Capital One axing cashback for some, cuts cashback rates for others

darren72

I only have a Lumia with Capital One and I received the exact same letter that had been scanned on a previous post.

booksurr

"Capital One has declined to say which of its cards, or how many customers overall, would be affected by the changes"

http://www.bbc.co.uk/news/business-32254736

oldagetraveller

Fingerbobs wrote: »

Thanks, that's certainly a scan of a letter, but it makes no mention of Luma or 4%, so impossible to tell whether this is the letter sent to Luma customers or not as the poster doesn't divulge this.

I have a Luma card and the letter I received on Thursday is exactly the same as that scan shown in post 55.:)
The account will be closed once the cashback has been credited to June's statement. Not a bad little earner while it lasted!

canterswest

If Capital One Classic Extra is affected, MSE was selling this card as its 2nd best cashback card recommendation up until 6th February, according to Internet Archives (MSE is a credit broker, licensed by the FCA). Some time between 6th Feb and 28th Feb, MSE removed Captial One from its cashback credit card guide.


I would be interested to know when MSE learned of Capital One's plans, why it removed the card from its guide in February and if it has information about changes to any of the other cards it is selling that it is not publishing.


What MSE said about Capital One Classic Extra in Feb 2015:




For those with poor history: 0.5% cashback + £10/yr bonus


Capital One Classic Extra*


The Capital One* Classic Extra is one of the few cards that has the cashback perk, but that also allows people with a patchy or limited credit history to apply for it. However, it also pays a lower cashback rate than many other cards in this guide.


Need to knows

[*]There's a £10 annual bonus credit for customers who make all bill payments on time, which helps to supplement the cashback.
[*]If you've a poor credit history, defaults and CCJs need to be more than a year old.
[*]Credits limit are low; you'll get between £200-£1,500 so it's difficult to earn lots of cashback.
[*]The interest rate is a huge 34.9%, so it's even more vital that you ALWAYS repay in full.



Eligibility Calculator
(MSE's free tool)


APPLY*
(at lender site)


Protect your credit score and check chances of getting card

[*]Stats box
[*]Key questions



Stats box

[*]Cashback: 0.5% + £10 bonus
[*]Paid out: Every January
[*]Max cashback/year: Unlimited
[*]Annual fee: None | Min spend: n/a | Card issuer: Mastercard
[*]Rate: 34.9% representative APR (See Official APR Example)
[*]Min income: n/a

SeduLOUs

canterswest wrote: »

I would be interested to know when MSE learned of Capital One's plans, why it removed the card from its guide in February and if it has information about changes to any of the other cards it is selling that it is not publishing.

I suppose it's possible that MSE learned the card would be closed to new applicants without being aware of the planned actions to existing customers.

I was going to change my Cap1 balance transfer to an Extra when the balance transfer ends in June, but in light of this news I have instead upgraded my Barclaycard Initial to the Amex 1% cashback (plus Visa 0.5% cashback) and will now close the Cap1 account once it is settled.

davidsuffolk

Sadly, I think moving to another cash-back card will be like going to stand under another tree in the rain. The same logic applies to all the issuers so I guess there will be a cull of all these cards very shortly. I just hope the Santander 123 I have just opened keeps its more limited cash-back at least for a while

planteria

you might be right, david. i am really hoping that Amex continue to play the game though:A

SeduLOUs

davidsuffolk wrote: »

Sadly, I think moving to another cash-back card will be like going to stand under another tree in the rain. The same logic applies to all the issuers so I guess there will be a cull of all these cards very shortly. I just hope the Santander 123 I have just opened keeps its more limited cash-back at least for a while

Perhaps you're right, but it only took a quick phone call to change my card type and I'm not opening a new account so it's worth it. The Barclaycard Amex is going to be secondary to my Santander 1-2-3 card to be used for the places that don't pay cashback with Santander anyway. Even if I only get 6 months out of it it's better than nothing.

hislan

I got my letter saying I wouldn't have cashback on my Cap 1 card past June. 5 mins later, I've applied for an AMEX Platinum card with 5% Cashback on first £2,500 (in 3 months) and 1.25% on everything thereafter, plus 2.5% cashback in 'anniversary' month if yearly spend is over £10k (mine is). It has a £25 yearly fee - but I went through QUIDCO, which is giving a £25 cashback offer - effectively paying my annual fee!

Bye bye Capital One......Hello AMEX!!! ��

skybluesaver

Yes i agree with you, i was thinking of applying for the Aqua Reward for the 0.5% cashback and fee free abroad but feel that will also be pulled soon and i don't want anymore searches on my credit file at the moment.
Just hoping the Halifax Clarity with their reward payment of £5.00 per month when £300 spent on it continues.
Still not heard anything about the cashback disappearing on my Capital One classic extra but probably only a matter of time.