[ifeghali]

My Complaint with US Airways Case #: 1227819

I am complaining about US Airways not fulfilling its written promise to give me two airline tickets a year as a part of its credit card program.


Facts:
· On 10/29/2007, while on a US flight, I applied for a US Airways Visa card, with the written promise by US Airways for an “Annual certificate good for two guests.” US Airways sent me the Visa Card that was issue by Bank of America.
· Subsequently, US Airways replaced Bank of America’s Visa card with Barclay’s Bank of Delaware Master Card. The certificate of December 2008 never arrived.
· I contacted US Airways at Tel #: 866-203-9560 multiple times to resolve this issue. I had conversations with representatives on at least 6/23/09, 7/27/09, and 8/28/09. After many hours of wasted time I was promised that the certificate would me mailed to me shortly. That was a false promise.
· US Airways blames Bank of America. Bank of America closed the account and refuses to discuss the matter. My contract was with US Airways, not with a bank. In fact, US Airways changed banks without consulting me.
· My efforts with US Airways representatives reached a dead end. AND I AM SCREWED.
· My advice: DO NOT ACCEPT US AIRWAYS CREDIT CARDS. THEY’RE A RIP OFF!

[PHXFlyer]

Originally Posted by ifeghali

My Complaint with US Airways Case #: 1227819

I am complaining about US Airways not fulfilling its written promise to give me two airline tickets a year as a part of its credit card program.


Facts:
· On 10/29/2007, while on a US flight, I applied for a US Airways Visa card, with the written promise by US Airways for an “Annual certificate good for two guests.” US Airways sent me the Visa Card that was issue by Bank of America.
· Subsequently, US Airways replaced Bank of America’s Visa card with Barclay’s Bank of Delaware Master Card. The certificate of December 2008 never arrived.
· I contacted US Airways at Tel #: 866-203-9560 multiple times to resolve this issue. I had conversations with representatives on at least 6/23/09, 7/27/09, and 8/28/09. After many hours of wasted time I was promised that the certificate would me mailed to me shortly. That was a false promise.
· US Airways blames Bank of America. Bank of America closed the account and refuses to discuss the matter. My contract was with US Airways, not with a bank. In fact, US Airways changed banks without consulting me.
· My efforts with US Airways representatives reached a dead end. AND I AM SCREWED.
· My advice: DO NOT ACCEPT US AIRWAYS CREDIT CARDS. THEY’RE A RIP OFF!

This is where you are very wrong and why this "complaint" doesn't even belong in this forum.

You were issued a credit card. Credit cards are issued by banks. US Airways is not a bank nor do they own a bank. Your credit card was issued by Bank of America and all of the terms and conditions for that card, including benefits/bonuses on US Airways, were set by Bank of America and not US Airways. The bank buys the miles from US Airways which are an incentive to use the card. The bank also issues the companion vouchers which are redeemable on US Airways for travel.

Companies who have co-branded credit and/or cards can and do change the bank with which they have those cards issued. Continental changed to Chase a few years ago and Delta now goes with American Express. The issuing bank for a credit card can also change if the bank undergoes a merger.

I'm not sure where you're getting this "annual certificate good for two guests" from, but I do know (because I also have a B of A issued airline co-branded Visa and was aware of both cards) that the US Airways card came with one $99 companion voucher annually (buy one ticket, get the second for $99 plus taxes/fees), a signup bonus of anywhere from 15K to 25K miles (depending on when you first signed up for the card), and 5K bonus miles annually every year you renewed the card.

My B of A card (Alaska Airlines) recently informed me that they were no longer giving the anniversary miles. Bummer, but was the bank's decision and not Alaska Airlines'. They also raised it from a $50 companion certificate to $99 same as US Airways. Again, the bank's doing not the airlines. You can spend all day on the phone with US Airways and they'll tell you each and every time your gripe is with the bank and not them. Because it is.

Did you ever receive a replacement card from Barclays?

[jimworcs]

Now this would benefit from someone with an understanding of consumer law, because I have some doubts about your analysis PHX. It is far from clear that a consumer, signing up on a US Air flight, for a US Air branded card, offering US Airways flights as an incentive, does not have a contract relationship with US Airways.

Any lawyers got a comment on this?

[PHXFlyer]

they only have a contract with us airways once they redeem the companion voucher for travel. namelt the contract of carriage. anything else is between the cardholder and the bank. next thing you know we'll be hearing a complaint that the airline is responsible for raising their interest rate or lowering their credit limit!

[airhead]

I am a law student and I will give my best answer. Please correct me if I am wrong.

