Chase Pays $300 mil for fake ID Theft Protection-Dumps Same on Sapphire
Sep 28, 2013, 7:34 am
#1
In memoriam
Original Poster
Join Date: Jan 2006
Posts: 4,020
Chase Pays $300 mil for fake ID Theft Protection-Dumps Same on Sapphire
I got a U.S. Mail notice recently from Chase recently about how they were dropping ID theft protection from my Sapphire Preferred and INK accounts.
Seemed kinda silly and a severe curtailment of benefits but I didn't think much more about it--until I read the following column by an L.A. Times columnist (Sept. 26, 2013).
The gist is that Chase is dropping the benefit because their program to dishonestly bill card holders for ID theft services brought them a third of a billion dollars in fines from the Consumer Financial Protection Bureau.
The start of the story is below:
"Sapphire credit card holders to be on their own for fraud protection
Chase's Sapphire card will stop offering ID theft coverage. Is it just a coincidence that Chase was told to refund $309 million to 2 million customers over nonexistent credit-monitoring services?
By David Lazarus
Holders of Chase bank's popular Sapphire credit card may be wondering why they'll soon be on their own when it comes to keeping fraudsters at bay.
"Please note that ID Theft Coverage will be canceled," Chase has notified Sapphire cardholders. "All changes are effective Nov. 1, 2013."
That's a pretty significant reversal considering that identity-related fraud affected 12.6 million U.S. consumers last year and caused $21 billion in losses, according to Javelin Strategy & Research.
Chase's Sapphire card comes with a bunch of nifty benefits and now boasts additional perks, such as more comprehensive trip insurance and more coverage if an airline loses your luggage.
But in today's scam-filled world, with Javelin estimating that an American is victimized by identity theft every three seconds, you'd think helping cardholders protect themselves from digital grifters would be a priority.
Paul Hartwick, a Chase spokesman, told me the bank was dropping ID theft protection because cardholders didn't want it.
"Our intention is to provide benefits that customers find valuable," he said. "That is why we improved some of the most popular benefits ... and why we canceled this one."
Hartwick said that not one of its millions of Sapphire cardholders has submitted a claim for the benefit "for at least the past 12 months." Not one.
That's pretty hard to believe.
He also said the decision to drop ID theft coverage from Sapphire cards had nothing to do with the fact that federal regulators ordered Chase last week to refund $309 million to more than 2 million customers who were billed for credit-monitoring services they never received.
I'm having a little trouble believing that as well.
Richard Cordray, the director of the Consumer Financial Protection Bureau, said that in many cases, Chase "never received the necessary authorization from customers" to sign them up for credit monitoring, which could run as much as $12 a month."
for the rest of the story see: http://www.latimes.com/business/la-f...3326044.column
Seemed kinda silly and a severe curtailment of benefits but I didn't think much more about it--until I read the following column by an L.A. Times columnist (Sept. 26, 2013).
The gist is that Chase is dropping the benefit because their program to dishonestly bill card holders for ID theft services brought them a third of a billion dollars in fines from the Consumer Financial Protection Bureau.
The start of the story is below:
"Sapphire credit card holders to be on their own for fraud protection
Chase's Sapphire card will stop offering ID theft coverage. Is it just a coincidence that Chase was told to refund $309 million to 2 million customers over nonexistent credit-monitoring services?
By David Lazarus
Holders of Chase bank's popular Sapphire credit card may be wondering why they'll soon be on their own when it comes to keeping fraudsters at bay.
"Please note that ID Theft Coverage will be canceled," Chase has notified Sapphire cardholders. "All changes are effective Nov. 1, 2013."
That's a pretty significant reversal considering that identity-related fraud affected 12.6 million U.S. consumers last year and caused $21 billion in losses, according to Javelin Strategy & Research.
Chase's Sapphire card comes with a bunch of nifty benefits and now boasts additional perks, such as more comprehensive trip insurance and more coverage if an airline loses your luggage.
But in today's scam-filled world, with Javelin estimating that an American is victimized by identity theft every three seconds, you'd think helping cardholders protect themselves from digital grifters would be a priority.
Paul Hartwick, a Chase spokesman, told me the bank was dropping ID theft protection because cardholders didn't want it.
"Our intention is to provide benefits that customers find valuable," he said. "That is why we improved some of the most popular benefits ... and why we canceled this one."
Hartwick said that not one of its millions of Sapphire cardholders has submitted a claim for the benefit "for at least the past 12 months." Not one.
That's pretty hard to believe.
He also said the decision to drop ID theft coverage from Sapphire cards had nothing to do with the fact that federal regulators ordered Chase last week to refund $309 million to more than 2 million customers who were billed for credit-monitoring services they never received.
I'm having a little trouble believing that as well.
Richard Cordray, the director of the Consumer Financial Protection Bureau, said that in many cases, Chase "never received the necessary authorization from customers" to sign them up for credit monitoring, which could run as much as $12 a month."
for the rest of the story see: http://www.latimes.com/business/la-f...3326044.column
Sep 28, 2013, 11:07 am
#2
Join Date: Apr 2003
Location: BOS .. but soon SFO
Programs: UA PLAT, TK GLD, Hilton Diamond, IC PLAT, SPG GLD, Marriott GLD
Posts: 1,528
Hmmm
I use my csp for travel, mostly buying things via smartphone apps.
Recently I had $400 worth of charges on my CC at gas stations in Dominican Republic and had to close down the account.
Are you saying that after Nov 1 I will be on my own for things like this?
I use my csp for travel, mostly buying things via smartphone apps.
Recently I had $400 worth of charges on my CC at gas stations in Dominican Republic and had to close down the account.
Are you saying that after Nov 1 I will be on my own for things like this?
Sep 28, 2013, 4:45 pm
#3
Join Date: Aug 2012
Location: BOS
Programs: Chase Ultimate Rewards
Posts: 624
The cancelled service is additional identity theft "protection" that Chase charges to provide. Discover and American Express have also been fined for selling customers these bogus services. We aren't missing anything with the removal of this "benefit".
Sep 28, 2013, 11:03 pm
#4
In memoriam
Original Poster
Join Date: Jan 2006
Posts: 4,020
IMHO, this is quite a loss for Chase card users. Now, Chase will pay for your ID theft costs, attorney fees, out of pocket losses etc.
After Nov. 1, nothing from Chase. Although you will be covered, theoretically, for billing errors by the Fair Credit Billing Act. Personally, I'd rather have Chase paying for my lawyer if I need one to resolve an ID theft problem--which could certainly happen. Suppose, Experian or another credit reporting agency refuse to correct a report error caused by identify theft ...?
The real news though, per the L.A. Times is that Chase was fraudulently bill card holders for ID theft services they didn't want. Now that they got nailed for they they are shutting down the free services they provided as well.
After Nov. 1, nothing from Chase. Although you will be covered, theoretically, for billing errors by the Fair Credit Billing Act. Personally, I'd rather have Chase paying for my lawyer if I need one to resolve an ID theft problem--which could certainly happen. Suppose, Experian or another credit reporting agency refuse to correct a report error caused by identify theft ...?
The real news though, per the L.A. Times is that Chase was fraudulently bill card holders for ID theft services they didn't want. Now that they got nailed for they they are shutting down the free services they provided as well.