Basically, the language was just an add-on to a section that said that if there is some kind of error or dispute about a debit, and AMEX gives you the credit temporarily back to your bank account, and it turns out the debit was okay in the first place, then they will take it back. Nothing about that is changing, just now you explicitly agree that that's okay.

Here's the old clause:

If we determine that there was no error, we will send you a written explanation within three business days after we finish our investigation. Upon your request we will provide you with copies of the documents that we used in our investigation. If we have provisionally recredited your Bank Account during the investigation and determine that there was no error, we will notify you of the date on which we will redebit your Bank Account, and the amount to be redebited.

Just add, "You authorize us or an agent to debit your Bank Account for this amount." to the end.

The rest of the new terms of service changes, with some of the increased APRs and fees may still be cause of concern for some customers.

American Express: "We Can Yank From Your Bank Automatically" Clause? Not Quite [CreditMattersBlog] (Photo: pnoeric)

AMEX just sent out some new changes to terms of service for some customers, and one of them has us scratching our heads in particular. There's various increases in APRs and fees, but then under "In Case of Errors or Questions About Your Transactions" they're now adding "You authorize us or an agent to debit your Bank Account for this amount." What scenarios would qualify under "errors" or "questions"? Don't like the sound of agreeing to let anyone make withdrawals on my bank account without myself pulling the lever. The notice of TOS changes, inside...

Notice of Changes to Your Account

The terms of your Account are subject to change in accordance with the American Express Cardmember Agreement ("Agreement") governing your Account (including increasing rates and fees, changing fixed rates to variable rates, and adding new terms). Any language in your Agreement contrary to or conflicting with terms amended herein is replaced fully and completely. All terms of the Agreement not amended herein remain in full force and effect. These changes apply to existing balances and future balances on your Account. We urge you and any Additional Cardmembers on your Account to read this notice carefully and file it along with your Agreement in a safe place for future reference.

APR for Flexible Payment Features
For billing periods that begin on or after December 2, 2008, we are replacing the third sentence of subsection B of the Finance Charges section of your Agreement with the following:
- "Except as provided below, the APR is the Prime Rate plus 11.99%."
This is a variable rate. As of October 13, 2008, the Prime Rate plus 11.99% is an APR of 16.49% and a DPR of 0.0452%.

APR for Default
For billing periods that begin on or after December 2, 2008, the last sentence of subsection D of the Finance Charges section of your Agreement is replaced with the following:
- "The Default Rate is a DPR which corresponds to an APR equal to the Prime Rate plus 23.99%."
This is a variable rate. As of October 13, 2008, the Prime Rate plus 23.99% is an APR of 28.49% and a DPR 0.0781%.

Late Fees
We are changing the day upon which late fees may first be assessed as a result of late payment. If you have not paid the Amount Due on this statement before the 10th day after the Closing Date of your next statement, you will be assessed a $35 late fee (Iowa $15). For billing periods that begin on or after December 2, 2008, we are replacing the Late Fees section of your Agreement with the following:
- "If any portion of the Amount Due on a billing statement is not credited to your Account before the 10th day after the next Closing Date, we may assess a fee of $35 (Iowa $15). In addition, if any portion of that Amount Due is not credited by the following Closing Date, we may assess an additional fee in that same billing period of the greater of $35 or 2.99% of any amount past due (Iowa $15). If any amount past due is not credited to your Account by successive Closing Dates, we may assess a fee equal to the greater of $35 or 2.99% of any amount past due (Iowa $15)."

Transactions Made in Foreign Currencies
Effective January 11, 2009, the bolded clause in the Transactions Made in Foreign Currencies section of your Agreement is replaced with the following:
- "in each instance increased by 2.7%."

Electronic Funds Transfer (EFT) Agreement
Effective December 2, 2008, we are adding a sentence to the last paragraph of the "In Case of Errors or Questions About Your Transactions" section of your EFT Agreement. The following is added after the third sentence:
- "You authorize us or an agent to debit your Bank Account for this amount."

(Photo: TheTruthAbout...)

From the Wall Street Journal:

While retailers, car companies and others hit by the slowdown in consumer spending haven't gotten the government money, financial firms of all kinds are getting federal bailouts.

It isn't clear if the application under the Troubled Asset Relief Program came before or after the credit- and charge-card giant got Federal Reserve approval Monday to become a bank-holding company.

Amex's shares are down 57% this year as even affluent consumers keep their plastic in their wallets. The WSJ says that it is unclear how Amex would use the money — and that it's clear that $3.5 billion won't help with the consumer spending slump.

Notoriously slime-filled credit card issuer Capital One has already received approval for $3.5 billion in bailout cash.

AmEx Said to Request $3.5 Billion in U.S. Aid [WSJ] (Thanks, Jameson!)
American Express Wins Fed Approval to Become Bank (Update1) [Bloomberg]

Part I: Preventing the old switcharoo.

You should always assume that the other customers are criminals and scammers, and the store's employees are Al Capone. Why should you assume this? Because that's what the store assumes about you. It's nothing personal. It's just business.

That's why you should you always take the following steps when making a major purchase.

