Reader Bruce applied for a US Airways Visa card, issued by Bank of America, looking to get the promised 25,000-mile bonus. He got a card that only offered 5,000 bonus miles instead, and he’s not happy.
U.S. Airways is handing out Bank Of America credit card applications that promise 25,000 bonus miles after first purchase, with a $50 annual fee. The problem is that in fact they switch the card when it issued to a lower level card which pays only 5,000 bonus miles after first purchase. Bank of America refuses to refund their fifty dollar annual fee if you use the card one time. But you don’t know about the switch until after the first purchase. This is nothing more then a bait and switch scam.
[...]
I talked to the bank a second time, and was told the following: You did not qualify for a “signature card” so we issued a lower ranked card which only gave you five thousand miles.
[...]
I escalated my complaint about the switch as far as I could go, and was basically told, “Tough.” I have had no response from U.S. Airways as to the problem.I might also add, that the airline attendants push these applications very hard during the flight saying that they need the fifty dollars they get in order to live. U.S. Air does not pay them enough according to their statements on the flight.
Obviously, I can’t speak to the credit decision, but the bank should have been more forthcoming about the alternate card option. The 5000-mile card is offered alongside the 25000-mile card on the US Airways website, but nothing in the literature suggests that customers will be automatically downgraded if they fail to qualify for the Signature card. Maybe the downgrade was in the fine print of the paper application handed out on board, but I can’t find it online. That needs to be clarified, or the bank and the airline will find a lot more angry customers like Bruce.
Bruce also mentions that, when he received the card in the mail, he wasn’t actually told that the card he received wasn’t the one he applied for. The card featured the US Airways Dividend Miles logo, after all, so the confusion is understandable.
But one thing doesn’t check out here: The Signature card has a pretty steep $90 fee, not $50. Miscommunication? Misprint?
Bottom line: You need to watch the application literature like a hawk, both at the time of application and the time of card receipt. It’s sad, but we live in a “gotcha!” society, and you need to play lawyer before signing your name to anything that involves your finances.
Before you activate a new card and start using it, make sure that the card is actually the one you signed up for. If it’s not, you might politely decline. If you’re not sure, call the bank and double check.
Related:
- Reader mail: What kind of point-earning credit card is best?
RSS (FeedBurner)
Read with Amazon Kindle
Subscribe by E-mail
Follow on Twitter
January 23rd, 2008 at 1:27 pm
The bait and switch is bad enough. But if it’s true about the flight attendants “saying that they need the fifty dollars they get in order to live,” well, then, I’m speechless.
A new low has been hit.
January 23rd, 2008 at 1:47 pm
I haven’t been on a US Airways flight in a while, but based on this story I fully expect a Starbucks-like tip jar at the exit door of their aircraft now.
January 23rd, 2008 at 4:33 pm
Well, taking a quick look at the website. I do notice that the 25,000 mile card looks different than the 5,000 mile card. Usually, a letter is attached with the card telling you that you were not approved for the card that you have applied for, but instead qualified for the level below what you have.
I’ve gotten that letter, but I have never dealt with a BoA credit card either. Although, I do think that there is an element of bait and switch happening here, it really is on the consumer to pay close attention to any credit line or credit card that they are activating. In essence, doing so is like receiving a loan… and not reading the Terms and Conditions upon activation is not considered an acceptable excuse.
If he never received this letter, he might have the case. If I were him, I would press this with US Airways, not the bank, they may be willing to come to some kind of mileage compensation compromise. The bank is not likely to deal in miles.
January 23rd, 2008 at 7:57 pm
I got a US Air card a couple of years ago, with 20 or 25K miles (can’t remember). The first 2 years were “no annual fee” and after those 2 years were up I called and canceled, saying I no longer wished to have a card with an annual fee. They conveniently switched me to a no-fee card (earning fewer miles). I’ve since tried several times to get a US Air frequent flyer ticket, with absolutely no success. I’d say WRITE a letter to US Air and B of A customer service (not just a call), ask for a refund, ditch the card, and cut your losses. The only card which I have (of many) with an annual fee is an Alaska Air Visa — it gave an excellent bonus, and I’ve always had success with using frequent flyer miles on Alaska.
January 24th, 2008 at 8:39 am
when you get ur US airways CC you know what kind it is so if your credit score sucks and u didn’t get the right card for the bonus its def the cardholders fault for not payin attn. noobs
January 24th, 2008 at 1:09 pm
Would this person rather receive no card? Because that’s the only alternative.
January 27th, 2008 at 1:33 am
First of all, there is nothing wrong with my credit score. In fact,it is above average for the average American. That just doesn’t fly. Second, the flight attendants begged for the passengers to take out these cards “so that they could make enough to live on.” They complained that the airlines was not paying enough for them to live on and they needed the fify bucks they got when a card was approved. That was the fee for the 25K card, and guess what? I was charged the Fifty dollar fee. This IS in fact bait and switch, and I have enough years in law enforcement, but state and Federal, to know a scam when I become victim to one. My only fault is that I believed what I was told by the flight attendants.
January 28th, 2008 at 3:52 pm
so instead of reading the fine print u believed and took a cc deal from a flight attendant who pushes the card for a job. its called doing your own due diligence n00b
read ur card before u activate it…..
and ur credit score must suck if you didn’t get the better card
January 28th, 2008 at 4:27 pm
WOW, what a truely ignorant jerk you are. My credit score is 721, what’s yours?? I’m positive it is in the 500′s. Try and warn people, and this is the crap you get. Never again.
January 28th, 2008 at 4:33 pm
J, start acting civil.
January 28th, 2008 at 4:36 pm
Bruce, thanks for sharing your story, and please don’t let j’s comments stop you from sharing future concerns.
January 29th, 2008 at 10:52 am
It is typical for banks to issue lower level cards if you don’t qualify for a top tier one (but given your stated credit score, it is beyond me).
I’m not sure if you have a BofA card already, but that could be the issue for your denial. BofA issues you credit on a portfolio basis (so you can have 20k worth of credit over as many BofA credit cards they’ll give you). The issue is, though, that the signature card (I’m a holder of a plain visa signature – I was originally denied and give a worldpoints card or something – and a USAirway DM sig) has a minimum credit limit attached to it that won’t let you get the card.
FYI, the $90 fee is for the signature card (25k miles) and the $50 is for the US Visa (5k).
It’s a tough situation, but you may be in luck if you call BofA and try to get a different agent.
February 18th, 2008 at 12:12 pm
Don’t know what the big deal is. I called BoA last year to inquire about the signature card after I came back from a trip to Europe. I called the bank to see which card ($50 with 5K milesor $90 with 25k miles). I was looking for something a little quicker to earn miles and obtain other benefits. Yes–I had to do a little homework to make sure I understood the difference between the two and make sure I was willing to by the annual membership fee. When I spoke to BoA–they said I was eligible for either one (based on the info I gave them). I decided to go for the $90 membership. I got my card and before I new it–had my miles. I agree that it is difficult to use you mileage to obtain a free ticket that why I’ve never done it. I use my miles to either cut the cost of the ticket or upgrade to a different class. Up to now, I haven’t had any problems. The only problem I’ve had is to get BoA to hurry up and send me a new Visa card with my picture on it. In the end I wonder how many people actually read the (very well hidden) fine print before making the jump. I’ve heard a lot of different comments on these programs but one thing is certain–it will become harder to redeem anything in the future. The airlines are not in the business of maker your life easy.
September 23rd, 2008 at 9:42 pm
I am still getting My Points mail in my spam mail.