My account got shut down after getting the sign-up bonus?
Jun 18, 2015, 10:17 pm
#76
Join Date: Sep 2013
Location: SMF
Posts: 1,251
May be I should make it clearer - what I meant is, those AS miles were not from the inventory BofA already paid for, rather were created when needed per the said arrangement. That means those AS credit card bonuses miles are never accounted for before they are awarded. That just does not fit the most other airlines models, nor the GAAP.
When AS "creates" miles a selling expense is debited and a liability account is credited. We know that AS values their miles on their books at a value of $.005 each ($730 million liability relating to miles/146 billion miles outstanding). That means that the following entry would occur when a signup bonus for 25,000 miles is awarded without a member's account.
DR: Selling Expense $125
CR: Liability $125
The value of the miles is not calculated as the average revenue cost of redeemed miles but rather is a significant accounting estimate that should approximate the cost to the AS of a customer redeeming the miles. Suppose that BoA does indeed purchase the miles for $.004 (assumption, not actual value), the following entry would occur:
DR: Cash or Accounts Receivable $100
DR: Deferred Revenue $100
At the time of award redemption (when the flights are actually flown) or when the miles expire the entry would then be
DR: Passenger Revenue $100
DR: Deferred Revenue $100
I should mention here that AS accounts for sold Mileage Plan miles usings two methods: the relative selling price method comprising 94% of sold miles, and the residual accounting method comprising the remaining 6%. The example above would only relate to the relative selling price method (if I understand ASU 2009-13 correctly) and this is the method AS would use to account for miles recorded as part of a credit card signup bonus.
Also, HouFly mentioned that these values are "meaningless/random" and can be swept to the side. I don't think that a $730 million liability account can be swept to the side when it is disclosed in their 10k SEC filing
Additionally, because the liability is considered to be a Significant Accounting Estimate it is subjected to additional scrutiny by the external auditors who want to cover their backs in case of a PCAOB inspection.So to summarize, as you see above, it all depends on whether or not BoA is paying AS for the miles that are being awarded through credit card bonuses. It is likely that AS is indeed taking a loss and would therefore have reason for concern at a 100,000 point bonus. Also, it is unlikely that BoA is not paying anything for the miles being awarded to new cardholders. AS recorded $295 million in Mileage Plan revenue from sources outside of passenger flights (i.e. credit card bonuses, Rocketmiles, SPG transfers, etc.) compared to $246 million in Mileage Plan revenue from passenger flights. Based on the size of those accounts I doubt AS could have reached that having charged nothing for all miles awarded as a result of credit card bonuses.
Jun 19, 2015, 1:24 am
#77
Join Date: Apr 2012
Posts: 232
once again, AS is not "gifting" any miles to BofA... BofA never has any possession of AS miles. bonuses, and earned miles are directly awarded by AS to their FFP members once they get a monthly statement from BofA.... you could argue AS is gifting bonuses to its card holders, but once again thats called a sign up bonus. it just works differently compared to other partnerships.
AS may have $295 million in Mileage Plan revenue from sources outside of passenger flights -- that includes selling miles directly and you should be aware how aggressively they market and promote these sales. and once again also by collecting AFs, IC fees, and every other kind of fee on their affinity card acc to BofA reps goes directly to AS.
p.s. once that is collected every month, is when they update your mileage balance if you earn thru CC spending.
that is why AS is very keen on you paying your AFs and keeping the card long term (where they hope to recoup their initial bonus investment) rather than you opening and closing constantly which churners might do with other banks. this is why BofA doesnt offer ANY retention bonuses at all on this product. not because they dont wanna keep you around, but cause it is not really their product to retain you for. i.e. they dont have miles to give or any leeway with AF which once again go directly to AS, so they wont take the loss on that.
what I mean by swept aside is that the value even as a liability doesnt affect their day to day operation. it can be put aside for all intents and purposes. as if it was a separate entity (think of how aeroplan works in relation to air canada) and once agian they could decide to get rid of all of mileageplan. would they be $730M richer? no because this entity doesnt really exist/is not tangible. it has to be thought of us something totally out of thin air and a pure profit center... lastly, let me also clarify why a valuation of $.005 is meaningless even as part of their SEC filing. say I have $100 million in monopoly money. I assign them, solely at my own discretion, a value of $10 million USD. does that make my monopoly notes worth $10M USD to anyone else, esp when this currency cant be used anywhere, nor can it be owned by anyone else?