1) Pay with a major credit card that offers purchase protection and extended warranty protection.
You may not like credit cards. In fact, you may hate them. In that case, consider a charge card. For the small annual fee, a charge card will offer you many of the same warranty protections that Best Buy and it's ilk are trying to sell you. If you eventually enter into a dispute with the store, it pays to have someone on your side. Do you think Best Buy is going to argue with itself on your behalf just because you bought a warranty from them?

2) Open the box before you leave the store and inspect the item. If you find old phone books or a severed head instead of your new laptop, it will be easier for everyone if the store knows that there's no possibility that you were the scammer/decapitator. Otherwise, they will assume that you are the guilty party and no amount of arguing will convince them otherwise.

3) Check to make sure the serial number on the item matches the serial number on your receipt. If it doesn't, the store will assume that you are the one who switched the item. Again, do this before you leave the store so there can be no question about it.

Part II: Self-Defense Tools

Credit Cards: Buy large purchases with a major credit card or charge card that has "Purchase Assurance," "Purchase Protection" and "Extended Warranty Protection." Purchase Protection is usually a 90-day window in which loss from accidental damage and theft are covered by your credit card company, provided that you paid for the item with the card. Extended Warranty Protection extends the manufacturer's warranty. These are both good things to have.

Paperwork: Keep your receipts. You're probably saying "duuuuuuh," but that's only because you don't read our tipline. Buy a folder. Get a magic marker and write RECEIPTS on it. Put your receipts in it. Put the folder in a safe place.

Camera: If you have a camera, take pictures of whatever goes wrong. Lots of pictures.

Part III: How to take advantage of these tools so that you never get stuck with a pile of crap.

Now, let's say that for some reason or other you've still managed to get yourself into a pickle. You've bought a box full of bathroom tiles from Best Buy and they're refusing to take it back.

1) Document everything. Take photographs of everything, save all the paperwork.

2) Contact your credit card company and report the fraud. Selling people boxes of bathroom tiles, or used, broken piles of crap instead of the real product is fraud. Fraud, fraud, fraud. It is not OK to sell fake stuff just because you are a multinational corporation and have a policy that says it's not your fault. "Policies" do not supersede laws.

3) Consider reporting the incident to your state's attorney general and/or department of consumer affairs. You may also want to inform the local police. It's possible that whomever put a ringer in your box is committing some sort of systematic retail fraud, and your report may help the police to catch them.

If you've followed these steps, your credit card company should be able to issue a chargeback. That's what happened with the real bathroom tile guy. There's no reason why you should be any different.

Epilogue:

If all else fails, or you find yourself in a situation not covered here, consider small claims court. Small claims court can help you force a company to uphold a warranty, and they can help you recover damages if you're unwittingly sold a used, defective, or broken product. Here's a success story from one of our readers who sued Best Buy over a defective washer. Best Buy said it was their policy that they were not responsible for selling a broken washer because the consumer didn't pay for their delivery service, but thankfully for our reader, policies aren't laws.

We found this handy chart on CreditCards.com (a credit card comparison site):

As you can see, you're not automatically covered just because you have a credit card, so make sure you read and understand your credit card's rental car insurance policy. That way you can avoid wasting money on an unfamiliar policy offered by a rental car company.

If you're currently researching credit cards, try CreditCards.com or Bankrate.com to compare offers easily.

Compare credit cards' rental insurance policies [CreditCards.com]
(Photo: Marike79 )

About two months ago, I went on a business trip with two colleagues that featured a layover in Memphis. We stopped and had breakfast at a restaurant at the airport. We made the error of not informing the waitress at the start of the meal it would be separate checks. She separated them after the fact, I charged mine to my American Express card. When I got back, I submitted my receipt for reimbursement, and kept a copy for myself.

Fast forward about two weeks. When my electronic statement was ready, I noticed that the charge from the restaurant was three times larger than it should've been. I guessed that someone fouled up and submitted the entire tab on my card. I filled out an online dispute, grabbed my copy of the receipt (from my expense report), and set it aside.

A week later, I received a letter from AmEx, informing me that a temporary credit had been placed on my account and asking for additional information. Unfortunately, life got the best of me, and I missed the deadline to submit my copy. I thought for sure I'd be on the hook for it (based on the way that most credit card companies approach customers).

Saturday, I received another letter from AmEx, which I assumed could easily be summed up as "No paperwork, no credit; too bad, so sad."

Instead: "We have determined that the inquiry was correct, and the credit has become permanent." They had reached out to the restaurant, confirmed the error, and I "won"!

While I don't recommend doing what I did (in terms of forgetting the paperwork), I want to give AmEx a public round of applause. When I was growing up, my dad always told me that AmEx was infinitely better than the other credit card companies. This validates it.

Hooray! It's nice to hear a happy story.

(Photo: kajatl )

My recent problems with Sears have driven me so crazy I checked to see if you had EECB contact info. When I saw all the stuff you had on Sears, I thought you'd love this story. I'll try to be short.

As background, I have an irrational loyalty to Sears. In the last 5 years I have spent probably over $20,000 on appliances, mattresses, and power tools there. I drive by 3 Home Depots to get to Sears; I want them to succeed for some bizarre reason. I don't even get it, haven't really even had great experiences, but nonetheless keep on going back. In May I tried to buy a lawn tractor, which is where the problem began.

