Interesting one here I have a Tandem 0% credit card that's fee based £5.99 per month.
I just received the following from Tandem
NOTICE OF VARIATION
Effective on 2nd November 2020 we will be changing your Tandem Membership. Your Tandem Cashback Credit Card is closing, and you will need to repay your balance in full by 3rd February 2021.
You will no longer pay your £5.99 monthly fee and your Tandem savings account interest rate is being lowered from 1.25% AER1 to 0.50% AER1.
We’re writing to let you know that we have made the difficult decision to close our Tandem Cashback Credit Card and change the Tandem Membership service. As a result, your Tandem Membership will change on 2nd November 2020 as follows:
Tandem Cashback Credit Card
Your card will be blocked for spending. Once your balance has been repaid in full, your account will be closed.
You have until 3rd February 2021 to repay your balance in full.
The interest rate on your card will increase from 0% APR2 to Representative 6.9% APR2. If you want to opt out of this rate change, please contact us by 2nd November 2020.
We encourage you to repay your balance before these changes take effect on 2nd November 2020 unless this conflicts with a pre-existing payment plan you have with us.
In case you need help with repaying your balance, please contact us and we can discuss your options.
Your savings interest rate will be lowered from 1.25% AER1 to 0.50% AER1.
If you would like to close your account, please contact us and we can process this for you.
Your final £5.99 monthly fee will be charged on your October 2020 statement. Please continue reading to understand the details of what’s been outlined above. You can also view the full Notice of Variation here.
Your Tandem Cashback Credit Card details
This email serves as 60-days' Notice of Variation in accordance with clause 14 of your agreement. You can view your amended agreement here.
You can continue to use your card as normal until 1st November 2020. From 2nd November 2020, you will no longer be able to spend or obtain cash advances on your card and your account will be closed once your balance has been repaid in full. This notice will not change any pre-existing payment plan you have with us. We encourage you to continue to follow your existing plan when repaying your outstanding balance.
If you would like to close your account before 2nd November 2020, you can do so by repaying you balance in full and then contacting us to request the closure. Please note, the interest rate on your Tandem savings account will remain at 1.25% AER1 until 2nd November 2020 even if you close your account early.
The interest rate on your card is changing from 0% APR2 to 6.9% APR2
On 2nd November 2020 we are increasing your interest rate to Representative 6.9% APR2 for all remaining balances. This APR2 will appear on your November 2020 statement.
If you would like to opt out of this rate change please contact us through in-app chat or on 020 3370 0970 by 2nd November 2020.
We encourage you to repay your balance and close your account before this takes effect. If this is something you are able to do, contact us once your balance has been repaid and we will process the closure.
Purchase interest rate
Assumed Credit Limit
If you choose to opt out of this increase, you will keep your 0% APR2 but you must repay your balance by 3rd February 2021. On that day we will reassess your remaining balance and may consider reintroducing an APR2 that could cost you more.
If you are concerned about the amount of time you have to repay your balance, please contact us so we can talk through your options.
Alternatively, you could consider transferring your Cashback Credit Card account balance to another external lender. Some lenders offer low balance transfer rates, but you’d have to find what fits for your circumstances. In the coming weeks we will share more information with you on these options.
Your Tandem Account interest rate is reducing from 1.25% AER1 to 0.50% AER1
You will keep your current 1.25% AER1 interest rate until 1st November 2020. On 2nd November 2020 your interest rate will be lowered to 0.50% AER1, which is our current instant access savings account interest rate. This also applies to customers who were on a promotional rate prior to signing up to Tandem Membership3.
New Rate as of 2nd Nov 2020
1.25% AER1 / 1.24% gross (variable)
0.5% AER1 / 0.5% gross (variable)
If you would like to close your Tandem Account, please give us a call on 020 3370 0970 and we will process this for you.
Thank you for your support
We would like to thank you for being a valued member of our community by choosing the Cashback Credit Card and joining the Tandem Membership when it launched back in March.
One thing about being a start-up is that we can learn quickly, and we aren’t afraid to see when a change needs to be made. We didn’t take this decision lightly, though. We tried hard to make our credit cards work for you and us but we didn't succeed. We will be updating our website next week with more information on this.
As a loyal member of our community from the start, we want to thank you for your support and we hope our new savings services will bring you value.
Are you in need of some support? If any of the following applies to you, please give us a call on 020 3370 0970 or send them a chat in-app and we will be happy to assist you.
You are experiencing financial difficulty or feel you need some support due to the repayment timeline outlined in this Notice of Variation; or
You are having trouble understanding this Notice of Variation or require this notice in a different format
HELP AND SUPPORT
We're here to help. Our customer support team is available 8am - 6pm, 7 days a week.
020 3370 0970
Frequently Asked Questions
1 AER stands for Annual Equivalent Rate and explains what the interest rate would be if interest was paid and compounded once a year. Gross is the interest rate before tax is deducted.
2 APR is the Annual Percentage Rate and is the rate of the total charge for credit, expressed as an annual percentage of the total amount of credit.
3 If you were on the Tandem Account bonus rate of 1.00% AER prior to joining the Tandem Membership, please be advised that this rate expires on 1st October 2020 as set out in the promotion terms. All accounts with that interest rate will be reduced to 0.50% AER on 31st October 2020.
Tandem Bank Limited is a company registered in England and Wales (company registration number 00955491) with its registered office address at 40 Bernard Street, London, WC1N 1LE. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 204479. © 2020 Tandem Bank
Now this goes against their previous promise
We’ve got big news! Today we’re proud to introduce the Tandem Membership – an exclusive plan available to existing Tandem Cashback Credit Card customers. This membership unlocks a suite of exciting new benefits. Ready to hear more?
Before we get to the exciting bit, it’s important to know that there will be changes to your existing Tandem Cashback Credit Card. Keep reading to understand what this means for you.
0% Interest Charges: We’ll drop the standard interest rate on your card to 0% for all purchases and cash withdrawals.* This means no interest charges on your balance – ever
Market-Leading Savings Rate: Accelerate your savings with a 1.50% AER on a Tandem Account. Apply for one now in-app
Free Spending Abroad: You asked; we listened. No more interest on cash withdrawals abroad. Plus, continue to enjoy your holiday spending without fees
Worldwide Cashback: Did we mention you'll continue to earn 0.5% cashback on all purchases over £1 worldwide? Keep saving every time you spend
The APR takes into account the membership fee as a cost of credit. Your actual purchase and cash interest rates will be 0%.
For a monthly fee of £5.99, you’ll gain access to all these benefits. If you choose to become a member, your existing credit agreement will change starting on 9th March 2020. To view the new credit agreement, click here.
Become a Member
If you choose not to become a member, you can use your card as normal until 9th March 2020. After this date, you will no longer be able to use your card and your credit agreement will end when your balance is repaid in full.** For more information and to review the membership documents, check out our FAQs.
*For cash withdrawals in the UK, a fee of 2.50% (minimum £2.50) applies.
**Your agreement will end when you repay all outstanding amounts, any interest and any fees. If you would like to speak to an agent, contact us on 0203 370 0970 and press 2 and we’ll walk you through your options. Alternatively, you can contact us in-app.
Tandem Bank Limited is a company registered in England and Wales (company registration number 00955491) with its registered office address at 40 Bernard Street, London, WC1N 1LE. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 204479. © 2020
Notice the ever bit.