thats the issue with FFP miles, the program owns them at all times. AS may have come up with this valuation based on how their members redeem these miles and taking the avg costs of all awards (as if they woulda been sold for cash at that given moment) ... acc to one chart that was posted: a vast majority of AS miles are redeemed on AS metal, followed by AA and DL. intl partners aka long haul awards make up something like 3% of their total redemptions. I'd wager J/F intl long-hauls would be an even smaller subset of that. simply due to the fact that most folks dont have a ton of miles to splurge on anything besides Y. this is also why its AS is more suspicious these days when a 100 or 150k miles suddenly appear in your acct. whether thru card bonuses or SPG transfer, acc to all the reports we see on FT.
anyways, so overall based on previous trends that AS has data for, perhaps 1 AS mile is worth $.005 to create and be redeemed. or maybe thats a random, round valuation as a placeholder that AS came up with cause regulators require something, anything to be put down for the books.
but it can be changed at any time. it can be devalued at any time. even more dramatically than how any given central bank devalues currencies via inflation programs. for ex. the feds quantitative easing program after the great recession. difference being atleast you "own" your money at all times, even if its digital, in a bank account and doesnt physically exist.
AS may have $295 million in Mileage Plan revenue from sources outside of passenger flights -- that includes selling miles directly and you should be aware how aggressively they market and promote these sales. and once again also by collecting AFs, IC fees, and every other kind of fee on their affinity card acc to BofA reps goes directly to AS.
p.s. once that is collected every month, is when they update your mileage balance if you earn thru CC spending.
that is why AS is very keen on you paying your AFs and keeping the card long term (where they hope to recoup their initial bonus investment) rather than you opening and closing constantly which churners might do with other banks. this is why BofA doesnt offer ANY retention bonuses at all on this product. not because they dont wanna keep you around, but cause it is not really their product to retain you for. i.e. they dont have miles to give or any leeway with AF which once again go directly to AS, so they wont take the loss on that.
what I mean by swept aside is that the value even as a liability doesnt affect their day to day operation. it can be put aside for all intents and purposes. as if it was a separate entity (think of how aeroplan works in relation to air canada) and once agian they could decide to get rid of all of mileageplan. would they be $730M richer? no because this entity doesnt really exist/is not tangible. it has to be thought of us something totally out of thin air and a pure profit center... lastly, let me also clarify why a valuation of $.005 is meaningless even as part of their SEC filing. say I have $100 million in monopoly money. I assign them, solely at my own discretion, a value of $10 million USD. does that make my monopoly notes worth $10M USD to anyone else, esp when this currency cant be used anywhere, nor can it be owned by anyone else?
thats the issue with FFP miles, the program owns them at all times. AS may have come up with this valuation based on how their members redeem these miles and taking the avg costs of all awards (as if they woulda been sold for cash at that given moment) ... acc to one chart that was posted: a vast majority of AS miles are redeemed on AS metal, followed by AA and DL. intl partners aka long haul awards make up something like 3% of their total redemptions. I'd wager J/F intl long-hauls would be an even smaller subset of that. simply due to the fact that most folks dont have a ton of miles to splurge on anything besides Y. this is also why its AS is more suspicious these days when a 100 or 150k miles suddenly appear in your acct. whether thru card bonuses or SPG transfer, acc to all the reports we see on FT.
anyways, so overall based on previous trends that AS has data for, perhaps 1 AS mile is worth $.005 to create and be redeemed. or maybe thats a random, round valuation as a placeholder that AS came up with cause regulators require something, anything to be put down for the books.
but it can be changed at any time. it can be devalued at any time. even more dramatically than how any given central bank devalues currencies via inflation programs. for ex. the feds quantitative easing program after the great recession. difference being atleast you "own" your money at all times, even if its digital, in a bank account and doesnt physically exist.
