AmEx/Citibank Nullify Annual Fee For Laid Off Customer
Chuck lost his job several months ago and wanted to continue his American Express membership, but had trouble justifying the $50 annual fee in his limited budget. So he launched an Executive Email Carpet Bomb, started his own anti-AmEx blog and started picketing...
Well, no. Actually he just called customer service and asked if there was anything they could do for him. To his surprise, he got a "yes." He writes:
A heartwarming story to share with you... I was laid off from my job in march and have pretty much purchased nothing but groceries and the occasional smidgen of gin, in addition to transportation costs, utilities and my mortgage.
I recently received an annual fee of $50 for my Citibank American Express (the card was issued by Citibank South Dakota "pursuant to a license agreement with American Express). I called customer service and asked if it was possible to either waive the fee or change the account to a no-fee option.
Mind you, I also made it clear that my only other option was to close the account and to rely on other credit cards that I have with no fees...
Sylvia, a pleasant customer service rep, transferred me within minutes to Grant, "a customer service specialist," who explained to me that because of their agreement with AAdvantage/American Airlines, they could not waive the fee — however, I was offered a $50 voucher from Citibank, which will be mailed to me and I return... thus covering the membership cost for the following year.
I was quite surprised and pleased by the level of customer service shown... I was also wished luck in my job search... all very cordial and beyond the level of consideration that I anticipated.
How about that? A service story with a happy ending, for a change.
So now you know how to get out of AmEx's dreaded annual fee — just lose your job and get lucky enough to find a compassionate CSR on the other end of the line.
(Photo: DCvision2006)
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Comments:
@pecan 3.14159265: Nah, a lesser OP probably would have just canceled the card; I know I would have. I guess he either really likes the card or just wanted to see how he could push his luck.
To me, it goes along with the general theme that companies are going at least a little bit out of their ways right now to accommodate customers who have been hit hard. It makes pretty good business sense; the companies who come out of the recession in the best shape will be very successful. And keeping customers is essential to many companies' success.
This is about a Citibank customer with a card with the AMEX logo on it, not an American Express customer with a full on American Express card. This doesn't mean you can call AMEX and get the same deal.
@TCama: It sounds like it is an American Airlines card, so if he cancelled it he would have lost his accumulated miles.... Good work OP!
@pecan 3.14159265: Maybe the OP got it when he would have been able to recoup the annual fee and then some with the added benefits. It would have made sense in better times. It probably does not make any sense now, and he wanted it removed.
I am scared to tell by CC banks I am laid off, I thought they would drop my limit and raise my rate? I am able to at least 3X minimums, but still.
I can't imagine ANY consumer being able to justify signing up for a credit card with an annual fee unless they are certain they will come out way ahead in rewards each year.
The OP probably will discover that interest he may pay and rewards be pay earn are not worth the $50 he has to pay in annual fees to have this card.
@frank64: Sounds like you have more problems if you're talking about adding to your debt while you're unemployed.
@ModernTenshi04: No I am at least paying my expenses and even more, but if even one bank dropped my credit limit, my FICO would go down and then they would all raise my rates and THEN I would be in trouble.
As of a couple of years ago, Visa/Mastercard started allowing their member banks to issue Amex-branded cards, after years of argument and litigation.
I have an Amex that's branded by Fidelity but issued by BoA - 2% cash back on every purchase. :)
IT'S A TRAP!!!!
Right? It's a trap?
I got one of the AAdvantage card solicitations in the mail this week, I didn't pay attention to the card brand, but the APR was like 24%. I think they're one mile per dollar spent, so you don't get a round trip domestic ticket until you spend $25,000. (They generally have a sign up bonus of 20,000 points, but still not worth it.) If you fly a lot and pay your bills, a real Amex Platinum ($450/yr) gives you a free companion fare for every ticket you buy with no restrictions, IIRC.
The woman in the picture has that 1940/50s look to her hair. Actually makes her look hot cuz I've always had a fantasy for that,,,,somewhere lurking in my mind.
The Citibank American Airlines cards are pretty generous when it comes to waiving the annual fee. Every year I call in to cancel my card and they ask me what it would take to not cancel. I reply, "I don't mind hanging onto it if you can refund the annual fee" and a few weeks later I get a voucher in the mail to cover the cost.
@Tankueray: Amex Platinum did away with the domestic companion airfare program about a year ago, unfortunately.
Airline rewards cards can be a good deal despite the annual fee, depending on how much your annual spend. Like another poster, I carry a Fidelity-branded Amex issued by Bank of America that pays 2% cashback on all purchases, which is better than most rewards deals I've seen.
As for the APR, in most cases, if you're going to be carrying a balance, a rewards credit card isn't a good deal-- it's best to focus on finding cards with low APR instead.
If that's a picture of Chuck, I can probably figure out why he's having difficulty finding work.
@pecan 3.14159265: It sounds like an American Airlines "AAdvantage" credit card that earns miles. AMEX comes into the picture with their "redeem miles anytime" program. In short, it's all cross-marketing. The card is really a Citi card, not an AMEX card.
There are quite a few cards where AmEx (i.e. Centurion Bank) is not the issuing bank, but which are used on the AmEx network, as opposed to the Visa/Mastercard/Discover network. I have a Bank of America Accelerated Cash Rewards AmEx. It has an AmEx logo on it and it's an American Express card as far as retailers etc are concerned, but it's not issued by AmEx, and they're not the ones lending me the money.
I'm happy to hear someone is having success with that! I have what is (still) advertised as a no-annual-fee card with Citi, and they just recently decided to start charging me one anyway (I'm a "deadbeat" who pays in full each month).
I asked to switch to a no-fee card and they said it was impossible, the only option was to close my account. I asked if I could apply for the same card again, since it had no fee, and they said I could but once my transaction history was reviewed they'd be adding the fee back on again. They said not to waste my time. Oh: the reason is because they can "change the terms at any time for any reason" -- presumably including whether or not the card has an annual fee.
I am no longer a CitiCard holder.
Why is it legal to advertise no annual fee and then charge one for some customers anyway? That seems like deceptive advertising to me.
Why is the annual fee dreaded, other than the fact that you have to pay for it? You sign up for that particular card knowing that it's there. It's precisely why I signed up with the Blue Cash card - to avoid annual fees. If you dread it, don't get it.
Aside from that, kudos to the OP for being levelheaded and asking politely. A lesser OP would have called AmEx and demanded the fee get waived. Kudos to Chuck for being patient, and for having a backup suggestion(switching to a no fee card).
By the way, Chuck, do you ever walk around telling people, "I am the prophet Chuck" or pretending your last name is Bartowski?