Hidden costs!

I was approached by a Pick n pay employee and offered the opportunity to upgrade my loyalty rewards card for store credit (you received double points on purchases). When I asked about the costs involved, I was told 'you only pay interest on the credit used.' I went along with the process, only to find out there is a R150 initiation fee and a monthly insurance fee! I then called to cancel my credit facility only to be told that the new card cannot be converted to a loyalty card,

I will need to apply for a new loyalty card again. So I ended up paying over R155 for nothing......and I need to go through the whole application for a new loyalty card.