A credit card highly praised by Australian travellers has introduced an $8-a-month fee, prompting some customers to cancel immediately. Latitude’s 28 Degrees Global Platinum Mastercard Credit Card announced that the new fee will be introduced in mid-September.
The company said the fee is standard in the credit card industry and allows Latitude to continue offering “the features and benefits” for customer accounts. But for some frustrated customers, the move was the straw that broke the camel’s back.
“This makes me sad. I got the card back in 2008 as my ‘travel’ credit card and it was a closely guarded secret in the backpacker community: no fees, free foreign transactions and free ATM withdrawals anywhere in the world with no cash advance fees,” said one customer.
“This map has taken me through Africa, Europe, the UK, the US, Asia and everywhere else.”
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In response to the question from Yahoo Finance Speaking about the changes and the backlash they have sparked, Matt Abbott of Latitude highlighted the benefits that customers can continue to enjoy.
Australians are angry about the change
Customers who expressed frustration over the new fee said the email notifying them of the fee update was enough for them to cancel their accounts “immediately.”
“I’m going to have to quit mine, but I’m not happy,” wrote one.
“I’ve had this card since 2012. It was so amazingly good that you could load it with money and withdraw cash abroad without any fees. That was abolished many years ago, it was still useful as a payment card for abroad,” said another.
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A third added: “Damn thanks for pointing that out. Haven’t received the email yet but will definitely cancel. It doesn’t offer any perks.”
“I had a Lattitude card for years (which mostly has a zero balance) and when I got the email about the fee, I canceled the card,” commented a fourth.
For many customers who used the card abroad, the lack of international transaction fees was a big incentive.
Other perks included free worldwide mobile data roaming, a free Flight Delay Pass with free food and Wi-Fi if your plane was delayed more than two hours, and access to Mastercard Travel Rewards.
Further changes to the credit card
In addition to the $8 fee, Latitude announced that it would increase the interest rate on purchases to 27.99 percent per year.
To keep customers happy, the company announced that it would issue them a $10 gift card if they spend more than $1,000 per month with the 28 Degrees card.
Customers also receive free purchase protection insurance and e-commerce protection insurance, each valued up to $1,500.
Abbott said Yahoo Finance a new rewards program would be introduced.
He said customers can also benefit from credits, discounts and special offers from major brands, as well as free additional cardholders.
The $8 monthly fee will be included in the customer’s final balance. Failure to pay will result in a late fee and may result in the customer being in arrears and default.
The indictment is due on September 17.
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