Nationwide defends £20 credit card promotion
Yesterday we reported on a recent promotion by Nationwide, encouraging customers to blow a grand in a month on their credit card, in return for a £20 credit which Nationwide had already stuck in their account.
This is exactly the sort of activity that isn't needed from banks right now, and we said as much; it felt like an exercise to generate lapsed payments among customers. Nationwide don't quite see it like that, obviously. We asked a spokesperson for a comment on the promotion, and they've replied as follows:
We recently ran a promotion for selected existing customers to encourage them to use their Nationwide credit card as their main account. We credited their accounts with £20; to keep the £20, they had to spend at least £1,000 on new purchases in the UK between two dates as confirmed in their offer letter. Otherwise, the £20 will be debited at a later date.This promotion was about encouraging existing customers to use our account as their main account and is similar to cash-back rewards that many card providers offer. For example, £20 reward on £1,000 spending is equivalent to 2% cash-back. All customers selected for this promotion had the required available credit of £1,000 within their existing credit limit and we did not extend any credit limits.
We regularly review and introduce new promotions, so it’s not possible to say at this time whether or not similar campaigns will be run in the future.
It's not really similar to cash-back promotions though, is it? Unless those credit cards also goad you into spending a minimum of a grand in 30 days to receive the cashback. Which they don't.
TOPICS: Credit Cards