Saga axes popular Platinum Visa credit card with two months’ notice – and customers will find it hard to replace
- The company is ending its agreement with Allied Irish Bank who run the card
- The card – popular with over-50s – offered fee-free transactions and good APR
- Saga says customers have two months to pay off debt and some are worried they might not be able to find a good alternative
- Will you be hit? Get in touch: george.nixon@thisismoney.co.uk
Over-50s in possession of Saga’s Platinum Visa card have just two months to clear their debts and find themselves an alternative after the company announced it was discontinuing the product.
The account offers benefits including no overseas card fees, 55 days of interest-free cash withdrawals and an interest rate of 11.9 per cent APR.
It is being withdrawn as Saga has ended its agreement with Allied Irish Bank, who had run the card on the company’s behalf.
Saga’s Platinum card is available to the over-50s, and offers no fees when abroad, an APR of 11.9% and 55 days interest-free cash withdrawals. However it is closing on 28 March
In a letter to cardholders, AIB said that any outstanding balance, including fees, interest or other charges, would become ‘due and owing in full’ on 28 March.
It added that if there was still money owed after an account was closed, the bank ‘may decide to transfer the outstanding balance to a third party.’
One reader told This is Money that the closure raised a number of issues for cardholders.
As well as losing out on a card with a range of benefits that might be difficult to match, Platinum cardholders who are retired or semi-retired may struggle to qualify for a new credit card that has a mandatory income requirement.
A This is Money reader said: ‘Many cardholders have a good credit score built up over time, having held this card for a long time, but they no longer meet the “salary” criteria and are suddenly trying to work out how to manage their lives without the card.
‘There do not seem to be any cards using savings or investment income in place of “salary” in their requirements.
‘Some cards permit pension to be used as salary but that will often be lower than the minimum requirement.’
Andrew Hagger, of personal finance site Moneycomms, says the Barclays Platinum and Halifax Clarity cards would be good replacements for people who regularly travel overseas.
He added: ‘These cards won’t offer the travel discounts, but just because someone is over 50 it doesn’t mean they won’t be eligible for a mainstream credit card – as long as they have a decent credit rating and a regular income.’
The two main options open for most will be to simply pay off the outstanding balance, or, if this is not possible, shift the debt over to a 0 per cent deal and pay it off gradually.
A Saga spokesman said: ‘Customers are being contacted to let them know that their accounts are set to be closed, giving them enough time to take out a card with another provider if they wish to.
‘In line with the customers’ terms and conditions, if there is an outstanding balance on the card customers will have a 60-day notice period to either settle the balance or transfer their card balance to a new provider.
‘AIB, who provided the Saga Platinum card are a responsible lender and as such will have taken into consideration individual circumstances and affordability when issuing the card and setting appropriate spend limits.
‘Therefore we believe that the vast majority should have no problem obtaining a card with similar credit facilities elsewhere. We are working on an exciting new card to launch later this year and will be in touch with customers as soon as applications are opened.’
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