Yahoo Finance Loyal Aussies ditch popular credit card over new $8 fee: 'Not happy'
Latitude's credit card has been popular with overseas travellers, but a new fee has caused some to reconsider.
A credit card hailed by Aussie travellers has introduced an $8 per month fee and it's caused some customers to cancel immediately. The 28 Degrees Global Platinum Mastercard Credit Card from Latitude revealed the new fee would be brought in mid-September.
The company said the charge is common in the credit card industry and allows Latitude to "continue offering the features and benefits" for customer accounts. But the move has been the final straw for some frustrated customers.
"This makes me sad. I got the card way back in 2008 as my 'travel' credit card and it was a closely guarded secret among the backpacking community: no fees, free overseas transactions, and free ATM withdrawals anywhere in the world with no cash advance charges," said one customer.
"That card took me through Africa, Europe, the UK, the US, Asia and everywhere else."
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When asked by Yahoo Finance about the changes and the backlash it has sparked, Latitude's Matt Abbott pointed to the benefits that customers can still enjoy.
Aussies are furious about the change
Customers venting their frustration with the new fee said the email advising them of the fee update was enough for them to abandon their accounts "immediately".
"I'm going to have to cancel mine, but I'm not happy," wrote one.
"I've had this card since like 2012, used to be insanely good that you could load it up with money and withdraw cash overseas with no fee. They killed that many years ago, was still useful as an overseas payment card," said another.
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A third added: "Damn thanks for the heads up. Haven’t received the email yet but will def [sic] be cancelling. It offers zero perks."
"I've had a Lattitude card for years (sits with a zero balance more often than not) and the minute I got the email about the fee I canned the card," a fourth commented.
No international transaction fees were a huge draw card for many customers who used the card overseas.
Other perks included free global mobile data roaming, a complimentary Flight Delay Pass that offered free food and Wi-Fi if your plane was more than two hours late, and access to Mastercard Travel Rewards.
Other changes happening to the credit card
In addition to the $8 fee, Latitude announced it would be increasing the interest rate on purchases to 27.99 per cent per year.
In an effort to appease customers, the company said it would provide a $10 gift card if you spent more than $1,000 a month using the 28 Degrees card.
Customers will also get complimentary Purchase Protection Insurance and E-Commerce Protection Insurance, for up to $1,500 each.
Abbott told Yahoo Finance a new rewards program would be rolled out.
He said customers can also benefit from credit back offers, discounts and deals on big brands, along with free additional cardholders.
The $8 monthly fee will be part of a customer's closing balance and if they fail to pay it then a late fee will be charged and their account could go into arrears and in default.
The charge will kick in on September 17.
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