Credit card switch 'results in reward loss'

People wishing to change credit card deals may want to do so carefully following the case of one Adelaide man.

Those looking to switch credit cards may wish to compare accounts with caution, it has been suggested.

Speaking to AdelaideNow, Robert Gareb reveals that upon changing Westpac cards from the Altitude Visa to the Mastercard Gold in 2007 he was able to achieve a significant reduction in charges.

Indeed, he was previously paying an annual fee of $75, although the switch now means he does not pay any such charge.

However, Mr Gareb states that when telephoning to make the change he asked if there would be any negatives to doing so.

And while he was told that there would not be, he reveals that he has lost the 55,000 frequent flyer points accrued on the Altitude Visa as the Mastercard does not offer such a loyalty programme.

Now, Mr Gareb is to take his complaint with the Financial Ombudsman Service (FOS).

The publication also reveals that the FOS claims a bank "does not have to advise a customer as to whether a particular product or service is, in all circumstances, in the customer's interests".

However, if a customer asks a specific question than the provider is obliged to give "an accurate response".

Earlier this week, the Commonwealth Bank revealed it has forged a new partnership with American Express where both new and existing customers of the Commonwealth Awards credit card will be able to accrue reward points at a faster rate than was previously available.

Written by Nate Sawyer