"THE" letter from Chase....
 

Hello. I received a letter today from Chase stating the following:

"We have been reviewing your account with Chase Currency to Go and we find that we can not continue to provide our servides to you. Therefore, effective immediately we will no longer accept and process orders for Currency to Go from you"

This was signed by Beata Bialecka, Vice President.

Did anyone else receive this letter or something similar? Or does any one know what may have caused them to write this?

Regarding my "transactions" with Chase, before i learned of the weekly cap they placed on certain "transactions", i had requested a total of 4 transactions: 3 in 1 week and 1 last week. of the 4, only 1 from each week was completed, while the other 2 from the first week were cancelled.

I haven't called the VP yet because when i received the letter, it was already past business hours on friday. i will call monday to see what this is about, and inform you then.

just thought i'd share the latest development with you.

Very amusing.

I have a friend at Chase (who will go unnamed for obvious reasons), who told me yesterday that Chase (including its Currency To Go personnel) was aware that people were taking advantages of certain mileage-related "loopholes," including purchases of travelers checks and cash back on the CO/Chase debit card, but that Chase was not concerned about these "loopholes," and had no plans to change any of its policies.

Looks like my friend was wrong.

Cabrits -

They may have, in addition to the mileage question, concerns re: potential money laundering, etc.

The repeated circular transactions probably falls into the category of "suspicious" behavior that Chase is obligated to report, even if it's totally legit.

Bummer.

Greg

I got exactly same letter today. I plan to call Monday also. We'll have to compare notes after we talk to Beata.

[This message has been edited by MilesNut (edited 12-10-1999).]

arturo sey wat? beat-a? soun lik to arturo thet beat-a es beat-en us ff's.

1950 miles later, I got the same letter.

[This message has been edited by PG (edited 12-10-1999).]

if a 'deal' seems 'too good to be true' - it is 'too good to be true' ... or at least 'too good to last'!

[This message has been edited by Rudi (edited 12-10-1999).]

I'm starting to dread the arrival of my mailman now! I placed two orders, last Friday and Monday - they arrived together on Wednesday. However, my Wednesday order failed to materialize. Seems I might get a letter instead. At least I have a calling card to use if I want to get in touch with Beata... http://www.flyertalk.com/forum/biggrin.gif

"Me Too" letter- - I suspect it's because I ordered, & received 2 pkgs. in 1 week --other subsequent orders were not filled - I deposited the Travelers Checks immediately into my checking account. Tracking would show that no merchants were used in these tranactions --so how can Chase make money on this deal? Is it legal for them to refuse service? --and on what basis?I'll be interested in postings about this. Thanks, Renee

Has anyone wondered why Chase did this offer in the first place? After you add in the cost of the credit card transaction, postage, phone card, and TC processing, I'm sure we're looking at $20 minimum. And for that, Chase doesn't make one cent. Certainly they're not as dumb as we might want to believe. All I can see that they might get is some good advertising press, and even that is only among us, and certainly our motivation is to pad our bottom line, not Chase's. Now Chase has killed even that with the letters they're sending out (at even more postage costs to them). So what is going on here that I'm not seeing?

I haven't seen a letter yet (and the mail already arrived today), but expect I'll see one too. I placed two orders within a week, neither of which showed up. After finding out about the 7 business day rule, which still isn't on the web site, I waited til my 7 days was up and tried again. Ordered Thursday, nothing showed up Friday and was told that that order was cancelled too, although the rep. I spoke with couldn't understand why.

This is a foreign currency operation (even the US dollars) and there are ways to make money that are probably not apparent to the average person. I am not a financial expert, but currency futures and forward contracts come to mind as two things they may be using to make money.

Well, I hope you all enjoyed this while it lasted. Hopefully I won't get another type of letter from Chase (served with a lawsuit for loss of $$ !!!!!!!).

Yes, they can refuse business to anyone. They are a private company.

Received my letter today as did my sister and my mother. It's ridiculous. Yes, they can refuse your business but on what basis. We have received 3 orders total between the 3 of us. Their computer system has some kind of problem because they keep putting my mother's and sister's orders under my name. We have tried reordering and they keep getting cancelled. I say they either provide the service or they don't. I have a call into a supervisor and I will be speaking to someone. They must of been stupid not to know that people will be doing what we're doing, so know pay the price.