Last edited by HouFly; Jun 19, 2015 at 1:38 am
Jun 19, 2015, 9:24 am
#78
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,755
once again, AS is not "gifting" any miles to BofA... BofA never has any possession of AS miles. bonuses, and earned miles are directly awarded by AS to their FFP members once they get a monthly statement from BofA.... you could argue AS is gifting bonuses to its card holders, but once again thats called a sign up bonus. it just works differently compared to other partnerships.
AS may have $295 million in Mileage Plan revenue from sources outside of passenger flights -- that includes selling miles directly and you should be aware how aggressively they market and promote these sales. and once again also by collecting AFs, IC fees, and every other kind of fee on their affinity card acc to BofA reps goes directly to AS.
p.s. once that is collected every month, is when they update your mileage balance if you earn thru CC spending.
that is why AS is very keen on you paying your AFs and keeping the card long term (where they hope to recoup their initial bonus investment) rather than you opening and closing constantly which churners might do with other banks. this is why BofA doesnt offer ANY retention bonuses at all on this product. not because they dont wanna keep you around, but cause it is not really their product to retain you for. i.e. they dont have miles to give or any leeway with AF which once again go directly to AS, so they wont take the loss on that.
what I mean by swept aside is that the value even as a liability doesnt affect their day to day operation. it can be put aside for all intents and purposes. as if it was a separate entity (think of how aeroplan works in relation to air canada) and once agian they could decide to get rid of all of mileageplan. would they be $730M richer? no because this entity doesnt really exist/is not tangible. it has to be thought of us something totally out of thin air and a pure profit center... lastly, let me also clarify why a valuation of $.005 is meaningless even as part of their SEC filing. say I have $100 million in monopoly money. I assign them, solely at my own discretion, a value of $10 million USD. does that make my monopoly notes worth $10M USD to anyone else, esp when this currency cant be used anywhere, nor can it be owned by anyone else?
thats the issue with FFP miles, the program owns them at all times. AS may have come up with this valuation based on how their members redeem these miles and taking the avg costs of all awards (as if they woulda been sold for cash at that given moment) ... acc to one chart that was posted: a vast majority of AS miles are redeemed on AS metal, followed by AA and DL. intl partners aka long haul awards make up something like 3% of their total redemptions. I'd wager J/F intl long-hauls would be an even smaller subset of that. simply due to the fact that most folks dont have a ton of miles to splurge on anything besides Y. this is also why its AS is more suspicious these days when a 100 or 150k miles suddenly appear in your acct. whether thru card bonuses or SPG transfer, acc to all the reports we see on FT.
anyways, so overall based on previous trends that AS has data for, perhaps 1 AS mile is worth $.005 to create and be redeemed. or maybe thats a random, round valuation as a placeholder that AS came up with cause regulators require something, anything to be put down for the books.
but it can be changed at any time. it can be devalued at any time. even more dramatically than how any given central bank devalues currencies via inflation programs. for ex. the feds quantitative easing program after the great recession. difference being atleast you "own" your money at all times, even if its digital, in a bank account and doesnt physically exist.
AS may have $295 million in Mileage Plan revenue from sources outside of passenger flights -- that includes selling miles directly and you should be aware how aggressively they market and promote these sales. and once again also by collecting AFs, IC fees, and every other kind of fee on their affinity card acc to BofA reps goes directly to AS.
p.s. once that is collected every month, is when they update your mileage balance if you earn thru CC spending.
that is why AS is very keen on you paying your AFs and keeping the card long term (where they hope to recoup their initial bonus investment) rather than you opening and closing constantly which churners might do with other banks. this is why BofA doesnt offer ANY retention bonuses at all on this product. not because they dont wanna keep you around, but cause it is not really their product to retain you for. i.e. they dont have miles to give or any leeway with AF which once again go directly to AS, so they wont take the loss on that.
