Credit card company Creation encourages Christmas cash withdrawals
Creation has sent out flyers to customers, which say that taking out money from a cashpoint will lead to a "magical" Christmas.
Credit card company Creation has been sending out flyers in the post encouraging customers to withdraw money from ATMs this Christmas, despite the astronomical cost.
As a customer of one of its cards, I’ve been sent one of these flyers encouraging me to “pop down to your local ATM and use the cash facility on your card”. The flyer then merrily tells me that “You can withdraw up to £300 a day” and suggests that this will “Make this Christmas magical!”
But this is a very expensive way to borrow and is likely to make Christmas miserable, not magical. Here’s why.
Using my credit card to withdraw cash will cost me a cash handling fee of 5% of the amount I withdraw or £5, whichever is greater. I will also pay interest of 18.9% from the minute the cash leaves the ATM until I repay it, as there’s no interest-free period for cash advances. The interest rates on other cards for other customers could well be much higher, depending on your credit rating.
The flyer doesn’t mention the interest charges at all, except to note in the terms and conditions that “Account terms and conditions apply”.
If I don’t want to withdraw the money from an ATM myself, the ‘helpful’ team at Creation will transfer it into my bank account for me if I call a premium-rate phone number.
Creation issues credit cards for a number of brands including:
- Asda Money
- Various football clubs, including Everton, Fulham, Leeds United, West Brom and Wolves.
It also has its own range of branded credit cards.
We are aware of flyers being sent out to Asda Money and Flybe card customers.
At a time when many of us are already struggling with the cost of Christmas, this is an irresponsible and thoughtless piece of promotion.