Bank of America filed for Chapter 11 bankruptcy which absolves it from any contractual relationships. You can thank the U.S. Government for this one. Perhaps you can complain to them.

[PHXFlyer]

Originally Posted by airhead

Bank of America filed for Chapter 11 bankruptcy...

No, they did not.

[airhead]

Thanks for the correction. I did some research to understand why I thought that and found this interesting short article. Maybe the Fox news makes it seem like it filed...lol

http://curiouscapitalist.blogs.time....-fact-checker/

[PHXFlyer]

I don't think true banks can declare bankruptcy. When a bank becomes insolvent it is either consumed by another bank who assumes all of it's debt or is taken over by the feds.

[airhead]

Banks do not have to consult with you if they shift obligations to another bank. Why did Bank of America "close" your account? A bank usually will have a valid reason to close an account without the account holder's permission. They want accounts open but if their is something going on that may hurt them then they can close the account without permission.

I am sure the terms of certificate will state something like: account must be in good standing during 1 year from opening account. Any delinquencies will void the issue of such certificate.

Were you late on any payments? Maybe Barclay’s Bank of Delaware has your certificate. Have you tried to contact them? I would think that Bank of America's obligations would rightfully transfer to Barclay’s Bank of Delaware.

[Butch Cassidy Slept Here]

Airhead wrote:

A bank usually will have a valid reason to close an account without the account holder's permission.

I don't think so. The media has run reports of people, who have a good credit history, getting their cards cancelled for using it at the "wrong" merchant. Specifically, if you use your card at a merchant where a lot of credit card defaulters shop you then become a candidate for cancellation. Other examples: Have marital problems? Don't put the counseling fee on your credit card---unless you want the card cancelled. Don't charge anything at an establishment that is more of a bar than a restaurant.

As to the idea of (US-based) airline branded credit cards in general: Anyone who gets one of these deserves whatever they get! A holder of this type of card is simply a participant in the fraud that is most airline frequent flier programs. Southwest, and possibly Alaska, may be exceptions.

[airhead]

Like I said and will be more than happy to say it again, "A bank usually will have a valid reason to close an account without the account holder's permission." What is the problem? If a bank is held liable for fraudulent activities on a card, then I think the bank has the right to close the account.

ifeghali has not explained why the account was closed so none of us know. I can tell you with certainty if he was late on a payment or 2 and made a large charge, then the account is subject to close. If the account was closed because it was transferred to another bank then he will receive notice and given a grace period to cancel.

If my credit card cancels me for shopping somewhere they don't want me to then they loose a customer who pays his bill. They loose the merchant fees from the transactions I make. How is that my problem? I will get another card from a bank who will be more than happy to have me as a customer. If I have bad credit, then I guess I am in trouble but then I wouldn't be using credit cards if I wasn't responsible. If the media wants to run a story on me because I made a purchase from a merchant who probably did not pay THEIR bill and then had my CC canceled as a result then I would say it is a good day for the world because that is a very boring story and I am glad nobody died.

[PHXFlyer]

Originally Posted by Butch Cassidy Slept Here

As to the idea of (US-based) airline branded credit cards in general: Anyone who gets one of these deserves whatever they get! A holder of this type of card is simply a participant in the fraud that is most airline frequent flier programs. Southwest, and possibly Alaska, may be exceptions.

Why single out Southwest and Alaska? They don't run their frequent flier program much differently than any other US based airline. Although there are no "blackout dates" they still manipulate award inventory. Of course you can get any seat on any flight but for twice the miles but this doesn't differ greatly from the others. Southwest has no redemption partners but Alaska charges a fee to use your Alaska miles for a partner award. Alaska allows a 24 hour window to change or cancel an award without penalty but then charges a $75 or $100 fee to change the itinerary or re-deposit the miles. The one thing I do like about Alaska's program is that they don't hit you with the "close-in" booking fee like most do. I could get an award trip for tomorrow and all I'd pay are the segment taxes and the partner fee if it's not all on Alaska or Horizon operated flights.

[PHXFlyer]

Originally Posted by airhead

ifeghali has not explained why the account was closed so none of us know. I can tell you with certainty if he was late on a payment or 2 and made a large charge, then the account is subject to close. If the account was closed because it was transferred to another bank then he will receive notice and given a grace period to cancel.

It was closed because US Airways chose to change from B of A to Barclays. Of course Barclays is not under any obligation to issue every single former B of A account holder a new card. I'm sure if an account was not in good standing with B of A or the cardholder did not meet Barclays' minimum FICO requirement then a new card would not have been issued.