ABSA woes for pensioner

Madam – I have just been informed of the revised costs of my credit card accounts for 2016.

I am a 73-year-old pensioner who has been an ABSA customer since 1969 (46 years)!

I am appalled, no, disgusted, with the increase from an already excessive monthly charge of R29 to R42 – an increase of 45 per cent!

Also, with a credit balance of more than R3 000, I earn monthly interest of the princely sum of 60 cents.

The cost of my two credit cards is now equal to my monthly expenses on bread, milk, butter, cheeses and eggs!

With ABSA posting record profits, what is the rationale behind the exorbitant increases? It makes no sense.

You will understand that I am now making enquiries as to where I can move my accounts, where I will not be fleeced.

I remain,

Yours not so sincerely,

B.F.D.PHILPOTT

Response from Willie van Zyl, Head of Card Issuing at Absa Card, Absa Retail and Business Banking:

We have been in contact Mr Philpott and we are happy to inform you that we successfully resolved his query.

Customers aged 55 and over have access to a range of offers where they can receive free day-to-day banking in exchange for maintaining their investments with us.

Prosperity current account package customers who maintain R15 000 on a fixed deposit or R20 000 in one of our demand deposit accounts receive their day-to-day banking free of charge up to a limit of R500 per month. Additionally these customers also qualify for a premium in their fixed deposit interest rate.

With the increase in the acceptance of debit cards by more merchants, customers also have the choice to use their debit card for purchases that have traditionally been in the domain of credit cards. Customers now also have the ability to personalise their daily card spend limits to suit their needs more appropriately.

Good news for our Gold Value Bundle customers is that they now receive a full rebate on their Credit Card Facility Fee of R25. Secondary Credit Cards continue to attract no Monthly Fees and customers who subscribe to our Rewards Programme can get up to 1 per cent of their card spend back in cash.

As always, we encourage our customers to regularly review their personal financial circumstances to ensure they have the most appropriate products and pricing arrangements for their needs.

We have a highly trained sales force who can help our customers choose the best products and services for their needs.