ROUND ONE: The day after ordering the tractor online, I went back to check the order status and saw nothing. So I called Sears and they said the order had been declined by AMEX. I asked, "Was anyone going to call and tell me?" and she said, "No, we don't do that." So I called AMEX, told them to take the charge (which they denied declining), and called back to place the order live. She then told me that it would take 3 WEEKS for delivery. (Do you know how much it costs to pay someone to mow 3 acres?) Reluctantly, and accepting the situation in good humor, I agreed.

ROUND TWO: 3 WEEKS later: nothing. No call, no delivery, nothing. I call Sears, and they again blame AMEX. I explained that AMEX cannot possibly be the problem since I spoke to them live. I also noted that in the intervening three weeks, I charged a $15,500 set of airline tickets and $18,100 for a new roof, both of which zipped through without a problem. Nonetheless, I told him I'd replace the order if they didn't make me wait 3 more weeks. He put me on hold for an eternity and then agreed. I had bought the tractor on sale so I actually think he was doing some work to recreate the original terms of the sale. I told him I would not hang up until he confirmed that the charge went through so there would be no more opportunity to blame AMEX. He laughed and agreed, and we hung up friends. I suggested that they call customers when a sale doesn't go through, because that's a way to GET MORE MONEY, and he said he'd pass that along. Which he clearly didn't.

ROUND THREE: My tractor, now ordered twice, was scheduled for delivery today, so I called last night to confirm. What a shocker, same story. Now, normally I would just say screw it and order somewhere else, but (1) it takes a long time to research tractors, and I didn't want to go through that process again, and (2) I had gotten a really good price or $1299 for a $1799 tractor and I wanted them to honor the price. ALso, the sales for tractors all happened around fathers day and now I would be stuck at full price somewhere else. I should also note that one bizarre thing about Sears tractors is they have identical models where one model is on sale and one isn't. I don't get it, but the picture on the site does show them in different colors, but when you click "compare," they are exactly the same - every word, every spec. So when the woman said, I'm sorry, it's out of stock, I laughed (as did she) and suggested that they give me one of the identical ones at the sale price. She said that a supervisor could do that and told me to call back today.

ROUND FOUR: So I called this morning, asked to go to a supervisor. I explained what happened, that I've been waiting 6 weeks now for a tractor, and can't belevee that no one at Sears actually seems to want to take my $1500.

Me: I just want to know, can you get me the same or similar tractor at the same price, delivered this week. (She put me on hold and in the meantime I went to sears.com, found an identical tractor at the same SALE price, in case she was too incompetent to do so).
Manager: That's not possible, I can give you the same tractor for $1800.
Me: Why would I pay more for the same tractor? Can't you honor the same sale price you originally gave me?
Manager: Because it's not our fault the card was declined.
Me: But it is your fault, because the customer service guy told me it was not declined, and promised me the sale went through. We went through a big exercise to make sure it wouldn't be declined.
Manager: I can let you talk to someone else.
Me: No, just do what the last guy (who wasn't a supervisor) did, and give me the original sales price. You have a record of that transaction, right?
Manager: I'm not going to do that. I can let you talk to someone else.
Me: NO, LET"S JUST ORDER THIS OTHER ONE (the identical one I found on sears.com), fully ready to put myself through another round of wholesale incompetence.....sound of silence....the bitch hung up on me!

I got transferred to some other customer service line, and the first thing the woman said to me was, We don't do Sears.com problems. I asked who I could talk to, and she said, there's an email on sears.com. I asked if she wanted my $1500 or wanted to lose a loyal customer, and she said, you'll need to go to sears.com.

Please note, and I swear on this — I have always been polite, never rude, just insistent and clear in what I want. And I've asked each person why a company which loses a sale due to an (alleged) credit card decline doesn't call the customer to let them know about it, and they all say, We just don't do that. I've had $10 orders not go through other companies for one reason or another, and the company at least emails me to let me know. It's like Sears doesn't want to succeed or make the sale, or secretly delights in knowing that I'm sitting around waiting for my non-existent delivery to show up.

And to hang up on one of the last people in America who haven't totally given up on this piece of shit company? Is just plain stupid. Whatever, I guess I'll have to go to Lowes.

Really, Gregg. We'd love to tell you to write an EECB or something to Sears, but let's be honest with ourselves. They just don't care.

(Photo: So Cal Metro )

She writes:

I handle the credit card accounts for my company. We had an inactive American Express Delta Sky Miles card that hadn't been used in several years. (3 to be exact) I called AMEX and closed the account informing the CSR that our company had another AMEX account and that was our primary. I was assured the account was closed and moved on.

Come March, our production manager made a small purchase from a company whom we use infrequently and may have had this old account number in their database (a disturbing thought). Now our production manager does not have the old card in his possession, nor does he have the old account number anywhere. One individual, our CEO, had exclusively used this particular AMEX.

I immediately called the vendor and American Express wanting to know how a transaction could clear on a closed account. The American Express CSR informed me that the account was indeed closed, but it was not uncommon for transactions to go through. I was told that recurring transactions will go through. I told the CSR the story that this was a company we infrequently purchase from, and that this card had not been used in years.