I would think that Chase probably makes money on this, on aggregate scale. Yes, they are willing to absorb approximately one percent commission on credit card orders (provided that average VISA / MC discount rate for large merchants is around 2 percent, and the merchant's bank gets approximately one half of this fee -- and Chase obviously is both the bank and the merchant) and give you free shipping (valued at around 5-6 dollars, I'd say). Of course, this is not a free lunch, and they get (1) interest on the purchase amount effective from the day the credit card transaction is processed until the day the Travellers Cheques are deposited for collection (and in many cases, this period is rather lengthy), and (2) many Travellers Cheques never get cashed in the first place, which adds tremendously to their bottom line.

On average, they make money on these transactions. Yet, it makes good sense for them to track customers that cash the TCs right away; it also is a potential problem, as in many instances credit card companies give you different limits for purchase and cash advance transaction, and this option from Chase allows a small percentage of people to abuse the system, making us to pay higher fees in the very end.

I, for one, think that Chase is acting rather foolishly, as this creates a lot of bad will and customer service problems. If such loopholes exist, then paying some of the Chase top executives million dollar salaries is not justified, and we, as consumers, are actually teaching them a good lesson, as far as their policies are concerned.

Thank you VladdieD for your explanation. I think we have a winner!

They absorb the fees because they hope to earn the interest for a while, and they hope you lose the checks. Once they identify people who cash all the checks right away, they cut them off. It's very smart actually, and we really can't blame them. So, those of you who haven't been cut off yet and you want to keep the checks coming, consider holding on to them.

Except that ...... I still have the traveler checks and received the letter from them.

Me too.......I still have all the checks & I've was cut off after one week (2 orders).

I placed an order for me, and aftaer two days, for my daughter, husband and father. All on different credit cards, and phone numbers, but the same address and different "apt.#s" I got all four orders but my daughter and husband were each sent "the letter" dated the day of their order, but their order arrived the next day. I ordered again for myself after waiting the 7 days and got my order, but the orders for the other 3 family members never arrived. My father hasn't yet received a letter. I have not cashed any of the travelers' checks so they do not know that they aren't for a planned vacation (which some of them will be). I called and spoke to a Neville Francis who asked me to fax the letter to me so he could find out what it was about (FAX is 516-828-4242). I have not yet heard back. The tone of the letter is awful. They could give their reason instead of writing a later like that. How much "reviewing" could they be doing the day an order comes in. Any why can't people order checks in their own name just because they live in the same "building?" I placed an order for my father who did not yet get a letter. I don't know what will happen when I wait the week and order again. Thanks for posting this as I was afraid to go back to the original post with all the "just let it die" messages. Misery sure likes company. I'm glad I wasn't the only one. Feels less personal.

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DtG

I agree with DtG our communication with each other helps us a lot & keeps us on top of things. (A big thanks to Randy on that note.) I too felt somewhat better knowing that "the letter" wasn't a personal thing.

I don't think Chase is making any money on this. People who buy travelers checks (aside from folks like us who do it for the miles) do so for an upcoming trip so almost all of the checks are cashed in the course of the next three or four weeks. The interest on a thousand dollars for two or three weeks doesn't come close the cost of handling, mailing, phone cards, etc. This is a promotion to introduce people to Chase with the idea of signing them up to become Chase checking, saving or investing customers and its a lot cheaper than what,say, Etrade is doing which is to pay people 100.00 to sign up. Once Chase identifies the people who have an ulterior motive (us) a letter goes out.

I got THE LETTER, too.. Interestingly, it was dated 12/02, and yet I got another order that was shipped out 12/03 (received 12/06). Oh, well - it was good while it lasted (for me that's 2,000 miles plus 240 phone card minutes).

I'm not surprised the letter is so unprofessional and unbusinesslike (unless you take "businesslike" to mean brusque to the point of rudeness). After all, their web-site promised to contact us if our order was turned down for any reason...and with all the unfilled orders (including some of mine) due to exceeding the (unpublicized) weekly limit, did they ever contact any of us?

