http://www.youtube.com/watch?v=vt-a_8LYzrw

Joel Grover of KCBS Los Angeles broke a story about how AMEX is closing accounts of their best customers. The customers then lose ALL of their frequent flyer miles! One gentleman lost 7 million miles!

However, I then put two and two together when I found an internet article about Citibank and American Airlines. So I broke a story a week ago about how AMEX is closing long time customers cards which renders their frequent flyer miles worthless. Then American Airlines is reselling those same frequent flyer miles to citibank in exchange for favorable loan terms. (Jim Cunningham, does that qualify as a conspiracy?) It is such an unbelievable story, but will it ever make the mainstream media?

http://dailypuma.blogspot.com/2009/04/breaking-news-amex-and-citibank-have.html

By the way, I was told that Citibank is next on the list of the change in terms by a citibank employee at an actual Citibank Branch, but it is possible that she did not know the exact scenario. Citibank has stepped up its six month zero interest offer with a 3% fee (that equals 6 percent up front because it is for only half a year). Maybe they will hold off and simply try and lure people who have life of the loan privileges to go for another offer that is short term and then will explode into a high interest rate offer.

While Democrats and Republicans throw Tea into the River, The Credit Card Companies are taking off with the real loot.

Nowadays, anybody with a credit card that has an interest rate lower than 10% is considered a “Toxic Asset” by the credit card companies.

http://www.Daily-Protest.com

Regarding “carrying a balance” (and moronic, #8), one of the original public quotes was from Chase’s spokesperson, and stated similarly along these lines: “a relatively small number but they carry billions in unsecured debts.”

In every instance, Chase’s approach has been to demean account holders, cry “poor, poor, bank” and portray customers as though they were risky, slow-paying laggards who deserved it. And did you notice the word choice, “unsecured”? That too, was moronic. By nature, all credit card accounts are unsecured, excepting some with specific clauses.

I might add that one type of informally imposed security exists: the fear of credit scores that consumers had better have. One’s credit score is now having an increasingly frightening impact, affecting job searches, insurance, mortgages, car loans (and more). What is arising amounts to life of “universal damnation” (related to “universal default”), should one be impacted by a lowered credit score.

No, your mental processes are not short-circuiting! Chase has been making moronic decisions, which it has consistently tried to justify with moronic statements.

I certainly agree that the issues you raise with respect to merchants are troubling. Somewhat ironically, as an entrepreneurship professor, I literally must point out to students that accepting credit cards is necessary for e-commerce oriented businesses (and unless one provides a cash versus credit card price, is probably going to be needed to meet customer expectations in brick and mortar businesses).

Given the above practical realities, I also understand what you meant regarding “we’re forced to do do business with these crooks.” However, I want to provide some additional remarks for site visitors who may not understand some of the nuances of the issue. Unfortunately, the stranglehold that credit card companies have managed over time to create is universal, affecting consumers and merchants alike. If cardholders are in a position such that they must carry a balance, then they are “forced to do business with these crooks” as well.

As you know, due to big bank mergers and consolidations (which occurred unchallenged by anti-trust regulators — imagine that, the credit card industry getting special treatment!), there are only a few choices relative to card issuers for all intents and purposes. For the most part, customers can select between Bank of America, CitiBank, Chase, American Express, Capital One, or Discover (relative to a short-list of the biggest issuers). And, as the post above suggests, they all tend to copy one another’s business practices. In many cases, store cards and those issued by local/regional banks, are actually serviced by one of the aforementioned “big” credit card companies (along with a plethora of affinity cards).

Meanwhile, it is an insult to anyone who is charged a fee because they were given a fraudulent payment. As it relates to this, the bank where I have a checking account charged a $30 fee when a rebate check that my wife deposited bounced. I think that the person or entity that negligently bounces a check (or charge) should be the only recipient of a fee (even if that means doubling the NSF charge to the check writer, such that the person who innocently accepts the bad instrument is held harmless). I hesitate in saying this without a caveat, because credit card companies have been playing games with credit line reductions, unbeknown to card holders, only to turn around and impose over limit fees; I have already indicated in other posts that this is loathsome behavior on the part of banks (and not an act of negligence on the part of the card holder).

I certainly appreciate any and all inbound links (and you are welcome to use the supporter badges on the ChangeInTerms.com site). I’ll be happy to provide reciprocal links to your site(s). One of my biggest concerns has been small businesses. Indeed, I have not thus far addressed the merchant side of the credit card debacle to any great extent, thus far, as I have been focusing on the borrowing side on the part of consumers and small businesses. Thus, your present and future dialog is highly valued. Take care.

“In January, Chase Card Services changed the terms for thousands of customers who had low interest rates but were carrying a balance.”

Is it me, or this is moronic? Of course, these customers were carrying a balance.

Merchants are forced to pay higher rates for ‘rewards’ cards. We can’t opt out and refuse to take them.

And, unlike cardholders, we’re forced to do business with these crooks. On-line merchants that don’t accept credit cards don’t usually stay in business long.

I’m in the early stages of putting together a site related to merchant911.org but aimed at cardholders. Cardholder911.info will provide ID theft and card fraud protection information for cardholders and keep the public informed about all the ripoffs that are going on out there. You can bet you’ll get a link or two from us.

Tom Mahoney, Director
Merchant911.org
Protecting against card fraud since 2001 – 3900 members and growing.