The just from AMEX – Since this was a phone order and the physical card was not used to make this purchase the transaction would have been approved. Apparently the vendor also used a dummy expiration date as the old card expired in 2007. Since the vendor keyed in the account number the transaction was permitted to go through. I told American Express that this was an appalling practice – a closed account – especially one closed 6 months ago – was a closed account and any transaction put to that number should have been declined. The CSR kept insisting that it was my responsibility to make sure all vendors eliminated the old information. This is absurd. Oh, and the CSR told me that this happens all of the time. Many of the credit card transactions machine do not require the security code to process a keyed transaction – just a number and date.

I have sent emails to whatever executives I could find at American Express, and I wanted to alert your site to this wonderful practice. I mean I had heard about ISP's and television services not actually canceling your account, but a credit card company? Seems like bad business practice if you ask me.

American Express isn't alone in keeping zombie accounts on life support. Bank of America's never-die accounts are also known for their miraculous rejuvenations, complete with unexpected service fees. The tactic lets creditors cling to customers, while appearing to oblige their reasonable requests to close their accounts. It's a disgusting practice that should be outlawed.

(Photo: danesparza)

Let's first check out the professor's relevant credentials:

Professor Levitin's research focuses on financial institutions and their role in the consumer and business credit economy, including credit card regulatory and competition issues, mortgage lending, identity theft, DIP financing, and bankruptcy claims trading.

I called Citi and disputed the charge. The charge is a billing error under 15 CFR part 226.113(a)(1). Unfortunately my dispute did not compute in the Citi system. Because I was contesting an unliquidated amount of the charges, however, my case didn't fit into one of their eight dispute check boxes. (Note that Reg Z does not require that I know the amount of the error. See 15 C.F.R. Part 226.113(b)(3).) Finally, after speaking to a supervisor, I just decided to dispute the entire amount because that was the only way I could go forward with a dispute given the unbending parameters of Citi's computer system. I also contacted PACER to make sure that they had processed all my fee exemptions.

Fast forward to earlier this week. I still hadn't heard anything from Citi or PACER about the dispute's resolution. But, to my great surprise this month's Citi statement arrived. It says that I owe the full PACER balance and there's a finance charge tacked on for the disputed amount.

When I called Citi to inquire, I was told that I hadn't disputed the charge the previous month. This was in spite of fact that there were numerous notes about the nature of the dispute in my file. In other words, Citi had taken down all sorts of details about my dispute, but never actually processed that I was disputing the charge. Citi entered the dispute a month late, and only after I called to check up on it.

Well, Citi has now (supposedly) removed the finance charge and recorded the charge as contested. But Citi tells me that I need to submit documentation about the dispute or the charge will be reinstated. That means I have to send some 50 pages of court orders to Citi at my own time and expense for a merchant's mistake. The duty to investigate a billing error is Citi's. Nothing in Reg Z requires that the cardholder submit written documentation to the card issuer at my own expense. So why am I footing the bill? (Maybe there's language to that extent buried in my cardholder agreement...)

1. His credit report may take a ding from the late payment, something he has no control over and Citibank's CSRs are too incompetent to fix.
2. The surprise rate on the finance charge was 101.211%
3. After futzing with a compound interest calculator for half an hour, the professor couldn't figure out how Citibank was calculating the finance charge.
4. The late payment could trigger universal default provisions with his other creditors, causing a world of financial pain from Citi's mistake.
5. He can't close the account without losing his rewards or further dinging his credit score.

We take away one very simple lesson that every policymaker should appreciate: a renowned expert on credit cards is being harmed by his creditor and is practically powerless to fight back. Does this seem fair or reasonable to anyone?

My Very Own Risk-Based Repricing Experience [Credit Slips]

I recently reached what I bet is a rare milestone: I have now gone 30 years, basically my entire working life so far, without a credit card.

This may make me seem like some kind of nut, or at least an anachronism. You know, the type of person who still isn't convinced that indoor plumbing is worth the investment.

I do have what's sometimes called a "travel and entertainment" (as opposed to credit) card, in my case American Express. I'm not here to plug Amex, but I believe a card like that, which has to be paid off in full each month, imposes a certain restraint that could keep many of us out of financial trouble.

30 years without a credit card [Consumer Reports]

That quote is absolutely wrong. I worked for [redacted] for 3 years as their Merchant Fraud Control Analyst, and now I work for a retail company handling all chargeback situations. Basically, if someone disputes a charge for any reason then I'm the person the bank/Amex gets in touch with. My point is, look at the attachment this is what a retailer gets in fraud case from Amex (for MC and Visa its not much different). No where does it say proof of ID...and how the heck would one send video in the allotted time anyway? Just thought you guys would like a copy of the real thing.

Thought you might enjoy this: We got an application for a jetBlue-branded American Express card in the mail today for our oldest daughter. She is four. We flew on JetBlue about four months ago, so I suppose they sent their entire passenger manifest over to AmEx.

Fortunately (?) it is not pre-approved. I am half-tempted to fill it out and send it in, with her 2003 birth date and under employer, writing "I don't work, I'm a kid!" I'd even have her sign it in her barely legible four-year-old scrawl. I wouldn't be the least bit surprised to get a card back. If they send an offer for her two-year-old sister, maybe we'll try to get her one.

