Reduction in Transfer Rates to Velocity/Krisflyer

[daveozsydney]

I managed to send mine ok using messages (just deleted some quote " characters) and the special character message disappeared

 

[N860CR]

Yeah it's the "quotes" that do it. Makes it very hard to quote T&Cs etc... Perhaps that's the point. Also, if replying to an email, you'll probably have to delete their message as it generally includes some of these characters.

Everything at Citi is difficult.

 

[Eggsbenedict]

Will be drafting the legal demand letter in the next day or so!

As per last couple posts whilst we cannot mount a 'coordinated' response we might well be able to mount a campaign where complaints closely 'mirror' each other.

If there is a legal minded person online who might be able to draft a complaint email that all could use then we might be in a stronger position.



Be aware that before you can head off to FOS you must first as agreived party give the financial institution in question a chance to address your concerns - if no common ground can then be found you can then lodge a FOS complaint.

Probably the prudent path is as many have already begun - phone call to Citi to verbally express your disgust in strong but polite terms - to a Manager if you can get passed onto one - then follow up email clearly outlining the extent of the devaluation of your warehoused Citi points - then if no satisfaction off to FOS.

No doubt we / someone needs to bring this to the attention of the tabloid current affairs programs etc as they love whacking banks.

However it turns out I wish everybody the best on your 'road to recovery'.

I have just completed a complaint with FOS, had a return call from CITI bank, all the guy wanted to do was spout a contrary T&C. I called back, was going to cancel the card (only just got it two months ago) was offered 50% refund on card fee if I didn't or NO REFUND if I did. Easy choice, however I do not see the reduced annual card fee as compensation for my lost points or the earning I would have gotten with 3 months notice, it just reflects the value of the card ongoing. Complaint to FOS requests the 90 days notice as per their T&C;s

 

[daveozsydney]

Hi, Adam. We regularly review the rewards program and the cost of rewards made available in the program. From 1 Nov 2015, transfers to Velocity or Krisflyer programs have been changed based on recent review. We have notified our customers on our rewards website at the time you redeem your Reward. For further details, you can contact us on 13 24 84 at any time. For T&Cs, please see clause 6.2, point 3:

This is what the they told me via Facebook.

I'll post what they come back with for me, but I suspect escalating to someone higher up will get a response. I think they are clutching at straws after getting so many complaints. Points are not classed as goods or services. Toasters, meals and the like are - so fair enough if the Tefal kettle goes up in price - these things happen. But a major change, material change in the conversion rates would be covered by 6.2, point 1. Singapore Airlines would have given them notice or they should have signed a contract with Krisflyer holding a notice period in line with their own terms and conditions for customers..

Aside from the legal argument, it's not a great way to retain customers....

Anyone here got a citigold relationship manager they can escalate to...?

 

[wchiri]

Rang them too, quoted that 6.2 point, she said oh yeah good point. Escalating with management. We'll see what happens

 

[daveozsydney]

They can say that but I intend to follow up with the Execs who head up the relevant departments directly depending on the outcome from my email (which I suspect will be denial and quoting paragraph 3 of 6.2 given what others here have reported)

 

[daveozsydney]

good info there plutonus...

 

[daveozsydney]

Keith from pointhacks posted an article today too. Hopefully it will go out in his email blast to subscribers too...

 

[Colin 2905]

So that's roughly 0.75 PPD as mentioned above. Is there any Visa/MC that is better than this?

For direct earn to Velocity there's a couple of Virgin Money Visa cards.....

The Flyer (which I currently have) yields 1 ppd, but only on the first $1500 per month. After $1500, it's only 0.5 ppd. Guess where the first $1500 of my monthly non-Amex spend is going for the time being. At any given time there's usually a promo which can score you 20 ~ 25,000 bonus points, and no annual fee for the first year. Plenty of reports on AFF of getting the annual fee waived in subsequent years if calling up to cancel.

The High Flyer yields 1.25 ppd uncapped, but has an annual fee of $289 (often halved for the first year). I've crunched the numbers on my typical non-Amex spend, and it's not for me.

Looking at the cards listed on the Velocity site which have transfer options, most of them only yield 0.5 ppd. A few offer 0.625 ppd. To get 1 ppd, you'd need the ANZ Rewards Black card, which normally has a $375 annual fee (there's a promo which waives the first year, and throws some bonus points at you if you meet the spend requirement).

I've yet to look for KrisFlyer options, but I doubt it's going to look good.

 

[daveozsydney]

The scanned version I have archived agrees with yours @burmans

 

[Cruiser Elite]

My understanding of FOS complaints is that documented record of complaint and response is required to substantiate basis of complaint - but obviously not correct here.

 

[lmere12]

My understanding of FOS complaints is that documented record of complaint and response is required to substantiate basis of complaint - but obviously not correct here.

This from their website
Before we can consider the dispute, your financial services provider must be given an opportunity to resolve the dispute with you directly. In most cases, the financial services provider has up to 45 days to respond to your complaint.

 

[daveozsydney]

nice. I knew I should have used the word notwithstanding in mine....

 

[GalaxyNexus]

I guess by complaining and getting a response that cites the T&C "we don't have to notify you" counts as provider declined "the opportunity to resolve the dispute with you directly".

 

[kevrosmith]

I saw this thread and went to check the conversion rates for my new Suncorp Bank Platinum visa (...the credit card facility is actually provided by Citibank). And yep... reduced conversion rates. Earn rate is 1.25 pts per $, and old conversion rate was 2 reward pts = 1 Velocity point, so 0.625 Velocity pts per $. Now it is showing as 2.5 reward pts = 1 Velocity point, so reduced to 0.5 Velocity pts per $.

Interestingly, the original rates are shown in the original announcement when the Suncorp card became a partner card... https://www.velocityfrequentflyer.c...SuncorpRewardsjumpsonboardasaVelocityPartner/

And new rates: https://www.velocityfrequentflyer.com/content/Info/SuncorpBank/

 

[JohnJa]

And the Suncorp T&C's are the same!

6.2 We may vary these Terms and Conditions from time to time. We will notify you of a changein the following ways:
if we change the rate at which all points in the program are generally earned orconverted we will give you 90 days written notice of that change.
We will give you 30 days written notice of other changes to these Terms andConditions.
If we change the point value of individual goods or services in the program to reflectchanges in the price charged by our suppliers for those goods or services, or if aparticular Reward is unavailable we will notify you on our Rewards website at thetime you redeem your Reward.

 

[Eggsbenedict]

Not a lot of noise on their Facebook page. Can I suggest a mass of posting of complaints?

 

[theblank]

And the Suncorp T&C's are the same!/

Suncorp don't issue or manage credit cards, they are Citibank cards rebranded. So that is no surprise at all.

 

[theblank]

otherwise I'll probably stick with Westpac's 0.625ppd Altitude Black MasterCard

Why stick with a lower earn card?
Citibank signature is still 0.75ppd (velocity) which is higher than most. It's still the best Visa card in my pocket because of $0 annual fee.

 

[Deewhy]

Anyone got a response from them yet? I've just lodged an enquiry via email.

...what's the best 1:1 earning option for Velocity now??