Diners Reverses Cashback Cut After Failing to Notify Customers Properly
In June, a Diners Extra Home credit card customer discovered that her cashback accumulation rate had been reduced from 5% to 3% without any prior notification. The card, issued by Diners under Cal, offers cashback on household expenses including fuel, utilities, and retail stores. The customer noticed the change while reviewing her husband's credit card statement and claimed she received no SMS or other communication about the reduction. After the issue was reported by ynet, Diners acknowledged that some customers were not properly informed as required by law and temporarily restored the cashback rate to 5% until March 2027 for those affected.
Cal initially stated that it had notified customers nine months in advance through billing statements, but the customer said she found no such notice. Following the complaint, a customer service representative confirmed the cashback rate would be reinstated for those not notified, and the company updated the notification deadline on its website accordingly. The customer emphasized the card's value due to its fuel-related benefits and criticized the lack of clear communication, especially given the monthly card fee of 17.90 she pays.
The Diners Extra Home card offers up to 1,000 shekels annually in cashback, with a monthly cap of 84 shekels, and benefits including 1+1 cinema tickets year-round and discounts on entertainment. However, the cashback reduction occurred amid a competitive market and after Cal lost the Playcard to Isracard. Additionally, Diners used logos of partner companies without their authorization, leading to a temporary removal and reinstatement of a fuel company’s logo on the list of cashback-eligible merchants.
The Diners Extra Home Family card, no longer issued since 2019 but still held by some customers, also saw a significant cashback cut in June from 7% to 3%. Fuel company Delek expressed surprise over unauthorized use of its trademarks in Diners’ advertising and demanded immediate removal, clarifying it has no commercial agreement with Diners despite accepting its cards at fuel stations.
This incident highlights regulatory compliance issues regarding customer notifications and unauthorized use of brand logos in credit card promotions. Diners and Cal are now addressing these concerns while maintaining the original cashback benefits for affected customers.