Regards,
Carl

Sam writes:

Morning Meg,

One more update, I was contacted by American Express and they were able to resolve the situation and they obtained a refund from Best Buy. I should be seeing that show up on my account in a couple of days. Thanks for the help and I'm glad this story was able to educate some people on how not to get screwed by Big Business.

-Sam

PREVIOUSLY: Best Buy Sells You A Box Of Bathroom Tiles Instead Of Hard Drive, Won't Issue Refund

Discover: For billing periods after Oct. 1, the late fee will be $19 on balances up to $250 and $39 on balances over $250.

Chase: Added a third tier. It now charges $15 on balances up to $99.99, $29 on balances between $100 and $249.99, and $39 on balances over $250.

Bank of America: $15 on balances up to $100; $29 on balances over $100 up to $250; $39 on balances over $250

Amex: $19 on balances up to $400 and $38 on balances of $400 and over

Capital One: $19 on balances up to $100; $29 on balances of $100 up to $1,000; $39 on balances of $1,000 and over

Citibank: $15 on balances up to $100; $29 on balances of $100 up to $250; $39 on balances of $250 and over

Pay your bills on time. Late fees make the Consumerist cry.

Why are credit card rates still out of control? [MSNBC]
Lowcards
(Photo:Jeffreywithtwofs)

I'm disappointed that USAA, which is otherwise renown for their customer service and concern for their customer's well-being, would resort to this chicanery. Maybe AMEX is making them do it, I dunno. (update: A reader with a USAA Mastercard writes that he received an arbitration notice as well).

In any event, the notice also says that I have until October 15, 2007, to opt out of the arbitration agreement without penalty simply by signing and mailing in a form, an option I will most certainly be exercising.

It seems that this offer was attractive to Procter and Gamble, because they've entered one of their charitable programs (which relies on their water purifying technology to provide safe drinking water to children) into the contest. And it looks like they may win.

Amex claims that the entry is legit because although the idea was entered by a Proctor and Gamble employee (who, by the way, is the director of the program), the "fulfilling organization" will be UNICEF. Ostensibly, UNICEF could then choose not to purchase the water purification technology from P&G, however unlikely that would be. From the Member's Project Website:

This project idea was submitted by a Cardmember who is employed at Proctor & Gamble, but the project idea Cardmembers are voting on is not the P&G's clean water program with PSI (Population Services International). American Express has selected UNICEF as the organization that will fulfill and bring the project idea to life. If this project wins, UNICEF will receive the final award money and make the decision about what technologies and purifiers they will use to clean water.

Any Cardmember was able to submit a project idea regardless of his or her affiliation with a for profit corporation or a non profit organization. Many project ideas were submitted by individuals with such affiliations. Decisions about which fulfilling organizations will bring the project ideas to life were made by American Express, not by the Cardmembers who proposed the project ideas.

Procter & Gamble is in the midst of making the world's clean-water crisis its primary philanthropic mission, using its Pur-brand household water-purification system. It reported last week that a study by the U.S. Centers for Disease Control and Prevention suggests that a system such as Pur is effective in cutting death rates from water-borne illnesses.

P&G, too, is keeping an eye on its bottom line while doing good. "It's a cause-related issue, but we'll also learn things about low-income consumers that are going to help P&G overall," says Greg Allgood, P&G's director for children's safe drinking water.

And what is the motive of the Child Safe Drinking water project? According to the New York Times, P&G will sell its various water purification products in the US, and use the profits to distribute more of its product overseas. This information won't be noted on the product's packages. Why? From the NYT:

The packages could note that profits will go to Population Services International, the nonprofit group that actually handles the distribution of Pur overseas, but that is not a well-known name. "We don't think it would be understandable to consumers," Mr. Allgood said.

Procter is also traveling incognito in the American Express Member's Project, a Web-based initiative that encourages people to submit ideas for solving a societal problem. American Express cardholders vote for their favorites, and American Express will award up to $5 million for the winning idea.

Mr. Allgood entered the science and theory behind the Children's Safe Drinking Water program. But he said that the Member Project's rules precluded him from naming it, or mentioning Pur or Procter.

Procter & Gamble's project has a fairly significant lead in the voting, which closes on August 7th.

Is Procter & Gamble (or the P&G employee) doing something wrong by entering its products in the contest? Here's the Child Safe Drinking Water blog, which clearly shows P&G's logo, but is presented as if the project is somewhat less significantly funded than one might imagine. After all, P&G calls "Children's Safe Drinking Water" their "global signature program," and according to the Times funds the project through sales of their products to US consumers. For comparison's sake, here's what "Children's Safe Drinking Water's" actual official site looks like.

So it's probably not hurting for cash. Then again, we find it hard to take what amounts to a gigantic PR clusterf*ck for Amex too seriously. If people are voting for children to get drinking water, and the children will get the drinking water...

What do the Consumerists think? Should P&G's project be disqualified in favor of projects from non-profit organizations?

Children's Safe Drinking Water Official Site
Amex Member's Project
A Reverse Profit Strategy Faces a Commercial Test [NYT]
Starbucks takes up cause for safe drinking water [USA Today]
Children's Safe Drinking Water Blog

Member's Project Thread Full of Angry Amex Members

From the Boston Globe:

Gwenn Bezard , research director at Aite Group , a banking consulting firm in Boston, says: "If you're high net-worth and a high spender, you will be better off using an American Express product because of the value of what's out there."

