Anger from Lloyds TSB cash back credit card customers

Cardholders that have a Lloyds TSB cash back credit card have expressed anger over a recent announcement by the banking giant that the Create Card cash back program is to be scrapped.

Thousands of loyal customers that have been using these cash back credit cards have received a letter from Lloyds TSB informing them that the deal is now to be scrapped and that their account will be moved to another Lloyds TSB credit card – without any cash back benefits or facilities.

The Create Card from Lloyds TSB has been in operation for a number of years, and many people opted for this deal because it allowed the consumer to choose an interest rate and a cash back rate that suited them.

Consumers with these cash back credit cards are able to earn up to 0.5% cash back on purchases, but this is to become a thing of the past for these customers. Instead, their accounts will be transferred to the Lloyds TSB Platinum card unless they decide that they would rather close the account altogether.

Officials from Lloyds TSB have stated that any cash back that is still due to cardholders will either be applied to the new platinum card or will be deducted from the final balance for those that plan to close their accounts.

One Lloyds TSB official stated: 'It's a branding issue. It's one of a number of cards we have offered over the years but we want our cards to have more of a Lloyds TSB brand and fit.'

However, cardholders that have been enjoying the flexibility and cash back potential of these cards do not seem to see things in quite the same way.

One angry cardholder stated: 'It's another example of High Street banks calling all the shots and the customers getting nothing.'

Tom Smith
27th February 2007

More Information:

• Cash Back Credit Card - General Guide
  It seems almost too good to be true; a credit card company giving back money to the user just for spending it in the first place! However, as with all good deals, there are terms and conditions.
• Cash Back or Rewards
  In the battle for new customers, credit card companies are offering to reward users for simply spending on their cards. The two most attractive systems seem to be cash back and rewards.
• Cashing In On Credit Cards
  Credit cards come with a wealth of incentives to attract new borrowers. These include points, long term low interest rates and 0% balance transfer rates. The balance transfer rate is perhaps the most attractive and it has been used to advantage by many credit card users. Two good examples are credit card tarts and stoozers.

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