Citibank Taking over Coles Credit Card Services

Just received an email stating that Coles is selling their Credit Card services to Citibank. Seems rewards with Flybuys will continue with some changes.

What are peoples thoughts and what changes can people make from the new T's & C's?

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Coles Financial Services
Coles Financial Services

Comments

  • +6 votes

    they are introducing a transaction fee on international credit card transactions

    This got me worried, as that's the main reason I'm holding onto the Coles Rewards MasterCard (in addition to earning Flybuys points on the (very few) transactions that I can't use my AmEx). However, I did a bit of digging:

    they are introducing a transaction fee on international credit card transactions

    This is not true. See the top of Page 3, which states:

    The International Transaction Fee for Retail Purchases is waived on the Coles Rewards
    Mastercard. Any Cash Advance transaction using your Coles Rewards Mastercard will
    continue to incur an International Transaction Fee.

    So if you have the Rewards Card rather than the No Annual Fee Card (I'm guessing you have the Rewards which is why you're referring to an International Transaction Fee), then there is no change in respect to this.

    •  

      Thanks for the link.

      Interesting is this condition as RonnKnee below says

      Your Payment Due Date will also change. Currently it is the same day in every month. It will change to become 25 days after your last statement date (or the next Business Day if it would otherwise not be on a Business Day). This change means the Payment Due Date will no longer fall on the same date in each month.

      Thats going to mess up those with automatic payments as the date will change, also those with diary reminders

      • +1 vote

        You're right, I have mine being paid on the 27th of every month, and it's ingrained in my brain. Whenever I look at the date and it's the 27th, first thing I think of is to pay off the balance on the Coles card, as it's due that day.
        Now that pattern will be stuffed!

  • +1 vote

    yeah sorry just found that out myself. Will alter OP. Sorry for the fright :)

  •  

    at the moment coles and 28 degrees are belong to the same owner i think, their website are very similar.
    so maybe 28 degrees will be sold to citi?

    •  

      Yes, they were owned by GE Finance who got bought by Latitude Financial Services. LFS recently sold Myer credit cards to Macquarie Bank and must be selling off others too.

      • +2 votes

        I think you are very wrong. Latitude never sold the Myer card.

        Myer called for tenders or something like that and Macquarie won the bid.

        Latitude transferred all existing Myer card holders over to their own Infinity card, even uses same old numbers that existed on the Myer Card. Macquarie had to issue new cards with new numbers.

        •  

          GE had Myer and GE were acquired by LFS, so technically they had Myer, right?

          Yes, they kept the book, but the Myer card went to Macquarie.

        •  

          @John Kimble: Yes, That part is correct

  •  

    Citi Wok

  • +3 votes

    This change means the Payment Due Date will no longer fall on the same date in each month.

    Wow, that's very annoying. Can't predict the payment due date anymore.

  • +1 vote

    I hope this doesn't change the rules regarding the price protection feature.

    I love having the ability to claim back money on an eligible item that drops in price within 24 months of the date of purchase.

    • +1 vote

      If you hold a Consumer Credit Insurance Policy that relates to your Account issued by Hallmark General Insurance Company Ltd ABN 82 008 477 647 and Hallmark Life Insurance Company Ltd ABN 87 007 446 884, all policy terms and conditions will remain the same and will apply to your Account as provided by Citigroup Pty Limited. From the Start Date, please call 1300 306 397 to make claims or for any other matters relating to your policy.

      •  

        TLDR : Yes, it looks like we will still have price protection (for now?)

        Their statement (referring to @terlalu 's comments), also say that the terms,conditions,etc may be amended from time to time and that Citigroup does not guarantee the insurance.
        Source: https://financialservices.coles.com.au/~/media/financial-ser...

        Price Protection (and other benefits, such as lost Merchandise Protection) are provided by Hallmark General.
        Source: https://financialservices.coles.com.au/~/media/financial-ser...

        •  

          Hmm… I wouldn't be too sure just yet!

          From the Important Information page, in the section "until 04 March 2018", Account Cover Plus, which is an "an optional insurance that is available to Coles Mastercard account holders", is listed.

          But when you look at the next section, "from 05 March 2018", there is no optional insurance mentioned. There is only "Coles Platinum Mastercard – Complimentary Insurance Terms and Conditions". Account Cover Plus is gone, and I'm pretty sure they're not going to give complimentary 24-month price protection.

          :(

  •  

    If you have a zero fees Coles MasterCard, are any changes expected with this?

    •  

      Looks like you will charged 2.5% for international transactions.

  • +1 vote

    Samsung Pay incoming??

    •  

      I've been hoping for Android pay but I imagine if they do one they'll do all (28 degrees definitely does both Android and Samsung Pay)

      •  

        Android pay would be awesome. Edit: On second thought, my citibank credit card doesn't even have Android pay, so why would they bother doing it for this one.

  • +2 votes

    <sigh>

    Switched from a Citibank card to Coles last year after getting fed up with Citibank's hopeless customer service.

  •  

    Got the email today with the link to the details. One thing not clear is whether I have to contact them again, and when, to establish a new DD agreement. I guess I'll figure it out in the next month.

    •  

      I had a look for this too. Whilst it doesn't explicitly confirm that direct debits will be carried through to the new provider, it does list a number of ways that customers "agree" to reassignment of the account to Citibank under the Assignment and Novation Notice, e.g. make a purchase, cash withdrawal or make a payment, including a balance transfer or BPAY payment, on your account.

      It goes on to list another way of agreeing is to "establish a new direct debit arrangement (note that this does not include payments being made to your account under an already existing direct debit arrangement)". I read this as existing direct debit arrangements will be carried forward.