That's because American Express charges merchants nearly 2.6 percent in fees for every dollar of transactions done with its cards, compared with less than 2 percent on average for Visa and MasterCard, Bezard said.

That adds up to extra revenue that American Express uses to fund perks that appeal to its wealthy cardholders, the same approach Bank of America is taking with its new card.

"This is just an opportunity for us to leverage the great capabilities of our credit card business to offer something for our most affluent clients," said John Bahnken , president of the bank's Global Wealth & Investment Management Products Group , which is based in Boston.

Bank lavishes perks on new credit card [Boston Globe]
(Photo: tengaport)

At the bottom of page three is a coupon with four check boxes on it. Check each one and I can opt out of a multitude of different marketing opportunities. Naturally, I'd prefer to simply call in my opt-out preferences to the 800 number printed on the the slip. Otherwise I'll have to dig up an envelope (no reply envelope was included), write the multi-line address on it, stamp it, mail it, and hope for the best. Calling the 800 number is relatively free and painless, while dealing with postal mail is by definition a pain in the rear. And for some reason, I just don't trust this method to actually work.

I call (800-297-8378 if you want to try it for yourself). I get a recording welcoming me American Express and notifying me that the call could be recorded... then abruptly says: "The computer system needed to answer your questions is not available." And it hangs up.

Sadly, one cannot opt-out of telephone and postal marketing through AmEx's website, so it seems that Christopher will have to locate that stamp. What's the deal, AmEx? 5 days is much too long to go without a way for your customers to opt out via telephone. As Christopher says, "If this is all a scam (and I hope it isn't), shame on AmEx. If, instead, it's the longest, most difficult computer error in the history of mankind, well, it's time to put out a press release." Too much to ask? —MEGHANN MARCO

American Express' Shady Privacy Practice [Yahoo! Tech]

So I dug out the receipt and she called Compaq/HP. She told them everything and they said it needed to be sent in for repair and that they WOULD cover it under the 1 year warranty. So she had me fax them the receipt. When she called back they said that they WOULD NOT cover it.

Now I am mad. So I called back this morning and went through the whole thing with several layers of managers and what not all saying no. I find this absolutely ridiculous...is there anything I can do? Should I contact HP non-support customer service? I just find this so ridiculous. I literally could have bought the laptop a week later, still given it to her on Christmas, and thus it would have broken the same time, and it would be covered.

The Consumerist writes:

David,

Sorry to hear about your troubles. Technically, you are past the one year warranty and they don't have to help you. The way I see it, you have two options.

1) You can try to get in touch with a supervisor and plead your case. Play the Christmas card. (No pun intended.) You might find someone sympathetic who will help you out. They are not obligated to help, so be nice.

2) If you bought the laptop with a credit card, you might not have any problems at all, which is why we always, always, always suggest you buy large tech items with a credit card. Say, for example, you had a Citi Mastercard:

"Extended Warranty is a special benefit offered to Citi Platinum and Gold MasterCard Cardmembers. This service enables you to make a claim for repairs if the original manufacturer's warranty has expired on an item you purchased on your MasterCard card. Your claim must be made within the Citibank Extended Warranty period (double the time of the manufacturer's warranty, up to one additional year). No registration is necessary."

You can submit your info to Citi and make a claim for repairs through them. Lots of credit cards have this. If you don't have a card that does, we suggest you get one specifically for this type of purchase. You don't need to carry a balance on it to be eligible for this program, and you don't need to register.

Some debit cards also have the Extended Warranty benefit. You might want to check to see if yours does.

Please let me know if this advice helped you. If you get your laptop repaired we'd love to post your story! Good luck and keep in touch.

Yours,

Meghann

David writes:

Meghann,

I wanted to follow up with you concerning our emails copied below to let you know that your help was incredible. I have an American Express Rewards card that I use for everything. I love the customer service from Amex and the fact that I have to pay it off every month keeps me out of the credit card debt problem (which I luckily just dug out of).

Thus, your wonderful response reminded me that I bought the computer with my Amex which should have the extended warranty for products. I called them up and sure enough, they would take care of it. I just had to take it into a shop to be diagnosed. After that just fax in the report and receipt, and since they were giving me a full refund on the computer, the computer itself. They even said they would cover the cost of the diagnosis!

It took a little over a month to get everything taken care of and the proper authorizations, but I now have been credited the full cost of the computer plus tax and can go get a brand new computer.

I am more than impressed with Amex and eternally grateful to you and the Consumerist for reminding me of this wonderful service available to me.

Thanks,

David

This could be you! Be sure you know what benefits are offered to you as a credit card/debit card holder. Take advantage of them! Card holder benefits can make your life easier, and as we've seen here, they can save you a lot of money. Just be sure to use credit wisely, lest the cost outweigh the benefits.—MEGHANN MARCO

(Photo:robertpaulyoung)

Hi Ben, I just wanted to let you and everyone else know that the charge-back worked like a charm. It took a while, but we received the refund today for our non-private car and all of the hassle that we went through during our trip to NYC. This was a full refund from American Express, not just the difference, and I thank you and Consumerist and all your readers for all of the advice.

