Question
I'm having a problem with a new credit card account with US Bank for a Northwest Worldperks VISA Platinum Card with a $55 annual fee. I applied for the card on the web site, expecting no annual fee the first year.
When the card came in the mail, some of the accompanying (confusing!) paperwork made me think that the annual fee might be charged the first year, so prior to calling to activate the card, I called the customer service number and spoke with a rep there, who assured me that the fee was not charged the first year, but would be charged after one year.
I then activated the card and began using it. Two weeks after activating the card, they charged the annual fee. I contacted customer service (via email) and was told:
"When you applied for the card on the NWA web site, you received an offer for 10,000 enrollment bonus miles. This offer did not have the annual fee waiver for the first year. The no annual fee for the 1st year offer has considerably less sign up miles."
I responded to this saying that I had spoken with an agent prior to activating the card and had been told that the annual fee would not be charged the first year, only to get:
I apologize if you were given mis-information. However, the fact remains
that your account has an annual fee billed the first year since you are
receiving 10,000 miles.
So now I'm not sure what to do. While I might have signed up for the card knowing
that I would pay a $55 fee right away (though there were better offers available), I'm really angry with usbank and feel like I've been misled by the customer service agent's "misinformation."
The only documentation I have of my phone conversation with the customer service agent is a handwritten annotation "Lee - No charge right away" on the "important information" sheet mailed with the card.
Any suggestions about how to deal with this? Someone to contact at usbank? at Northwest? I'd heard horror stories about dealing with usbank, but I mostly fly NW and figured this was the best card for me. I never figured it would be this bad.
Thanks,
Ethan
[Added 2004-02-04]
See final post in this thread for happy ending.
[This message has been edited by ethanb (edited Feb 04, 2004).]
Answer
The documentation you need is a copy of the web offer you responded to. Without it you are S.O.L.
Answer
I've read through the web offer several times since then and still can't decide what it means:
Web offer (http://www.worldperksvisa.com/cgi_w/cfm/wpv/apply.cfm?ProductType=R&PromoID=www.worldperksvisa.com&MorI=)
Terms and Conditions (https://www2.usbank.com/cgi_w2/cfm/wpv/terms_conditions.cfm?CFID=28989&CFTOKEN=88518214)
Some relevant language:
"WorldPerks® Visa Platinum
A minimum annual income of $15,000 is required. Credit line up to $7,500. The annual fee is $55."
"One-Time Enrollment Bonus Miles will be awarded when you pay your Annual Fee or use the Card for purchases, whichever comes first."
"Annual Fees Visa Platinum Card $55.00
Visa Signature Card $90.00"
I don't see any definition of whether the annual fee is paid at the beginning or end of a year. Is that just implied?
[This message has been edited by ethanb (edited Dec 18, 2003).]
Answer
I applied for
the card on the web site, expecting no annual fee the first year.
What in this offer could possible lead you to believe that the annual fee was waived for the first year?
Answer
I got mine, 10k miles and no annual fee for a year, in July I believe by calling some 800 number and saying a special extension. Found in Miles Buzz, but almost certain this deal expired already.
Answer
Since you already got pegged with the fee, I would wait for your 10k miles to post in your WP account. Call up to cancel the card, whey they ask why, be really nice and mention the annual fee. CAll a few time to try. If they will never budge, cancel and ask for a prorated refund of part of the annual, 9 months or whatever
Answer
UpgradeMe writes:
What in this offer could possible lead you to believe that the annual fee was waived for the first year?
It the first card I'd ever applied for with an annual fee and I had been under the impression that nearly all cards waived the annual fee the first year (e.g. that the annual fee was paid at the end of a year, rather than the beginning). The "one time enrollment bonus miles will be awarded when you pay your annual fee or use the card for purchases, whichever comes first" reinforced that idea to me. Why would they mention "whichever comes first" if the annual fee would be charged right away?
In any case, I didn't give it any thought when I signed up on the web. I got a little concerned reading the discussion about Make a Mile, so when my card came, I called customer service before activating it. I spoke with a customer service agent and specifically asked whether the annual fee would be charged at the beginning of the first year and was told that it would not. Even if I *should* have assumed the fee would be charged immediately based on the appliation, I would think they should still be responsible for what their agent says.
Alcibaides writes:
Since you already got pegged with the fee, I would wait for your 10k miles to post in your WP account. Call up to cancel the card, whey they ask why, be really nice and mention the annual fee. Call a few time to try. If they will never budge, cancel and ask for a prorated refund of part of the annual, 9 months or whatever
That's an interesting suggestion. I'm so frustrated with usbank at this point that I'll probably cancel the card over this unless they can make it right with me. I was planning on keeping it for a year to get the most value out of the $55 sunk cost and then switching to another card. Has anyone had success canceling a card and getting the annual fee prorated? Will they try to take back the 10,000 miles?
Thanks for all the suggestions,
Ethan
Answer
I'm not sure what you value 10,000 miles at, but if you value it 1 to 2 cents per mile (most people take 2 cents), it is still a good deal.
For example, if you value it at 1.5c/mile, then 10,000 miles would equal $150 value.
I would just wait until the miles post... Once they do, try to get them to waive/reduce the fee. If they won't, just keep the card for the year then cancel.
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i love usbank wp card I HAVE LOGGED OVER 1.5 MILLION DOLLARS IN 5 YEARS ON THAT CARD ALONE !!! ..thats alot of first class upgrades!!!
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USBank Visa is only worth it if you pay your statement balance. Have both Platinum and Business NW WP Visa Cards. The fees are discounted for holding more than one account. The miles add up huge and the only time the USBank cards are a downer is when you carry a balance, the APR is high and negates the benefits of the miles earned. But if you carry a balance and you're used to finance charges, then earning miles is only worth it if you earn more than 10,000 miles/yr, otherwise the fees could go toward an outright purchase of a ticket.
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I'm the original poster in this thread. I sent a letter to USBank corporate headquarters about this situation. I received a response on Jan 26 offering to refund the fee. I am satisfied.