Creation Financial Services, issuers of the IHG Rewards and (closed to new customers) Marriott Visa credit cards, made a very aggressive move on Friday in its dispute with Curve Card.
It appears that the majority of credit cards which had been used with a Curve Card are being closed.
One call centre agent said that 1,800 cardholders were impacted. We cannot confirm this number.
The closure letter states that cards are being closed on 3rd December.
Based on reader discussions with the call centre, but not confirmed in writing by Creation:
- annual free night vouchers on the IHG Rewards Premium credit card will still be desposited if the cardholder spends £10,000 before their card is closed
- there will NOT be a pro-rata refund of the £99 annual fee on the IHG Rewards Premium credit card – although you would be free to dispute this with the Ombudsman
If you cannot trigger your free night voucher by 3rd December but would otherwise, you arguably have a case for a full refund of your IHG Rewards Premium £99 fee for the current year.
Why is Creation banning Curve Card holders?
It isn’t entirely clear what is driving this, although I was told by an independent industry consultant that it was being pushed by National Savings.
Curve Card, for those who don’t have one, is a debit card which allows you to recharge transactions to a linked credit card. You can learn more about Curve Card in this article.
This meant – most specifically – you could deposit money into National Savings and have it charged to a miles or points earning credit card as a purchase. Most Curve Card holders had a £9,000 daily limit albeit capped at £1.8 million per year.
Whilst Curve Card had always had blocks in place for payments to banks, there were certain grey areas such as National Savings, HMRC and various investment firms such as Hargreaves Lansdown.
Creation had initially sent out text message to cardholders a few weeks ago saying that its cards could no longer be used with Curve Card. I was told at that time that mass account closures would follow, and here we are.
One problem is that the ban is catching many people who used Curve Card purely for Apple Pay functionality. It was the only way to add your Creation card to Apple Pay.
For clarity …. the free IHG Rewards credit card is still open to new applicants. Creation is not pulling out of the UK and is only closing these 1,800 (TBC) accounts.
Time to pick up 30,000 Virgin Points?
If you are now looking for a new Visa or Mastercard, don’t forget the excellent 30,000 Virgin Points bonus currently offered on the Virgin Atlantic Reward+ credit card which has a few days left to run. Our article is here and you can apply here.
Want to earn more points from credit cards? – December 2022 update
If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:
You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.
British Airways American Express Premium Plus
25,000 Avios and the UK’s most valuable card perk – the 2-4-1 voucher Read our full review
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review
The Platinum Card from American Express
30,000 points and unbeatable travel benefits – for a fee Read our full review
Virgin Atlantic Reward+ Mastercard
15,000 points bonus and 1.5 points for every £1 you spend Read our full review
Earning miles and points from small business cards
If you are a sole trader or run a small company, you may also want to check out these offers:
American Express Business Platinum
40,000 points sign-up bonus and a £200 Amex Travel credit every year Read our full review
American Express Business Gold
20,000 points sign-up bonus and free for a year Read our full review
British Airways Accelerating Business American Express
30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review
Capital On Tap Business Rewards Visa
10,500 points bonus – the most generous Avios Visa for a limited company Read our full review
For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.