Creation cancelling credit cards which have been used with a Curve Card

Links on Head for Points may pay us an affiliate commission. A list of partners is here.

Creation Financial Services, issuers of the IHG Rewards and (closed to new customers) Marriott Visa credit cards, made a very aggressive move on Friday in its dispute with Curve Card.

It appears that the majority of credit cards which had been used with a Curve Card are being closed.

One call centre agent said that 1,800 cardholders were impacted. We cannot confirm this number.

Creation closing IHG and Marriott credit cards used by Curve Card holders

The closure letter states that cards are being closed on 3rd December.

Based on reader discussions with the call centre, but not confirmed in writing by Creation:

annual free night vouchers on the IHG Rewards Premium credit card will still be desposited if the cardholder spends £10,000 before their card is closed

there will NOT be a pro-rata refund of the £99 annual fee on the IHG Rewards Premium credit card – although you would be free to dispute this with the Ombudsman

If you cannot trigger your free night voucher by 3rd December but would otherwise, you arguably have a case for a full refund of your IHG Rewards Premium £99 fee for the current year.

Why is Creation banning Curve Card holders?

It isn’t entirely clear what is driving this, although I was told by an independent industry consultant that it was being pushed by National Savings.

Curve Card, for those who don’t have one, is a debit card which allows you to recharge transactions to a linked credit card. You can learn more about Curve Card in this article.

This meant – most specifically – you could deposit money into National Savings and have it charged to a miles or points earning credit card as a purchase. Most Curve Card holders had a £9,000 daily limit albeit capped at £1.8 million per year.

Whilst Curve Card had always had blocks in place for payments to banks, there were certain grey areas such as National Savings, HMRC and various investment firms such as Hargreaves Lansdown.

Creation had initially sent out text message to cardholders a few weeks ago saying that its cards could no longer be used with Curve Card. I was told at that time that mass account closures would follow, and here we are.

One problem is that the ban is catching many people who used Curve Card purely for Apple Pay functionality. It was the only way to add your Creation card to Apple Pay.

For clarity …. the free IHG Rewards credit card is still open to new applicants. Creation is not pulling out of the UK and is only closing these 1,800 (TBC) accounts.

Time to pick up 30,000 Virgin Points?

If you are now looking for a new Visa or Mastercard, don’t forget the excellent 30,000 Virgin Points bonus currently offered on the Virgin Atlantic Reward+ credit card which has a few days left to run. Our article is here and you can apply here.

Want to earn more points from credit cards? – December 2021 update

If you are looking to apply for a new credit or charge card, here are our November 2021 recommendations based on the current sign-up bonus.

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the top current deals:

British Airways BA Amex American Express card

British Airways American Express

5,000 Avios for signing up, no annual fee and an Economy 2-4-1 voucher for spending ….. Read our full review

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review

The Platinum Card from American Express

30,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers.

American Express Business Gold

20,000 points sign-up bonus and free for a year Read our full review

American Express Business Platinum

40,000 points sign-up bonus and a long list of travel benefits Read our full review

British Airways Accelerating Business American Express

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

Capital On Tap Business Rewards Visa

The most generous Avios Visa or Mastercard for a limited company Read our full review

For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending:

Barclaycard Select Cashback Credit Card

1% cashback and no annual fee Read our full review

Category

IHG Rewards

This article is closed to new posts. Discussion continues in the HfP Forums.

lee says:

1 Oct1 October 14:57

I guarantee al the accounts cancelled will be people also who pay there bills in full not paying interest so they they are making a small fee only .

I paid mine in full each time paying no interest
- Tommo says:
  
  1 Oct1 October 22:47
  
  Not the case.
  
  I got into a pickle and am running a balance + a balance transfer.
  
  Cancelled just the same.
Dan Loves Christmas says:

1 Oct1 October 14:58

Bye Bye Solihull. Bit cheeky not to refund the fee, the whole episode suggests they have been asleep at the wheel for sometime (or the large scale MS activity that likely prompted this, accelerated recently as people suspected the end was nigh).