what I mean by swept aside is that the value even as a liability doesnt affect their day to day operation. it can be put aside for all intents and purposes. as if it was a separate entity (think of how aeroplan works in relation to air canada) and once agian they could decide to get rid of all of mileageplan. would they be $730M richer? no because this entity doesnt really exist/is not tangible. it has to be thought of us something totally out of thin air and a pure profit center... lastly, let me also clarify why a valuation of $.005 is meaningless even as part of their SEC filing. say I have $100 million in monopoly money. I assign them, solely at my own discretion, a value of $10 million USD. does that make my monopoly notes worth $10M USD to anyone else, esp when this currency cant be used anywhere, nor can it be owned by anyone else?
thats the issue with FFP miles, the program owns them at all times. AS may have come up with this valuation based on how their members redeem these miles and taking the avg costs of all awards (as if they woulda been sold for cash at that given moment) ... acc to one chart that was posted: a vast majority of AS miles are redeemed on AS metal, followed by AA and DL. intl partners aka long haul awards make up something like 3% of their total redemptions. I'd wager J/F intl long-hauls would be an even smaller subset of that. simply due to the fact that most folks dont have a ton of miles to splurge on anything besides Y. this is also why its AS is more suspicious these days when a 100 or 150k miles suddenly appear in your acct. whether thru card bonuses or SPG transfer, acc to all the reports we see on FT.
anyways, so overall based on previous trends that AS has data for, perhaps 1 AS mile is worth $.005 to create and be redeemed. or maybe thats a random, round valuation as a placeholder that AS came up with cause regulators require something, anything to be put down for the books.
but it can be changed at any time. it can be devalued at any time. even more dramatically than how any given central bank devalues currencies via inflation programs. for ex. the feds quantitative easing program after the great recession. difference being atleast you "own" your money at all times, even if its digital, in a bank account and doesnt physically exist.
<<AFs, IC fees, and every other kind of fee on their affinity card acc to BofA reps goes directly to AS.
p.s. once that is collected every month, is when they update your mileage balance if you earn thru CC spending.>>
I would venture to say most people would never know about this until now. I am sure there are still many who are skeptical on this, no doubt. But it does explain why BofA would approve multiple cards - not just the 4x here but twice or thrice of that if you read some of the comments left at MMS bragging and the dedicated threads in Dansdeal forum... Astonishing to say the least... Never a bank would approve credit cards in such manner UNLESS the bank itself is not on the hook of the bonuses / rewards. (BofA already is satisfied by the creditworthiness of the applicants when their credit specialist manually approved the multiple cards.)
The comment section is quite an eye opener
http://millionmilesecrets.com/2015/0...y/#more-124775
The AS email quoted upthread is from this thread
http://forums.dansdeals.com/index.php?topic=52946.0
Related long-running thread
http://forums.dansdeals.com/index.php?topic=35778.0
Astonishing numbers of multiple applications are posted.
Jun 19, 2015, 9:42 am
#79
A FlyerTalk Posting Legend
Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
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Posts: 100,399
Astonishing number of multiple AS credit card applications, with resulting award of miles, but few that we know are being shut down?
Jun 19, 2015, 10:42 am
#80
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,755
Have you ventured to the Dan's Deal site to read some?
This little card has been chugging along for 2, 3 years without getting much attention thanks to the low sign up bonus. Then here came the Seminar and the fishing trip by the bloggers - now all hell broke loose.
Jun 19, 2015, 12:20 pm
#81
Join Date: Sep 2013
Location: SMF
Posts: 1,251
once again, AS is not "gifting" any miles to BofA... BofA never has any possession of AS miles. bonuses, and earned miles are directly awarded by AS to their FFP members once they get a monthly statement from BofA.... you could argue AS is gifting bonuses to its card holders, but once again thats called a sign up bonus. it just works differently compared to other partnerships.
what I mean by swept aside is that the value even as a liability doesnt affect their day to day operation. it can be put aside for all intents and purposes. as if it was a separate entity (think of how aeroplan works in relation to air canada) and once agian they could decide to get rid of all of mileageplan. would they be $730M richer? no because this entity doesnt really exist/is not tangible. it has to be thought of us something totally out of thin air and a pure profit center... lastly, let me also clarify why a valuation of $.005 is meaningless even as part of their SEC filing. say I have $100 million in monopoly money. I assign them, solely at my own discretion, a value of $10 million USD. does that make my monopoly notes worth $10M USD to anyone else, esp when this currency cant be used anywhere, nor can it be owned by anyone else?
