GE Money: Ditching me before I ditch them
After all the hassle recently with GE Money, my gut reaction was to close my credit card with them straight away. In the end I decided to give their complaints department the benefit of the doubt and see what happened before taking a final decision. As it happens, they’ve decided to ditch me before I ditch them.
Actually it’s not just me – they’re getting rid of all card holders with a GE Money EveryDay card.
The deal on the card is pretty good – one reason why I went with it in the first place. Basically you get 3% cashback on purchases in supermarkets and on petrol – hence the EveryDay name. You get a financial reward for buying every day things. True for other items you only get a 0.5% cashback, but that’s fine because my Egg Money card gives me 1% on all purchases.
No doubt the problem was that when you have an offer like that, you attract a certain type of customer. People like me.
When it comes to credit cards, I’m a firm believer of “no give, all take”. I take the best offers I can find, use them and make sure I don’t give anything back. I’m the type of customer credit card companies hate. I don’t pay interest, I don’t pay late fees and I don’t spend ridiculous amounts of money.
More over I make sure I’m always getting the best deal – hence why I usually end up with three credit cards in my wallet at any one time (my current third is a rarely used American Express Nectar card which I got when cashback offers were a bit thin on the ground as you get 1% rewards – in the form of Nectar points – at all Nectar retailers, and 0.5% elsewhere)
And that’s where the credit card companies fail. To attract new customers they need big offers – like flashy cashback rates. But flashy cashback rates attract sensible customers. And sensible customers don’t make profits. Time after time I’ve had cashback cards which last a while, then the rates begin to get cut before finally being removed completely, or even closed down with customers moved to a standard card.
Notably in the case of GE Money’s EveryDay card closure, they haven’t even done that. From 14th November this year, the card will be dead and that’s that. They’re not even bothering to try and move the customer base to a new card with the same company.
The letter I received said they were giving us plenty of time to find a new card (three months is actually a pretty good amount of time), but barely bothered to tell me that it could be with them. The obvious conclusion is that the customers they worked on getting, just aren’t that good for their business. The fact that for about six months they accidentally payed 3% cashback on all purchases, rather than just petrol and food might not have helped either (sadly I hadn’t used my card on anything else, so didn’t get to enjoy this particular bonanza!)
It was slightly ironic that on the same day I received this news, I also received a letter proclaiming the company were looking into my recent complaint. I should hear something back within four weeks. One can’t help but wonder how apologetic a company will be towards a customer they’ve already decided to ditch. For me, their response now will be a true test of their customer service.