For a number of years, I’ve consulted with the 2nd largest global bank on card and other loan products — many targeted at the sub prime market. After several years of work, I was disgusted with how, in my opinion, their marketing was designed to take advantage of sub prime customers. I haven’t done any work with them since.
This week, the monstrous JP Morgan Chase bank which contributed in causing our economy to virtually implode, announced that they are now eliminating all rewards on the card they themselves refer to as … get this “Chase Ultimate Rewards”. Their Senior Vice President, Bill Sheley blames the move on the Federal Government — specifically… the Durbin Amendment.
Further, Chase isn’t offsetting this loss to their customers in any manner. Customers still have to live with all the other terms and conditions of this debit card. So, Bill’s value add is to eliminate all the rewards from the “Ultimate Rewards” card and not provide added value in another manner. Now, there is an interesting marketing strategy.
What’s Really Behind This
What Bill failed to tell card holders in his letter this week, is that Chase (and other banks) may be… thats may be… required to lower the current exorbitant fees they charge from an average of 44 cents per transaction to a maximum of 12 cents. Chase has elected to jump the gun and get back at their customers by eliminating rewards effective April 19, two days before the proposed law goes into effect.
So in effect, the Fed has tried to encourage Chase to start treating consumers fairly and before a proposed change is enacted, the slippery bankers (Mr. Sheley is this particular case), are forcing consumers to pay for it.
I for one will do away with my card and plan to find a new local bank — ideally a local credit union who has the consumers interest more at heart.
If you would like to let Bill know what you think about Chase you may contact him directly at [email protected].
Regards,
Tom Wilson
http://treatmefairly.blogspot.com/
i have one of these that i barely use — but thanks for giving me the “final straw” to finally toss it for good ……. now i know why i have all my other main finances at a medium-sized credit union. bs like this gives regular consumers too many headaches to make going w/ the big credit card companies worth it.