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Forums Payment cards Other payment cards Creation Financial Services bashing Reply To: Creation Financial Services bashing

QFFlyer 160 posts

You think Creation lose out to the tune of £millions? That would be hundreds of millions of pounds of manufactured spend. Not a chance in hell. Maybe a few thousand pounds, but unless you know more about their contract with IHG and the amount they pay for individual points (maybe they bull them in chunks, were looking like running out of them so just turned off loads of accounts) then I highly doubt the cost of this to Creation.

Creations IHG Black Card was broken from the start, to pay off the credit card Creation allowed the use of a credit card which they most likely had to pay out their 0.3% which is completely bizarre and wiped out any revenue they would have received from the Interchange fee. They were paying 2 points on the black card IIRC, its been mentioned they must have been paying 0.3p per point or similar to IHG so thats 0.6p per £1 spent aka 0.6%, so they were losing £60 for every 10k spent, so after 16.5k spent thats the annual fee wiped out and they would be losing money after that as well as having to pay out the free night certificate (£XXX?)

They were either confident that they would make money from interest balances or just completely incompetent at designing the product in the beginning and thinking of a worst case scenario, they now seem to think its ok to blame the consumer for their incompetence regardless of any MS or not.

I highly doubt that any NSI or similar deposits reached close to 166m in transactions which would equate to a £1m loss, in fact I would be surprised at a figure of 10% of that.

I woudln’t be so sure about not even reaching 10%. Maybe £166M is a stretch, but £16.6M isn’t, not when 1 person could have done 2-3% of that alone, easily, every year.

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