I never realised paying HMRC was considered ‘grey’ – I thought that was one of the advertised benefits of curve?
- Qrfan says:
  
  1 Oct1 October 15:01
  
  It’s not grey, it’s part of the curve fronted restrictions. I don’t see that as grey if you pay the fee (either metal or 1.5%).
- Rui N. says:
  
  1 Oct1 October 15:02
  
  NS&I top-ups are also one of the advertised benefits of Curve, along with paying a credit card with another credit card – not that you need the latter for Creation, as you can do it directly!
- BLT says:
  
  1 Oct1 October 15:11
  
  I never understood HMRC payments being classed as dodgy. HMRC use to accept credit cards prior to the ban on charging for CC payments. No credit card company had an issue with these payments, but now they do?? it’s completely different to NS&I etc who have never allowed CC payments for good reason.
Tw33ty says:

1 Oct1 October 15:01

Just been on the phone with creation, they say as per term 14 or whatever, they don’t need to give a reason for closing a card.
I’m getting both mine closed, one has never been used via curve, the black one used for curve via Apple Pay with no NS&I ever done on it.
Yearly fee not being refunded even though only took four days ago.
Put in a complaint as they’ve took money for the provision of goods or services that they are failing to provide.
Seems silly not to refund as they will be getting charged more per complaint than from giving refund.

A work colleague has also received the letter of cancellation of his white card, he’s only used it for stays at ihg with work and never heard of curve.

Seems it’s maybe an exit strategy from the uk
- John says:
  
  1 Oct1 October 15:07
  
  Seems this 1800 closures thing is nonsense then
- Genghis says:
  
  1 Oct1 October 15:27
  
  Seems a reason must be given:
  “Where a regulated open-end consumer credit agreement, other than an excluded agreement, provides for termination or suspension by the creditor of the debtor’s right to draw on credit—
  (a)to terminate or suspend the right to draw on credit the creditor must serve a notice on the debtor before the termination or suspension or, if that is not practicable, immediately afterwards,
  (b)the notice must give reasons for the termination or suspension, and
  (c)the reasons must be objectively justified.”
  https://www.legislation.gov.uk/ukpga/1974/39/section/98A
  - JDB says:
    
    1 Oct1 October 15:46
    
    Termination is covered in s3, not s4 (which is the one you are citing).
    - Genghis says:
      
      1 Oct1 October 16:12
      
      I’m certainly no expert on the CCA. Link? Looks to me like I wasn’t citing S4, but 98? Confused.
      - JDB says:
        
        1 Oct1 October 16:34
        
        @Genghis I was citing the paragraph before the one you cited. I was referring to S98A(3) which is the one that applies here, not (4). You will find this confirmed in a number of FOS decisions e.g DRN-1902490. (4) relates the ability to draw credit which Creation hasn’t done.
      - Genghis says:
        
        1 Oct1 October 16:38
        
        @JDB thanks.
@mkcol says:

1 Oct1 October 15:03

Husband has the paid for card & never did any MS yet did add it to his Curve card.
Quite a bit rubbish of them.
I’ve got the free & paid for, and will be pushing for compo of the fee.
Tom says:

1 Oct1 October 15:13

Email from Creation:

“Over the last year, we’ve seen a lot of changes in the way our customers get in touch, changing not only when they call, but what they call about. That’s why we have introduced new services to make it quicker and easier for you to manage your account.”

You mean the account you’ve decided to close? Bunch of absolute jokers.
Graham Walsh says:

1 Oct1 October 15:14

Could we do a charge back for the fee?
- stevenhp1987 says:
  
  1 Oct1 October 15:18
  
  No. It’s not an actual Mastercard transaction.
  - Graham Walsh says:
    
    1 Oct1 October 15:24
    
    Darn, there goes that idea.
Paul says:

1 Oct1 October 15:19

How ironic, letter today saying they are closing my account with no explanation, then I’ve just received this mail from Creation:

Over the last year, we’ve seen a lot of changes in the way our customers get in touch, changing not only when they call, but what they call about. That’s why we have introduced new services to make it quicker and easier for you to manage your account.

Updating the way you can make payments

From 04 October 2021, when making a payment by telephone, you will need to use the automated menu, which means you won’t have to wait for the next available agent.

Absolutely inept! I’ve never know a Card company act like a bunch of cowboys!!
mark2 says:

1 Oct1 October 15:21

My wife is due a free night voucher on 21st November 21 and to pay the annual fee, a few days before the card is cancelled.
Interesting times!
- Richard says:
  
  1 Oct1 October 15:37
  
  Don’t use the card after 12/11. They should refund the annual fee.