Company changed card halfway through contract

dilby

Hi all -

I recently took out a business credit card (technically charge card) with Capital on tap. It was a mastercard, and it's main selling point to self employed was that it could be used for HMRC services such as tax payments without having to pay fees as HMRC saw it as a debit card. I signed up and paid the annual fee up front, but halfway through the first year they have notified me to say they are completely changing the product; the mastercard changes to visa and it will now be a full blown credit card, and consequently HMRC will require fees. This makes the product useless to me and loses the selling point, which sales reps first promoted to me.

I complained, pointing out this isn't what I signed up for, and asked for my money back, pro-rata if required. However they've told me because I have drawn out the avios points I accrued with the card so far I cannot get a refund.

This doesn't seem fair to me, as I haven't had a full year of value out of the product as I signed up for, and I only drew out the points I fairly earned in that period.

Does anyone have any thoughts to the contrary on this, and know of the best route to take this further?

Thanks!

[Deleted User]

Seems fair to me.

Why would you incur charges with it changing from MC to Visa?

dilby

I think it's because it was previously a charge card and now it's a credit card. I've called hmrc and also spoken to capital on tap and both have confirmed that there will now be fees charged. Basically they are going to cancel my card shortly and send me a new one.

mjm3346

Might depend on what's in your contract as to the type of card and their ability to change it.

Penelopa.Pitstop

Did you complain officially or just complained while talking on the phone? I suggest raising official complain to get pro-rata refund of annual fee for the time when the card changes.

I don't see how using Avios is stopping pro-rata refund. You earned avios while using charge card but now it will be credit card which will be useless for your purposes.

dilby

Thanks, yes I raised a complaint via email to their complains team, and that was their response. So not sure where to take it next!

molerat

Surely their response to your complaint gives the next steps available to you ? (If it does not then that is reason for further complaint !)

18cc

Is the complaint response a final deadlock letter?

Ergates

dilby wrote: »

Hi all -

I recently took out a business credit card (technically charge card) with Capital on tap. It was a mastercard, and it's main selling point to self employed was that it could be used for HMRC services such as tax payments without having to pay fees as HMRC saw it as a debit card. I signed up and paid the annual fee up front, but halfway through the first year they have notified me to say they are completely changing the product; the mastercard changes to visa and it will now be a full blown credit card, and consequently HMRC will require fees. This makes the product useless to me and loses the selling point, which sales reps first promoted to me.

I complained, pointing out this isn't what I signed up for, and asked for my money back, pro-rata if required. However they've told me because I have drawn out the avios points I accrued with the card so far I cannot get a refund.

This doesn't seem fair to me, as I haven't had a full year of value out of the product as I signed up for, and I only drew out the points I fairly earned in that period.

Does anyone have any thoughts to the contrary on this, and know of the best route to take this further?

Thanks!

Check the contract you signed - it may or may not include a clause stating they can do this.

System

I agree with the others about following the complaint route.

One thing I would point out is that most legal protection is for consumer contracts - as you are acting in a business capacity, this won't apply.

withaspritz

Do HMRC still charge extras fees for credit over debit? I thought that was now illegal?