Smart Money: Long relationship means nothing to mega-corp
Published: November 8, 2009
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share thisDEAR BRUCE: I recently applied for a gas credit card for my wife and was denied by the issuer. Equifax reported we had one late payment, but this is not the issue. The issue is I have about $150,000 worth of stocks in an investment account by a subsidiary of the card issuer. I have no mortgage, but I do have a home-equity loan from the same company. My feeling is that my 30-year relationship should have some value, but the account manager says that his management team says this is not taken into account, because it is a separate company. My gut reaction is that if they think I am not creditworthy, I should move my assets. Am I expecting too much for the 30 years of my loyalty with the same broker? - G.R., via e-mail
DEAR G.R.: You should realize not only does the left hand not know what the right hand is doing, more often than not, it doesn't even know there is a right hand. The fact that you have a relationship with one branch of a huge conglomerate rarely will be taken into account. That's the hard fact.
DEAR BRUCE: I received from one of my credit cards several checks in the mail to use as I prefer, to transfer balances and so on. The company stated "use these checks today" to save on their low, fixed rate that lasts until the balance is paid in full. As long as I keep my account in good standing, this great low rate won't increase. "Guaranteed!" Well I used one of these checks back in March. When I got my first billing statement, the interest rate was four times what they said it would be in the letter with the checks. I called the credit card company several times, and they won't give me a straight answer why the interest rate is much higher. Is there something that I can do? - W.R., via e-mail
DEAR W.R.: Seldom are these checks that you receive from credit card companies a good deal. Often, there's a minimum fee of 3 percent or 4 percent just for writing the check. I put them into the ishredder when I receive them. Find out what it's going to take to get you out, and then, if you want to fight with the company, do so.
SEND QUESTIONS to: Smart Money, P.O. Box 2095, Elfers, FL 34680 or bruce@bruce williams.com.
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