Saga card ending?

in Credit Cards
44 replies 7.6K views
Yesterday I spoke to the current provider of the Saga credit card (Allied Irish Banks) and was told they are no longer accepting applications for the Saga card and they are not renewing the contract with Saga. So anyone hoping to apply for one may find it impossible at present. Saga will no doubt find another provider but I am wondering if the terms and conditions may differ, especially the overseas charges. One to watch.
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  • edited 14 January 2019 at 2:13PM
    graymanukgraymanuk Forumite
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    edited 14 January 2019 at 2:13PM
    Unfortunately I didn't see this helpful post until now. Saga wrote to me today (14/1/19) to say that the Saga/AIB card is ending at the end of March 2019 and, although they might launch a replacement later in the year, there isn't one right now. For me this is just very inconvenient - I don't have a large balance. However, it seems very poor timing and short notice to to tell people they have just over two months to pay their outstanding balance, especially just after Christmas. If Saga knew back in August 2018, why wait until now to communicate? Given that Saga's customers tend to be retired, finding another card could be difficult for some people. I'm not impressed.
  • zx81zx81 Forumite
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    There's no requirement to pay back within two months.
  • graymanukgraymanuk Forumite
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    I based that on the following wording in the letter from AIB:

    "If you owe money on your credit card when our agreement with you ends on 28th March 2019 all of your outstanding balance (including any fees, interest, and other charges which have been applied to your account as part of that outstanding balance) will become due and owing in full. However, if after your account is closed and there is still a debit balance we may decide to transfer the outstanding balance to a third party."

    So, customers will indeed owe the whole balance but I suppose terms depend on the as yet unnamed third party.
  • A shame, a card provider that was honest with it exchange rates when using it overseas. I am now having to find a provider who can provides the same service i.e. the FX rate on the time & day it is used and charges.

    There is also the possibility of being accepted in the meantime by another provider as Saga Personal Finance are saying in their accompanying letter hope we can welcome you back to our brand-new card service later in 2019.

    I wonder what numpty thought the logistics through on this and letting their customers go without a card whilst launching a new one months later, couldn't they have planned a seamless changeover?
  • Marmaduke123Marmaduke123 Forumite
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    I wonder if this is in some way Brexit related, given that it's AIB? We haven't had a letter yet, so thanks for the headsup.

    We' ve had our Saga cards for a long time now, although they've been less used recently as we use Barclaycard with no cash withdrawal fee as well as no transaction fee. Still need a backup though, in case there's a problem, so will be looking around.

    It looks as if Saga haven't managed to find a new provider who will allow the same benefits. I can't imagine they wanted this hiatus.
  • SystemSystem Forumite, Community Admin
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    A shame, a card provider that was honest with it exchange rates when using it overseas. I am now having to find a provider who can provides the same service i.e. the FX rate on the time & day it is used and charges.

    There is also the possibility of being accepted in the meantime by another provider as Saga Personal Finance are saying in their accompanying letter hope we can welcome you back to our brand-new card service later in 2019.

    I wonder what numpty thought the logistics through on this and letting their customers go without a card whilst launching a new one months later, couldn't they have planned a seamless changeover?

    In these situations, it's not always clear who 'owns' the customers (Saga or AIB) so it's subject to negotiation. They obviously weren't able to come to an agreement.

    I doubt Brexit is a factor as they can always use their NI banking license (First Trust)
  • pittcitypittcity Forumite
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    Received our letter this morning.

    We use our Saga card on holiday and for foreign currency transactions.
    We're now having to apply for a new credit card as, for example, cruise lines will not take debit cards as guarantees of payment.

    The new card had better offer something spectacular as I will not be returning to Saga otherwise.
    "Doing nothing is very difficult..........you never know when you're finished!"
  • JosephKJosephK Forumite
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    As per #5 - changeover to any new card which may be introduced should be seamless not with the gap that seems to be about to occur. Badly organised by either Saga or AIB (suspect the former).

    In expectation of no new card being introduced in the immediate future, looks like we'll have to look elsewhere such as Barclaycard Platinum or Halifax Clarity for one to use for foreign currency transactions.
  • Nick_CNick_C Forumite
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    If you have a smartphone, then look at Tandem. 0.5% cash back, and no fee on foreign currency transactions.
  • We too only learned this morning of Saga’s intention to close down their card. I echo the other posts and say it is rediculously badly managed and very unfair to bounce-out account holders with so little notice - especially some who doubtless have significant balances to settle right after Christmas. Neither Saga nor AIB should emerge from this without bad press.

    An aside note is my ‘irritation’ at having worked for some years to build up a useful credit limit - only to have that whipped away by this decision. It’s easy enough to get another similar credit card but impossible to start out with the same credit limit as gained at Saga. 😡😡
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