Credit card issuer Creation blocks Curve and cancels certain customer cards
No more signs of aggression between the credit card industry and fintech Curve.
Image source: curve.
Hundreds of credit card customers have been notified of their card closure after connecting them to the all-your-cards-in-one fintech curve.
The approach of Creation Finance, which issues credit cards for the IHG and Marriott hotel chains, is apparently linked to the practice of “cash recycling”.
Essentially, people used their credit cards, through Curve’s debit card, to pay into savings accounts and earn points in the process, and then used their savings accounts to pay off any credit card balances. keeping their points.
Customers concerned flooded Curve community forum and reported that Creation customer service has said at least 1,800 cardholders are affected.
A spokesperson for Creation did not confirm the figure, but said AltFi that: “From time to time, we may close individual accounts in accordance with our rights under the credit card terms and conditions. “
In what could be a much more substantial move, Creation has now also blocked all Curve-related transactions on all credit cards it issues “while we undertake a link review.”
“As a responsible lender, it is important that we understand how the Curve platform is used and any impact that may have on the card issued by Creation and the normal consumer protection provided by consumer credit law. “
Once the review is complete, Creation says it will notify customers whether it has decided to revert Curve transactions or not.
On Twitter, Curve wrote to affected customers that “we are on the case and are looking to find a solution to this issue as soon as possible.”
Curve has not yet responded to AltFi request for comment.
Creation’s decisions echo those of American Express, with whom Curve spent three years negotiating for the credit card giant to allow its customers to use the service, without much success.
Curve has gained a loyal following by focusing on breaking traditions when it comes to debit and credit card payments, such as its Go Back In Time feature which allows customers to retroactively change the card they made their purchases on.
A similar decision was made when Curve enabled support for Samsung Pay, which means customers of banks that do not support Samsung Pay can bypass the block through Curve.
This behavior hasn’t always helped Curve gain fans among the industry, apparently now including Creation Finance executives.