I am not an expert in airline industry accounting. Everything I understand just comes from the AICPA's Audit and Accounting Guide for the Airline Industry but it sounds like you have a much better understanding than I do at how the agreements work between the banks and the airlines regarding their co-branded credit cards. The only thing I suppose I disagree with you on is the assumption that the airlines valuation of their frequent flier liability account is arbitrary or can be changed without reason. My experience would suggest that all valuations subject to significant management estimates and judgement are subject to more evaluation and critique than other more tangible accounts.
Jun 23, 2015, 9:03 am
#83
Join Date: Jan 2008
Location: Houston, US
Programs: BAEC, One Pass, AA Advantage,Enrich, Miles & More, Flying Blue
Posts: 44
I think this is mostly accurate, however without insider information it is impossible to state how much BoA is paying AS for the miles awarded through CC bonuses or if AS is indeed "gifting" them to BoA. I think it helps to understand the basic accounting for AS's Mileage Plan program to know what problems AS would have with a significant amount of sign-up bonuses.
When AS "creates" miles a selling expense is debited and a liability account is credited. We know that AS values their miles on their books at a value of $.005 each ($730 million liability relating to miles/146 billion miles outstanding). That means that the following entry would occur when a signup bonus for 25,000 miles is awarded without a member's account.
DR: Selling Expense $125
CR: Liability $125
The value of the miles is not calculated as the average revenue cost of redeemed miles but rather is a significant accounting estimate that should approximate the cost to the AS of a customer redeeming the miles. Suppose that BoA does indeed purchase the miles for $.004 (assumption, not actual value), the following entry would occur:
DR: Cash or Accounts Receivable $100
DR: Deferred Revenue $100
At the time of award redemption (when the flights are actually flown) or when the miles expire the entry would then be
DR: Passenger Revenue $100
DR: Deferred Revenue $100
I should mention here that AS accounts for sold Mileage Plan miles usings two methods: the relative selling price method comprising 94% of sold miles, and the residual accounting method comprising the remaining 6%. The example above would only relate to the relative selling price method (if I understand ASU 2009-13 correctly) and this is the method AS would use to account for miles recorded as part of a credit card signup bonus.
Also, HouFly mentioned that these values are "meaningless/random" and can be swept to the side. I don't think that a $730 million liability account can be swept to the side when it is disclosed in their 10k SEC filing Additionally, because the liability is considered to be a Significant Accounting Estimate it is subjected to additional scrutiny by the external auditors who want to cover their backs in case of a PCAOB inspection.
So to summarize, as you see above, it all depends on whether or not BoA is paying AS for the miles that are being awarded through credit card bonuses. It is likely that AS is indeed taking a loss and would therefore have reason for concern at a 100,000 point bonus. Also, it is unlikely that BoA is not paying anything for the miles being awarded to new cardholders. AS recorded $295 million in Mileage Plan revenue from sources outside of passenger flights (i.e. credit card bonuses, Rocketmiles, SPG transfers, etc.) compared to $246 million in Mileage Plan revenue from passenger flights. Based on the size of those accounts I doubt AS could have reached that having charged nothing for all miles awarded as a result of credit card bonuses.
When AS "creates" miles a selling expense is debited and a liability account is credited. We know that AS values their miles on their books at a value of $.005 each ($730 million liability relating to miles/146 billion miles outstanding). That means that the following entry would occur when a signup bonus for 25,000 miles is awarded without a member's account.
DR: Selling Expense $125
CR: Liability $125
The value of the miles is not calculated as the average revenue cost of redeemed miles but rather is a significant accounting estimate that should approximate the cost to the AS of a customer redeeming the miles. Suppose that BoA does indeed purchase the miles for $.004 (assumption, not actual value), the following entry would occur:
DR: Cash or Accounts Receivable $100
DR: Deferred Revenue $100
At the time of award redemption (when the flights are actually flown) or when the miles expire the entry would then be
DR: Passenger Revenue $100
DR: Deferred Revenue $100
I should mention here that AS accounts for sold Mileage Plan miles usings two methods: the relative selling price method comprising 94% of sold miles, and the residual accounting method comprising the remaining 6%. The example above would only relate to the relative selling price method (if I understand ASU 2009-13 correctly) and this is the method AS would use to account for miles recorded as part of a credit card signup bonus.