By the way, Chase has to have lost money big-time on this. Sure they are (in some cases, but not in my orders) both the merchant and the cardholder's bank, but that just means they get to keep (i.e., not pay themselves) the portion of the transaction fee that would go to the cardholder's bank. They still have to pay the portion that VISA (or whomever) would retain. Then there's the waived delivery fee (which I'm sure UPS did not waive!) and the Ameritech phone card (cheap, but surely not free). Granted, they probably got the checks free from American Express (no commission), but I'd lay odds that AmEx is the one that makes money on the "float" and/or lost/uncashed checks (which is why they were willing to provide them free to Chase).

As for what triggers THE LETTER, AmEx would get the report of which checks were cashed & when; I can't believe Chase would have heard back so soon (or would care). Besides, the fact that people have received the letter without even cashing any checks shows that Chase is looking at order patterns, not check cashing patterns.

What was in this for Chase? Hoping that we'd order some currency at the same time (fat chance, given their ridiculous rates). After all, if not for the miles (which I'll bet Chase didn't even think of), how many of us would have ordered US$ checks unless we were traveling somewhere...in which case most buyers would order some currency "for the convenience."

[This message has been edited by johna (edited 12-13-1999).]

The stuff that is said here doesn't make sense. The talk of chase generating a letter after reviewing someone's order pattern does not jive with what some others have said. When one makes a sole order of travelers checks and gets a letter from chase, what pattern can possibly be said to have developed?

I agree Sergio. It doesn't make sense. All I can tell you is that I got the same exact letter (word for word) as Cabrits.

Maybe their computer points out people who order more than once in a short period of time....or orders for several different names that have gone to the same address....who knows. In any case, it is obviously an attempt to weed out the abusers. Maybe Upgrademe can ask his friend at Chase.

Was on the phone with Chase this morning trying to understand why my Thursday order was cancelled. Turns out, they don't even have a record of it! The rep. I spoke with could not locate it anywhere under either of the two phone numbers I would have used, although he did see both the one order I have had filled and the one I that was cancelled over a week ago. My guess is that they are having huge problems with the in-flow of orders. I'll probably try one more time (assuming I don't see the letter) and then pack it in. It's at the point were it is not worth the trouble. As for banking with Chase, I don't think I would ever consider it after this fiasco.

FedEx just delivered my second order. I ordered $950 got $1000 and a second phone card. Hope I don't get the letter.
I am interested to hear what the bank tells the letter reciepients.
Has anyone received their credit card bill yet?

Thanks, Jay

Well after a lot of red tape I finally did get the direct line number to this Beata Bialecka (212-622-1962) but she will not be in until Tuesday. I guess I'll have to wait until tomorrow.

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MilesNut

Jay Brian - if you're asking, did they show up as purchase rather than cash advance, the answer is purchase with Citibank..

Mileage Plus First Card may be a different story...I did a $100 Casino Cash transaction in Vegas in November; it had always shown up as a purchase when I'd done that with Citibank previously, but my UA card showed it as a purchase but with a $5 transaction fee attached; First USA said it was a "Quasi Cash" transaction and should not have generated miles as a purchase (but it did). First USA is totally incompetent and has no idea what they're doing (if it wasn't a purchase, then it should not have generated miles..they seem to want to ding you for fees no matter what..)..

I received my First USA (affiliated with United) statement which reflects one of the purchases. It is a charge and there is no fee assocated.

Honestly, I did not expect this to last, so I am not upset at Chase. But it seems to be arbitrary who gets this letter and who does not.

Lets see -- I got the letter too. Beata's phone as stated above is (212)622-1962. Her assistant is Beth (212)622-1420. Chase's main corporate office number is (212)270-6000.

I spoke with Beth this afternoon and we discussed the issue at length. It seems that for mutiple orders, they are cutting people off for fear of credit card fraud. I explained to her that I was a 100,000 mile a year flyer and a Chase customer for 13 years who was not very pleased with Beata's letter. She could not agree with me verbally, but her silence told me she agreed. I told her I expected an apology from Beata (otherwise, I would move my account) and I would be ordering my checks from Diners Club. I also called Chase's executive offices, requested their fax number to fax them the letter and to let them know my displeasure with Beata's letter. I will keep you all informed.

