Saga card payout surprise

HUNDREDS of customers of Saga, a company specialising in the over-50s market, have received an unexpected windfall following its admission that it badly handled the axeing of its popular platinum credit card last year.

Saga has sent cheques to customers who cleared their debts in response to its out-ofthe-blue letter in January 2019, stating the card was being withdrawn at the end of March.

The letter told customers to pay off their balance within 60 days or transfer it to a new provider.

Failure to do this, it said, could result in the debt being transferred to a ‘third party’.

Customers complained of its threatening tone and of being bounced out of the card, managed by Allied Irish Banks, with little notice. The card was popular because of its low interest rate (11.9 per cent) and the fact no currency conversion fees were levied when used abroad.

In the letter accompanying the compensation payments, Saga says: ‘Looking back, the letter we sent to you in January 2019, telling you we were closing your credit card, may have caused you to think that you had to pay off your credit card balance immediately.

That was not our intention and we are sorry for this.’

The compensation is equivalent to 8 per cent interest on the outstanding balance at the time the original letter was sent.

Louise Zucchi, from Beccles in Suffolk, got a cheque for just over £245. The 57-year-old communications consultant said: ‘It was unexpected, although I did think when I received the original letter, its tone was intimidatory. Saga has done the right thing.’

Jeff Bromage, managing director of Saga’s personal finance arm, said: ‘Clarity of communications is very important to us. It is clear the letter informing customers that AIB was closing the card fell short of these standards.’