Credit card bits: Tesco to refund Curve fees, Tesco closes its Premium card, Lufthansa closes its card

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Credit card news in brief:

Tesco Bank backtracks on charging Curve customers

As we noted a few weeks ago, Tesco Bank had started to treat purchases made using a Curve Card as a cash advance.  Which, of course, makes no sense.  This meant that Tesco Bank had started to impose a whopping 3.99% fee on all Curve transactions.

Tesco Bank has now backtracked.  The following statement has been posted on Tesco’s “Your Community” site:

We recognise that the application of this fee when a Tesco Bank credit card is used to fund Curve accounts has created some confusion for customers. We apologise to customers for this confusion. As a result, we have chosen to pause the charging of this fee in relation to Curve customers while we review this matter. Any customer who has been charged to date will be refunded, and should we make any future changes we will let our customers know.

Hopefully those of you were charged fees by Tesco Bank will soon see the money back on your card.

Tesco Premium credit card closing

Tesco drops the Tesco Premium Credit Card

A couple of weeks ago, I wrote this article about the Tesco Premium Credit Card.  I suggested that the card did not have much of a future given the closure of Tesco Direct in three weeks, because the main feature – 5000 bonus Clubcard points if you spent £5000 annually across all Tesco businesses – would now become trickier.  I know some people relied on putting large household purchases through Tesco Direct in order to hit the £5000 target.

It seems that Tesco Bank agreed with me.  The Tesco Premium Credit Card is being withdrawn from the market for new applicants.  I don’t know if it is being closed to existing cardholders too.

If you were on the fence about applying, the application form might still be live if you click here.  There is a 5,000 Clubcard points bonus (worth 12,400 Avios or 12,500 Virgin miles) for signing up.  I have been told that it will be gone by the end of today, if it hasn’t gone already.

Whilst this was definitely a niche product – and one I struggled to get excited about – it does have potential.  It may have suffered from poor marketing, because the free travel insurance benefit would have been valuable for a lot of mainstream card users who will not have Amex Platinum, HSBC Premier etc.  At a lower fee (say £50) or with a different benefits package, it may have worked well for a lot of HFP readers as a strong points earner.

I have updated our core ‘best credit card’ articles, all of which are listed on this page of HFP, to reflect this change.

Miles and More credit cards to close

MBNA announces closure of the Lufthansa Miles & More credit cards

MBNA has sent letters to the holders of its Lufthansa Miles & More card, including myself, saying that the cards will close on 28th July.

We will all receive the pretty decent Horizon Visa card which I reviewed here.

I will run an article tomorrow on alternatives to the Miles & More card.  However, even if you start to collect Miles & More miles via an indirect credit card route, it will not stop your miles from expiring.

Miles & More miles have a hard 3-year expiry – no exceptions – unless you have status or have a Miles & More credit card.  Two things could happen now:

Miles & More IMMEDIATELY (well, at the end of September which would be the first quarter-end following a month with no credit card miles going in) deletes all miles over three years old from your Miles & More account, or

A three year clock now starts after which your miles will start to disappear

We will, apparently, receive a separate letter from Lufthansa about what will happen.  I am worried that the first option is the one that will apply but hopefully they won’t be that silly.  I will see if I can get any news out of Miles & More although I am not very well connected there.

(Want to earn more miles and points from credit cards?  Click here to visit our dedicated airline and hotel travel credit cards page or use the ‘Credit Cards Update’ link in the menu bar at the top of the page.)

What is the best replacement for the UK Lufthansa Miles & More credit card?
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Comments

  1. Melvin says:

    For BETTER clarity (doh), my offer is for 33,000 miles total (15k + (3 x 6k))

    • Do you have a link to the generic landing page for the 3x6k offer? I’d like to find out if I could be eligible for it too (as an existing MBNA VS cardholder but not currently holding the premium card).

  2. the real harry1 says:

    O/T bits – Stobart fun & games (Southend Airport etc) – see FT story (and others) 🙂
    https://www.google.co.uk/search?client=opera&q=stobart&sourceid=opera&ie=UTF-8&oe=UTF-8

    Bit of a shame on the PR front coming just 1 day after RyanAir announced Southend will become another RA base

  3. More interestingly, does that mean the Virgin Atlantic sign-up bonus will increase eventually?

    • Don’t think so. Never say never but the discussions I had pre-launch with Virgin were based around the very tight economics here. Perhaps if the cards prove more profitable than expected ….

  4. Richmond says:

    I reached my Curve limit of £10K and they are not keen to upgrade it until I will build more history. Obviously I won’t since I won’t be spending on a card any more. So what are my other options to earn points/miles/whatever on HMRC payments?
    I think there was Tesco debit card giving points? Is it still around? Any other options to earn rewards on HMRC payments?

  5. CoolKestrel says:

    anyone have any updates on miles and more expiry after July 28? still awaiting a letter.

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