Cashback on Lloyds Credit Card downgraded

TwiceNightly

Hi all,

I just noticed that the Lloyds (and I presume Halifax) cashback credit cards now only offer a flat rate of 0.25% cashback on all purchases, no matter how much.

So they've taken away the tiered cashback where you used to earn 0.25% up to £4k and 0.50% after that.

The T's & C's on mine currently say the tiered amount so not sure if they'll downgrade my one any time soon, but definitely for new customers it's only 0.25% flat rate now.

WillPS

Good eye. On one hand it doesn't really move the needle much; it was always a hard product to recommend in a world where Barclaycard have a card which effectively yields 0.66%. On the other hand it was such a high spend needed to yield a rate which still wasn't market leading that I don't really know what the thought process was behind removing it; it must be a vanishingly small number of customers who reached the required spend.

Edit - has the welcome bonus offer also been removed? I note also that the cash back payout is now 'January' rather than the yearly anniversary payment previously.

TwiceNightly

Yes the welcome bonus has gone now too.

Thats a good point about the Avios card. On seeing this I applied to change my Avios Barclaycard over to the Rewards card now that it has the same cashback level but also the free overseas transactions - maybe I shouldn’t have?

Nasqueron

Wouldn't they have to tell you if they change the terms and conditions that you signed up for? Maybe it will be kept as a legacy for existing customers

crumpet_man

WillPS said:

 I note also that the cash back payout is now 'January' rather than the yearly anniversary payment previously.

I got this card in March 2022 and received the cashback in January 2023.

safe_hands2

I tried asking Halifax yesterday if this reduced cashback applies to existing customers and they didn't know, told me to contact the cashback team. Will wait to see if an email arrives.

Nasqueron

I had an old Halifax card with 0.25% cashback, it was my first CC and I've had it over 20 years, they bumped that to 0.5% after I had applied for the Lloyds one so I don't use it except as a BT mule card. I hope they keep the 0.5% for existing users as I would prefer not to have to apply for another card 

TwiceNightly

Seems like they might have changed my terms and I only get 0.25% flat rate according to the message centre chat thing. My original T's & C's say I get the tiered amounts so not sure how they changed that

Nasqueron

It's odd there are no notifications or letters issued

safe_hands2

Just spoken to Halifax customer services. They had no idea if the new 0.25% cashback will apply to existing customers. They said that if it does change, they will have to give 60 days notice of the change.

I was planning on making the Halifax cash back card my only card to use next year, now I'm not so sure.

artyboy

We just got replacement Lloyds cards in the post today (old ones had been compromised), and the letter that they came with still mentioned 0.5% cashback once we hit £4k/year spend.