Also, HouFly mentioned that these values are "meaningless/random" and can be swept to the side. I don't think that a $730 million liability account can be swept to the side when it is disclosed in their 10k SEC filing
Additionally, because the liability is considered to be a Significant Accounting Estimate it is subjected to additional scrutiny by the external auditors who want to cover their backs in case of a PCAOB inspection.So to summarize, as you see above, it all depends on whether or not BoA is paying AS for the miles that are being awarded through credit card bonuses. It is likely that AS is indeed taking a loss and would therefore have reason for concern at a 100,000 point bonus. Also, it is unlikely that BoA is not paying anything for the miles being awarded to new cardholders. AS recorded $295 million in Mileage Plan revenue from sources outside of passenger flights (i.e. credit card bonuses, Rocketmiles, SPG transfers, etc.) compared to $246 million in Mileage Plan revenue from passenger flights. Based on the size of those accounts I doubt AS could have reached that having charged nothing for all miles awarded as a result of credit card bonuses.
sorry if i'm diverting a bit to the accounting part, but was curious on the example provided above, what happens to the $125 liability when the transaction/revenue is realised (ie miles redeemed/flight flown)? The Deffered revenue cancels out and moves to realised passenger revenue which result in a net loss of $25 to AS ($100 revenue - $125 expense) but what about the $125 liability. How is that cleared and what is the offset CR entry?
Jun 23, 2015, 10:02 pm
#85
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Jun 24, 2015, 9:01 am
#87
Suspended
Join Date: Nov 1999
Posts: 24,153
[QUOTE=BruceLeeWSN;24978630]
I am not sure why I got blamed here. I am a good customer to BOA and they are glad to approve my application. I have parked over 40,000 dollars in their checking account.
[QUOTE]
Sorry you arent a good customer simply by parking $40k in the checking acct.Unless its been there for months on end, but even then BoA doesnt make much on you as they need to kep more $$ on hand from a Demand acct(Checking) then a Savings acct
Now if you have a # of loans with them or home equity acct,IRAs and have a brokeage acct with them, then maybe you'll be a good customer. But simply getting GCs into MOs dep into checking and have it sit there till its time to pay off the CC, does not make you or me a good customer
I am not sure why I got blamed here. I am a good customer to BOA and they are glad to approve my application. I have parked over 40,000 dollars in their checking account.
[QUOTE]
Sorry you arent a good customer simply by parking $40k in the checking acct.Unless its been there for months on end, but even then BoA doesnt make much on you as they need to kep more $$ on hand from a Demand acct(Checking) then a Savings acct
Now if you have a # of loans with them or home equity acct,IRAs and have a brokeage acct with them, then maybe you'll be a good customer. But simply getting GCs into MOs dep into checking and have it sit there till its time to pay off the CC, does not make you or me a good customer
Jun 24, 2015, 2:34 pm
#88
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Join Date: Jul 2003
Location: Florida
Posts: 29,755
[QUOTE=craz;25020266][QUOTE=BruceLeeWSN;24978630]
I am not sure why I got blamed here. I am a good customer to BOA and they are glad to approve my application. I have parked over 40,000 dollars in their checking account.
Sorry you arent a good customer simply by parking $40k in the checking acct.Unless its been there for months on end, but even then BoA doesnt make much on you as they need to kep more $$ on hand from a Demand acct(Checking) then a Savings acct
Now if you have a # of loans with them or home equity acct,IRAs and have a brokeage acct with them, then maybe you'll be a good customer. But simply getting GCs into MOs dep into checking and have it sit there till its time to pay off the CC, does not make you or me a good customer
Doubt it matters per the posts in this thread
http://www.flyertalk.com/forum/manuf...wn-thread.html
Especially this post
http://www.flyertalk.com/forum/24963077-post231.html
<<My Merrill Edge IRA Rollover 100k+ was recently closed and given 30 days window to transfer as well, just transferred my 401k few months ago....really bizarre decision with no reason given.....my BOA CC's, Fido's and Biz/Personal checking accounts are still intact...for now...really pissed at BOA, because the only reason I went with them is to take advantage of the perks of their platinum honors rewards, and free trades!
