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Credit card company Creation encourages Christmas cash withdrawals

Simon Ward
by Lovemoney Staff Simon Ward on 11 December 2012  |  Comments 4 comments

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 encourages Christmas cash withdrawals

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 cards

Creation issues credit cards for a number of brands including:

  • Asda Money
  • Flybe
  • Marriott
  • Maximiles
  • 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.

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Comments (4)

  • oldhenry
    Love rating 343
    oldhenry said

    It will the company's Christmas magical, that is what they mean of course. It is so simple to see through teh scam merchants outthere.Nobody should use a credit card at all if they are not paying it off in full each month. They should arrange a bank loan at a reasonable interest rate. You use a credit card for convenience and getting points from Tesco etc. Then you need a separte one to use abroard , like Halifax, that do not stuff you for commission.It is hard to have a holiday in the US without a credit card , you could on a package I suppose, if you hire acar, check in hotels it is much simpler to have a card. But you must pay if off by Direct Debit so that you do not forget.

    The interest rates are usury and how a civilised country allows them surprises me, but then politicians have so much support for their parties from business, what do you expect? Loyalty to the voter? Ho, ho.

    Report on 12 December 2012  |  Love thisLove  0 loves
  • tuttogallo
    Love rating 99
    tuttogallo said

    Radio 4's money box programme has picked this up and creation have been forced to make a grovelling apology.

    This is just the latest example of the financial industry preying on the poorest in our society. Which section of society is most likley to fall for this one and actually withdraw £300 to fund their Christmas? and to believe that there actually is a free lunch: answer, those with the least financial ability and who are they? The poor.

    This is almost as bad as those poor Amercians who were sold teaser rate mortgages.

    Report on 15 December 2012  |  Love thisLove  0 loves

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