      •  

        Just got my first new format statement and looks like they made a DD after the takeover date so looks like you're right. However the statement says nothing about an automatic payment coming up unlike some other cards, so to be sure I've messaged them asking for confirmation.

      • +1 vote

        Customer service confirmed that my DD setup continues. However as there are only two DD options now, pay in full or minimum, people who were on the fixed amount repayment per statement will be migrated to minimum payment.

  •  

    I had a quick look through the documents, but could not see if the yearly fee on the rewards card is still $0 for Coles employees.

    •  

      Do they even mention what the annual fee will be? I know it was going up to $95 this year. But could see nothing to confirm is this is still the case.

      •  

        I saw in the Financial Table document that the annual fee won't change. Doesn't mention the team member no annual fee though.
        Hopefully your current $0 won't change.

    • +1 vote

      Got an update from head office: Team members will still have their annual fee waived, and you'll still be able to take advantage of free delivery on Coles Online orders over $100.

  •  

    Tons of exclusions

    “Eligible Transaction means any purchase excluding (but not limited to)
    Cash Advances, Balance Transfers, Special Promotions, BPAY payments,
    purchases of foreign currency and travellers cheques, transactions
    made in operating a business, payments to other Citi accounts, bank
    fees and charges such as interest and ATM charges, transactions made
    using flybuys Points and government related transactions. Government
    related transactions include transactions with government or semigovernment
    entities, or relating to services provided by or in connection
    with government (for example but not limited to transactions made
    at Australia Post, payments to the Australian Taxation Office, council
    rates, motor registries, tolls, parking stations and meters, fares on public
    transport, fines and court related costs).
    Please note that whether or not a transaction is an Eligible Transaction
    will be determined based on information provided either by the
    merchant or the relevant financial institution (including information
    about the type of business conducted by the merchant). This means
    that, for example, spend with certain merchants may be characterised
    as spend with a government related entity and therefore not an
    Eligible Transaction, even if that merchant is not in fact a government
    related entity.”

    •  

      Gotta love that last bit. Pretty much means they can get out of most things and have no need to justify why they are ineligible.

      Will be interesting to see how long they will take to rip this card apart and make it pretty much useless.

    •  

      I switched to Coles last year and pay all my bills on this credit card (car rego, council rates, etc) for the points. I wonder how accurate is their system at classifying these transactions. If these transactions are all ineligible, I will probably go back to my NAB card.

  •  

    This is so [email protected]#$, I bought a lot of stuff to claim back later with account cover plus and now I'm not going to be able to. Cancelling this card now

  •  

    I think it looks like you lose the ability to earn 3 points per dollar in the respective Coles stable retail stores for platinum holders? At least there's no mention of it.

    •  

      Good pick up. I'd missed that.

  •  

    I only use Coles card for the Account Cover Plus… if they cancel it, I will cancel card. Fingers crossed it remains!

    •  

      Same. I'd quit too.

      They must continue to provide the cover for the items previously purchased, but its annoying if it wont work for new purchases.

      •  

        The insurance service is provided by Latitude, unrelated to the credit service.

        I just got the updated version of pds for Account Cover sent to my address which is apparently the same as it was before, except for the 24 month price protection has been cut down to 12.

        •  

          Are you sure? I received one also and it was still 24 months and the PDS on the website still says 24 months.

        •  

          @Bramey: it was very quick read on my part, I might have confused the 12 month limit of claims with the 24 month price change. Don't quote me. lol.

          The most important part is, it seems insurance is still provided by Latitude.

        •  

          @dennis3107: I received it too, and yes the 12 months refers to the $2k annual claim limit.
          Hopefully nothing changes again!

        •  

          @dennis3107: The insurers are Hallmark Life Insurance Company Ltd. ABN 87 008 446 884 AFSL 243469 for Life Cover, including Critical Illness benefit and Accidental Death Cover, and Hallmark General Insurance Company Ltd. ABN 82 008 477 647 AFSL 243478 (Hallmark General) for Price Protection, Merchandise Protection, Stolen Card Cover, Disability Cover, Involuntary Unemployment Cover, Total and Permanent Disability benefit, Accidental Bodily Injury Cover and Extra Care Cover.

  •  

    Anybody having problems paying accounts?

    •  

      No but then I have a DD agreement.

    • +1 vote

      they have changed the account number which they have no access to the old account number.

      I got bite as when they change over they did not advise the new account number then I keep plying with the old account number and they said they did not receive it and keep charging me interest.

  •  

    Just wondering if anyone here might have a screenshot of the Coles Mastercard bonus 30000 flybuy points signup offer in December 2017.
    This is the link to the deal: https://www.ozbargain.com.au/node/348992

    A screenshot of the website or original email offer would be nice.

    I never ended up getting my bonus points for signing up in December.
    Mentioned this on a phone call to coles finance today but they aren't willing to help unless I show them evidence (e.g. proof of offer).

  •  

    Anyone know what the deal is with the billing cycles now? used to be the 25th of the month but my last one went to the 3rd of of the next month. Is there a set eom month date now or is it just based a number of days cycle? makes it hard to budget your credit cycle.

  •  

    They still haven't fixed the bloody website. Close to 2 months now.

    •  

      What's wrong with it? Works finw and app works fine for me?

      •  

        I haven't been on it for a couple of weeks now but it's a very ordinary website.

        Couldn't confirm if my direct debit was set up and layout was poor

      •  

        I can't make a payment or set up a direct debit.

        I refuse to setup bpay with my bank account.

        They suggested paying at the post office. And they would refund the transaction fee in flybuy points.

        Plenty of people can't download statements.

  •  

    Anyone been able to upgrade their premium card to the rewards card?
    Customer service wasn't able to tell me an answer couple weeks back, hopefully I can upgrade and still keep my ACP