Double Mint offer exposed

Mint has been adverstising widely

A new credit card seems to offer customers a good deal, but who is really making a mint out of it? Money Box investigated.

Mint is the new brand name for the Royal Bank of Scotland Advanta credit card and its current high profile TV, internet and press advertising says customers will pay no interest until October, and then 10.9% APR after that.

But people receiving a special mail shot inviting them to apply for a Mint card could end up paying much more in interest. Some will pay 16.9%, rather than 10.9%.

This is simply confusion marketing, dangerous, and will leave customers worse off Financial journalist Martin Lewis

Financial journalist Martin Lewis was horrified to discover this when the Mint offer arrived on his doormat. He told the programme of his dismay:

"They are giving people a worse offer by direct mail, when they are spending huge amounts of money advertising their standard offer.

"This is simply confusion marketing, dangerous, and will leave customers worse off."

'Price trial'

When Money Box approached Mint to ask it to explain the disparity, the programme was told that nobody from the company was available for interview.

But in a statement, the company confirmed that some people getting the Mint leaflet will find themselves paying up to 16.9% if they apply for the card through the post.

When you get a direct mailing through the post, sometimes they are better, sometimes they are worse, don't ever assume it is the same offer Financial journalist Martin Lewis

However, it said that only a small group of people are being test-marketed in what it describes as a 'price trial' for the card.

Mint's spokesperson also said some of the leaflets offer people a lower than 16.9% rate.

Money Box discovered that some people are indeed being offered 13.9% on their mail shots.

Martin Lewis says the Mint card can offer a better deal than many of its rivals, but anyone thinking of switching should apply carefully. He said:

"When you get a direct mailing through the post, sometimes they are better, sometimes they are worse, don't ever assume it is the same offer.

"If you want a Mint card, call them up or go on the internet. This 16.9% is simply charging consumers for the brand because people will see this and think they are getting a better deal.

"This is just completely ill-advised... behaviour and I am very disappointed in them."

Meanwhile, some Money Box listeners who have held an RBS Advanta card, which has been converted into the new Mint brand, are also angry.

They have spotted that they are also paying more interest than new Mint customers. Mint will usually offer existing customers a better deal but customers must call to negotiate.

The number to call is: 08457 070 070

BBC Radio 4's Money Box was broadcast on Saturday, 24 January, 2004 at 1204 GMT.

The programme will be repeated on Sunday, 25 January, 2004 at 2102 GMT.