_Bald

Apologies if this is old news but I have not seen this mentioned anywhere else: http://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards/11254013/Death-of-cashback-air-miles-and-0pc-credit-card-deals.html

The outcome of the FCA inquiry is predictable.


EDIT: OOOPS, posted on wrong board, should be in Credit cards. Perhaps a board guide can move it? Ta muchly

stator

We've been hearing this sort of thing for years. First they tell us that free bank accounts will be abolished, they were wrong. Now they are telling us the CC deals are soon to go? I'll believe it when I see it.

Thrugelmir

stator wrote: »

We've been hearing this sort of thing for years. First they tell us that free bank accounts will be abolished, they were wrong. Now they are telling us the CC deals are soon to go? I'll believe it when I see it.

Then start believing it. The regulators are after cross subsidisation of products. PPI was the saviour of mortgage lenders. Thats why so many have packed up and gone home. .

Kim_13

So what? The interest rates were known by the less prudent when they took out their cards and are determined by the risk of lending based on their circumstances, not on how much profit the prudent are making out of cards. They're hardly a payday loan; they're the real problem.

Also, Capital One Classic Extra is a subprime card. It's possible that those paying the high interest are reclaiming some of their fees in cashback and the £10 bonus for paying the minimum payment in time every month.

LplateSaver

Yeah I agree with Kim, it's incentive for people to get out of debt. I saved up and paid off my default in the hope of someday being eligible for a perks card. At the minute I'm on a very low income but use the capital one card for the cashback. I hope they keep their paternalistic ideas to themselves.

Thrugelmir

Kim_13 wrote: »

They're hardly a payday loan; they're the real problem.

FCA has chewed up Payday lenders as they are dropping like flies. Previously addressed mortgage lending. Credit cards appear to be next.

InsideInsurance

Some of the highest reward cards though are issued by banks that dont have a sub prime offering (ie AmEx)

It wont be the end of the reward cards but it will probably drive moderate changes in the practices/ availability etc