--Jim

For some reason Chase decided that if they could not give me miles, they would offer the next best thing. In my mail today were two luggage tags (which were dispatched straight to the garbage bin).

Hallo Ladies...

Marvella has 3 words for you all...

"Get over it!!!"

Kiss Kiss

Marvella

My letter showed up today, as expected. I would have to say it is one of the most distasteful business letters I have ever read. Basically,...you are cut-off. No reasons, no nothing. The tone is awful.

Thanks for the contact numbers Jimboliguy. I plan to call them this week.

Yes, thanks much for the phone numbers JIMBOLIGUY. I agree the letter is a joke. The most unprofessional letter I have ever seen. No phone number, of course, we wouldn't want to call her. I'm sure she'll get an earful tomorrow. I spoke with a rep today again and was told that if the address is the same or in my case similar (different "unit" numbers) the orders are cancelled. I repeatly asked, if I lived in an apartment complex of 300 people only one of us could order. They all agreed, that is was ridiculous but that is how the system is set up. I kept getting the same answer, fraud. Since I am not a Chase customer I don't have the same pull that JIMBOLIGUY has but this is truly the worst customer service I've seen. I'm assuming they started this service to attact customer, instead they pushing them away. Look forward to hearing what everyone can accomplish with their phone calls.

I called Chase this evening to find out where my order from last Thursday was. The representative informed that my order was cancelled because I had not waited seven days between orders. "But December 2 to December 9 is seven days" I said. But you have to wait seven business days" said the representative. According to the representative, I can order anytime after midnight tonight.

And yes, I have a call in to my source at Chase. From now on I'll simply refer to him as "Deep Bank."

For some stories about other chase bank experiences, go to www.chasebanksucks.com

I wonder if people ordering smaller amounts aren't getting the letter, so if you ordered $600 instead of $950, maybe you go undetected?

TG

I got MY letter today. I have calls in for my daughter. Both Beth and Connie have returned my calls. Yes, we had the same address, but different unit numbers. Apparently that is what triggered it as the 7 days had passed and all other info was different. No checks were cashed. Credit Card Fraud is ridiculous because if that were the reason the letter would state for us to call our credit card company to tell them it was legit. The letters my husband and daughter got were send the day their very first order was made. The order arrived the next day, a week before the letters. I think that they are avoiding no fee cash advances, but I'm not sure why it would matter to them. I think EVERYBODY should call and complain about the negative press and image the CHASE is presenting. They have lost rather than gained potential customers.

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DtG

I received my letter today, and I can't believe how unprofessional it is. Negative tone, no explanation, and no contact information. I received my first $1000 order but only one of two subsequent $500 orders.

Does anyone have a snail mail or email address for complaining to Ms. Bialeckea?

BTW, when I worked in customer service for a mail order company we used a fictional unisex name (e.g., Blair, Jordan) for letters to customers we suspected of fraudulent credit card use. If those customers called, then any of the CSRs could handle the call without fear of being threatened and personally identified. Some people insisted on getting their orders even though the credit card issuers had told us the contact or shipping info was problematic.

[This message has been edited by paradox (edited 12-14-1999).]

Let's see...you find an offer that is really too good to be true. You know that this kind of deal has come and quickly gone in the past. It is extensively discussed in a public forum. You do get some benefit from it. The offer quickly evaporates. And you are SURPRISED/OFFENDED?????

OK, the tone of the letter sucks. But honestly, would any of us done business with Chase if this offer did not exist? We all took advantage of a loophole and did violate the spirit of the offer (and it really is their fault that they did not place proper restrictions on the offer), so what is everyone up in arms about? Enjoy the miles you got, and enjoy spending the TCs, and get on with life...this plane has left the gate...

I'm not sure I see the loophole we supposedly took advantage of. Chase offered to sell TCs with a credit card payment, which is what we did. Chase couldn't care less if we got miles for the purchases or not. The only improper action on our part, myself included, was to try to use fictitious names or "apartments" to get around the 7-day restriction. Sounds like those who did got cut off. Completely deserved. But ordering the TCs in the first place for the sole purpose of earning miles was completely proper.