Behold, the power of the credit card chargeback.

It's relatively easy to get one. If a product or service goes wrong and the company refuses to fix it, you just call up your credit card company. Tell them your sob story. Ask for a chargeback. Be advised that requests will require some investigation on the credit card company's part before processing. — BEN POPKEN

The pitch is simple: a bunch of great discounts on hot items, and you throw items at your computer in disgust after you receive messages like, "Sorry, just missed it", every time you vainly try to redeem a special.

Inside, what's left of the scheduled promotions and how to synchronize your clock with their timeserver for extra efficiency. — BEN POPKEN

The promotion has four segments:

Holiday Offers: Offers from Amex partner merchants
Featured Products: Savings on select merchandise while quantities last.
Wish Certificates: Limited inventory of gift certificates released on 11AM, 2PM, and 6PM EST.
Hot Products - Savings on a small quantity of products, released at 12PM, 3PM and 7PM EST.

Read their FAQ for more info.

My Wishlist Items

All of these times are Eastern Time unless otherwise specified. Items listed here are unconfirmed, please refer to the "My Wishlist" page for up-to-date information.

December 12:

Hot-Products:
12:00 PM - 100 MOTOKRZR/Motorola Bluetooth Headsets 150$ each (retail: 579.98)
3:00 PM - 100 RED MOTORAZR V3M $120 each (retail: 399)
7:00 PM - 100 MOTOROLA Q $150 each (retail: 499.99)

Wish Certificates:
11:00 AM - Home Depot (20% off)
2:00 PM - Toys R Us (25% off)
6:00 PM - Blockbuster (25% off paid monthly membership)

Decmber 13th:

Hot Products:
12:00 PM - 80 White model L Geneva Sound System 175$ each (retail: $718)
3:00 PM - 70 Black model L Geneva Sound System
7:00 PM - 50 Red Model L Gena Sound System

Wish Certificates:
11:00 AM - Land's End gift certificate (25$ gift card)
2:00 PM - Border's gift certificate. (10% off electronics/video games, 20% off DVD)
6:00 PM - Best Buy gift card

December 14th:

Wish Certificates:
11:00 AM - Best Buy gift card
2:00 PM - Toys R Us or Amazon
6:00 PM - Toys R Us or Amazon

Syncing Your Clock To Their Clock

According to the FAQ on the American express website, "When you load My WishList, the site synchronizes with our master clock. This master clock is synchronized with the U.S. government time server at the National Institute of Standards and Technology at nist.gov. All products are released based on this master clock."

This is wrong, it's actually a few seconds off.

Read these instructions (PDF) on synchronizing your desktop clock to a NIST timeserver.

Macs
Windows 2000 and XP
Windows 3.1/95/98/NT/Me

This will have your desktop clock more accurate reflect their master timeserver than the clock on their webpage.

References:

FatWallet
SlickDeals

When she complained to Golden Touch Chauffeured Transfers, they were combative and lied, even after Shonda enlisted AMEX to help.

A Dallas resident, Shonda's good time with her boyfriend in Manhattan was bookended by the most classic of Big Apple experiences: dealing with assholes.

Now she's been overcharged by Golden Touch by $68. She's miffed.

Shonda: embrace the power of the chargeback. Call up AMEX and get the charges reversed. Boom.

Next time you visit New York, take a taxi to and from the airport. LGA to midtown should cost you around $30, including tip and toll. Both airports have taxi stands which are a bit more regulated than some of these shyster car services. — BEN POPKEN

Shonda's screenshot of the Golden Touch rental, her letter of complaint and AMEX itinerary, inside...

Shonda writes:

Screenshot of choices:

Itinerary:

—-—Original Message—-—
From: American Express Travel [mailto:service@americanexpress-travel.com]
Sent: Wednesday, August 09, 2006 1:09 PM
To: (redacted)
Subject: American Express Travel Reservation - New York La Guardia Airport Trip

[snip]

Ground Transport Details:
—-—-—-—-—-—-—-—--
______________________________________________________
Provided By: Golden Touch Chauffeured Transfers, New York (LGA)
Tel: 1-800-253-1443
Date: Thu Oct 19, 2006
Type: Airport To Hotel
Quantity: 1 Car (3 per Car)
Status: Ground Transfer Confirmation - 21378XXXX
Voucher: (redacted)
NOTE: You must use the link above to print this voucher.

______________________________________________________
Provided By: Golden Touch Chauffeured Transfers, New York (LGA)
Tel: 1-800-253-1443
Date: Tue Oct 24, 2006
Type: Hotel To Airport
Quantity: 1 Car (3 per Car)
Status: Ground Transfer Confirmation - 213785512
Voucher: (redacted)

NOTE: You must use the link above to print this voucher.

______________________________________________________
Trip cost details:
—-—-—-—-—-—-

All prices are shown in U.S. dollars:

2 adults
Flight + Hotel Price: $2,213.08
Taxes and Fees (Flight + Hotel): $323.47
Golden Touch Chauffeured Transfers, New York (LGA) (Includes Tax): $73.75
Golden Touch Chauffeured Transfers, New York (LGA) (Includes Tax): $62.50

[snip]

Additionally, platinum card holders can get back rubs, but the blowjobs and nose candy are reserved for black card members.— BEN POPKEN

AmEx Takes Personal Service to the Next Level [BRANDWEEK] (Thanks to Joseph!)

