Reply To: Creation Financial Services bashing

[Lady London]

JDB wrote:

@Lady London immediate closure of a credit card account and/or closures under two months notice cannot be unfair contract terms as that has been expressly provided for in law for nearly 50 years – s98A of the Consumer Credit Act 1974 and that section does not require any form of appeal or independent review. As previously discussed, the 60 day closures never require the card provider to give any reasons whereas immediate closure must usually be “objectively justified”.

Your strong views on Creation will be as well known as mine, but I am at a loss to understand why you remain silent re the multiple recent reports here of Amex closing accounts with 60 days notice and/or immediately, immediately stopping points/voucher accrual and removing any points already earned on the account. How does this differ from Creation’s actions?

Hi JDB we’ve covered this before. My point is that if such a provision to close an account without the normally required notice exists, and it’s unilateral by the provider and no right of appeal or independent review, and the provider does not have to state the reason, then to avoid provider abuse then what the cardholder would have received in the notice period not given still has to be provided.

Otherwise providers are just going to close accounts and avoid paying out benefit.

And if any earned benefit is to be withheld, and IMV even partially earned benefit, then the base case should be that in a summary closure this needs to be paid out too. Simply because otherwise it’s unfair in a unilateral closure especially if the provider is not required to state and prove why.

I’m more interested in Creation as I come across them in other ways, and not very interested in Amex.