Yesterday we ran an article on the changes to the Lloyds Duo Avios credit cards which were sent to cardholders on Monday.
I said that I expected letters to follow to holders of the Lloyds Avios Rewards cards shortly. I now have details of what will happen.
This is what you need to know:
This is going to be a very slow process. Letters will be staggered between now and April 2019. It isn’t clear if this is due to Lloyds looking to avoid a squeeze on their infrastructure or if they are hoping to tie it in with your annual renewal date.
The changes will apply to your account 60 days from the date the letter is sent
However, if the changes were linked to your renewal date, there would be no reason for Lloyds to be telling people, as they are, that – as the new replacement Lloyds Avios Mastercard is free – you will receive a pro-rata fee refund on your existing card
If you have had a Club Lloyds current account for at least six months, you receive an extra 0.1 Avios per £1 (0.2 Avios per £1 for foreign spending)
Some customers may receive a retention offer at the time of the switch
There will be a 2.95% foreign exchange fee going forward (the card currently has 0% FX fees)
There will not be an upgrade voucher going forward
The Lloyds call centre is telling some people that there is a final cut off of 2nd February for spend to count towards your upgrade voucher, irrespective of your year end. This is NOT confirmed in writing yet so treat it as rumour.
The Avios earning rate on the new Mastercard will be the same as the one offered to ex-Lloyds Duo Avios cardholders:
0.4 Avios per £1 you spend in the UK
0.8 Avios per £1 you spend outside the UK
0.4 Avios per £1 transferred on a balance transfer (this is a new benefit – Lloyds Duo Avios cardholders used to get Avios on balance transfers but Lloyds Avios Rewards cardholders did not)
….. plus the extra 25% bonus for Club Lloyds current account holders.
One thing I don’t know is whether this new Lloyds Avios Rewards Mastercard will be reopened to new cardholders or whether it will remain exclusively for ex-Amex cardholders.
Lloyds Bank has set up a special website on the changes and you can find more details here.
With everyone getting 60 days notice and the letters being staggered over almost a year, there is no need to rush out and get a 0% foreign exchange fees card or get a replacement Avios-earning Amex. I would wait until you get your letter and then make a move.
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