I use the fido's accounts heavily for AGC but no MO deposits...ever.....so really can't figure that one out.>>
<<Also, I just got a 450k biz loan from them...which I haven't even started paying yet!....I hope they don't ask for their loan back lol...any one with similar situation with more insight about this?>>
So a 100K IRA in a Merrill Lynch brokerage account plus 450K biz loan (certainly more profitable than a mortgage) does not convince BofA not to close all his accounts. A direct contrast to what you proclaim that would be good for the bank. We also have no idea what the OP's $40K deposit is from and parked there for how long. People, stop speculation because none of us has any inside knowledge on how the banks / airlines make decision but we do know that more often than not, it is a very highhanded approach that often leaves the customers have no recourse to seek justice especially with the airlines as the FFPs are not regulated and they are not subject to similar government regulations as the banks.
There are good reasons why the CFPB is established. May be there is also a need to have similar agency or gives DOT the responsibility / power to regulate FFPs. Sadly with the recent Supreme Court decision, the airlines basically are give a green light to do whatever they want with their FFPs.
I am not sure why I got blamed here. I am a good customer to BOA and they are glad to approve my application. I have parked over 40,000 dollars in their checking account.
Sorry you arent a good customer simply by parking $40k in the checking acct.Unless its been there for months on end, but even then BoA doesnt make much on you as they need to kep more $$ on hand from a Demand acct(Checking) then a Savings acct
Now if you have a # of loans with them or home equity acct,IRAs and have a brokeage acct with them, then maybe you'll be a good customer. But simply getting GCs into MOs dep into checking and have it sit there till its time to pay off the CC, does not make you or me a good customer
http://www.flyertalk.com/forum/manuf...wn-thread.html
Especially this post
http://www.flyertalk.com/forum/24963077-post231.html
<<My Merrill Edge IRA Rollover 100k+ was recently closed and given 30 days window to transfer as well, just transferred my 401k few months ago....really bizarre decision with no reason given.....my BOA CC's, Fido's and Biz/Personal checking accounts are still intact...for now...really pissed at BOA, because the only reason I went with them is to take advantage of the perks of their platinum honors rewards, and free trades!
I use the fido's accounts heavily for AGC but no MO deposits...ever.....so really can't figure that one out.>>
<<Also, I just got a 450k biz loan from them...which I haven't even started paying yet!....I hope they don't ask for their loan back lol...any one with similar situation with more insight about this?>>
So a 100K IRA in a Merrill Lynch brokerage account plus 450K biz loan (certainly more profitable than a mortgage) does not convince BofA not to close all his accounts. A direct contrast to what you proclaim that would be good for the bank. We also have no idea what the OP's $40K deposit is from and parked there for how long. People, stop speculation because none of us has any inside knowledge on how the banks / airlines make decision but we do know that more often than not, it is a very highhanded approach that often leaves the customers have no recourse to seek justice especially with the airlines as the FFPs are not regulated and they are not subject to similar government regulations as the banks.
There are good reasons why the CFPB is established. May be there is also a need to have similar agency or gives DOT the responsibility / power to regulate FFPs. Sadly with the recent Supreme Court decision, the airlines basically are give a green light to do whatever they want with their FFPs.
Last edited by Happy; Jun 24, 2015 at 2:40 pm
Jun 25, 2015, 1:57 pm
#89
FlyerTalk Evangelist
Join Date: Dec 2003
Location: LAX
Posts: 10,908
very entertaining and yet sad to see people turning on each other during the time of award shortages... it is naive to believe those limited cases of making 50-100K off cc make any difference when
a) the total number of cards and miles issued is the same - makes no difference if it's 1x4 or 4x1
b) you compete for awards with programs like aadvantage or skymiles and each is an order of magnitude larger offering hundreds of thousands of miles to anyone willing to apply for cc..
c) all done perfectly with rules - not any different than doing mileage runs for example