$100 restaurant gift card for signup, 10,000 Thank You points after the first purchase, 0% balance transfer until 12/07, 5% rewards back on supermarkets, gas stations, and the like, and 15.24% APR.

Terms and conditions here

Apply by going here and entering F1M3.

What do you think? Seems like a decent deal to our tiny brains. — BEN POPKEN

$100 from Citi AMEX Diamond Preferred Rewards Card [Blueprint for Financial Prosperity]

We reviewed three of the top direct banking solutions, HSBC, ING Direct and Citibank ESavings. HSBC trumped for having the most features and fewest restrictions. There's no minimum balance and doesn't need to be linked to a second account.

For the ultimate in banking solutions, link your HSBC account to a Fidelity one. You can buy and short stocks, place balances in money market accounts, in addition to access to AMEX, debit card and a checkbook.

A downside is that you'll have to juggle a Fidelity debit/credit card and an HSBC Direct ATM card, but we think you're up to the challenge.

I'm done with your parlor game called Guess Your New Interest Rate! For the third time in 1.5 years, you goosed mine to 29.9%. I have been faithful to your tied-to-the-tracks 14-day payment window. I'm nowhere close to exceeding my credit limit. Lord knows your reason this time. Crooked stamp?...

Something is causing you to play this game. Wall Street? Revolving debt did drop $1.5 billion in March. Not good for revenues. A Wall Street knife to your throat is scary.

A computer simulation guessing that people like me won't notice our rates have tripled? That might be it.

It's the plight of guys like Ben who pay their credit card bills faithfully every month that makes me — a man who pays his credit card bill only when he happens to remember it — positively tremble at the prospect of breaking out the old magnifying glass and checking out my fine print.

Cutting off Amex [Church of the Customer Blog]

But Mouseprint found some in the terms and conditions: "Transactions made in foreign currencies are subject to a conversion rate. Foreign currency conversion rate is base rate plus 2%, as described in the Cardmember Agreement." [AMEX website, April 13, 2006]"

As Edgar notes, otherwise there are no fees. But a fee is a fee. "Absolutely no fees except for one that probably doesn't matter too much" probably didn't sound like such a fetching headline, wethinks.

Jonathan Myers writes about the half-assed nature of American Express's 'My Wishlist' web site:

A lot of people have heard about the American Express MyWishlist promotion, but if you haven't, let me summarize. Once or twice a year, typically around holidays (Christmas, Easter, etc.) American Express offers products to consumers at far below the retail price. The products are in short supply, small quantities, and it is first come first served. Examples would be an Xbox 360 for $150, or a Range Rover for only $5000.

The last time this promotion ran, I was the winner of a Jonathan Adler vase for a mere $75. On the website, there is an intial page that allows you to say "I want it!" and typically, the response you receive is, "Sorry, just missed it." This time, however, I made it to the next screen and populated it with my credit card information. I clicked submit, and then....

Nothing.

So I called the customer service line, and the canned response was, gee, sorry, but we'll make sure we have it fixed on the next go round. We discussed bandwidth, anticipation of internet traffic, etc. The end result - nothing we can do now, but it won't happen again.

Well, that wasn't quite true either.

So this go-round, I signed up for the Xbox 360. Same exact thing happens - I get through, input all my information, get super excited to have the latest and greatest video game system for the holidays at a reasonable price, and then.....

Nothing.

I called American Express, understandably upset. After 15 minutes on hold, I was informed I had to call a specific MyWishlist number, which I did.

I spoke with a young guy, explained the situation, and quickly saw he could do nothing. I asked for his supervisor, explained the situation, and saw she, also, could do nothing. I asked for her supervisor and was hung up on.

I called back, and spoke with another young woman. I asked for her supervisor - and was hung up on. I called again, and miraculousy reached the same woman that hung up on me. I was connected to her supervisor after a 20 minute wait, then explained the situation. She promised to "escalate" my issue, and ensured me I'd be called within 48 hours.

4 days later, I did receive a call. I explained everything, and the answer was a resounding, OOPS. They admitted they were in error, but refused to do anything to fix it. I said, "Isn't American Express known for their customer service, especially in a promotion that is specifically to show customers that they are appreciated? Wasn't I promised that this exact issue would be resolved?" I was given excuses that bandwidth had been increased, but that the need was underestimated. Underestimated? Let's think - Xbox 360 - arguablly the hottest item of the Christmas season. A Range Rover Sport for $5,000? Think people might want that?

I explained that failing to plan is planning to fail. Any fool could realize that, gee, a lot of people might want these items, we should probably build our systems to handle it. But no. And furthermore, when this was presented to them, they refused to do anything.

I find it disappointing that American Express knowningly and repeatedly screws over their customers in this promotion. It's a scam, if you ask me, but no one is willing to do anything, and losing one customer is a drop in the bucket to an organization this large. I would love it if I could let people know that this is a scam, don't waste your time, even if you win, you lose.

Have any of you actually won anything from these promotions?