Delta files for injunction over U.S. Bank WorldPerks credit card [Suit Settled]
 

April 24, 2009

Delta has filed for an injunction to stop U.S. Bank from automatically switching WorldPerks Visa cardholders to their generic travel rewards program. U.S. Bank has said it plans to switch cardholders to this new generic travel program, whether the customer wants it or not, and even if the customer continues to use the WorldPerks card.

Delta contends that U.S. Bank’s actions have confused WorldPerks cardholders about their ability to continue to earn WorldPerks, and ultimately SkyMiles, with the WorldPerks credit card through the card’s expiration.

“Delta has made every reasonable effort to resolve the dispute with U.S. Bank before filing this lawsuit, but we were unable to do so,” said Jeff Robertson, v.p.-Loyalty Programs. “Delta’s goal is to protect the right of our valued WorldPerks cardholders to make an informed and voluntary decision about their credit card needs. There is only one official credit card for the world’s largest airline – the Delta SkyMiles Card from American Express. There are no substitutes. The only way to guarantee WorldPerks cardholders will continue to enjoy all of the benefits offered under the WorldPerks, and ultimately SkyMiles, program is for them to secure the Delta SkyMiles Card.”

These are US Bank's customers to try to keep. All credit applications were made to US Bank, the phones are answered by US Bank, the statements come from US Bank, the on-line access is integrated with my US Bank checking account & equity line, etc.

Here's hoping Delta gets socked with the attorneys' fees!

From a two-week-old article on the new card:

US Bank is taking care of its customers and ensuring that their financial arrangements don't suddenly grind to a halt.

Screw you, Delta.

Personally I don't plan to make much use of the new card, but i do have a balance to roll over and one or two small automatic payments that I've yet to convert to my WN Visa. I could care less about the "Perks" part of the new card, but I really do apprecaite USBank's effort to provide continuity.

Does the OP (iaflyer) have a link? All I can find in Google is this thread.

Darn, that Google is fast!

Go Delta. US Bank is one of the worst companies I have ever done business with.

Bring on the Delta Am ex.

For individuals who want an Amex card, that's fine. If you enjoy using a credit card that is accepted in fewer places and whose issuers seems to be arbitrarily rolling back peoples' credit limits (has happened to numerous FlyerTalkers, sometimes mid-trip), Amex is your company. Enjoy it!

However, Delta should not be interfering with USBank customers who have established relationships (including the credit card) with USBank. That kind of interference sucks.

Why does it not surprise me that Delta & JeffBob would stoop to this?

Found one:

St. Paul Pioneer Press: Credit-card brawl: Northwest Airlines sues U.S. Bank over FlexPerks

I say to clear this whole mess, NWA should just unmerge itself from Delta and everyone is happy. :p

Give me a break Delta. My account belongs to US Bank. It's no different than American Express owning my account. I don't see JeffBob getting all rattled when I switch from the SkyMiles AMEX to HiltonHHonors.

Just another example of the antagonistic attitude of Jeff Robertson and the folks running the frequent flier programs. We already know what they think about their best fliers...

And to the other dude who dissed US Bank...I've been with them for over 10 years with checking, savings, credit card, line of credit, etc...and they've always been very fair with me.

That's not very nice, Delta. So what happens to our credit score if a large part of our revolving credit, and one of our oldest accounts is suddenly removed from the picture? You just want us to take another credit hit by applying for an AmEx card?

One more thought and then I'm done...Did it ever occur to Jeff that many WorldPerks Elites and Signature VISA card holders simply dislike SkyMiles and that's why he and his group faces us staying with US Bank?

What if you apply and are denied credit? Delta makes it sound magical, as if you automatically get a AmEx from them if you already have a WP Visa. "Just switch to our AmEx and everything will be super-dooper." Riiiight.

//A

I'm initially supportive of this move. I put a significant amount of spending (for me) on that card over the first 4 months of the year to aim for the MQM bonus. Having the program unilaterally ended early by USBank has not exactly left me with much good will towards them.

As for the rather weak and ill-informed commentary earlier that USBank is wonderfully taking care of their customers, nah, not really. They decided to throw a hissy fit about being dumped by Delta and took it out on the customer. I paid a fee to access the benefits of the WP card and now those benefits have been yanked away half-way through the year. Tell me again how that is taking care of me?

If the suit gets me EQM earning through the end of the year, I'm all for it.

And American Express is inflicting grievous harm on its customers right now, closing accounts and cutting back credit lines without warning. You would have to be drunk or insane to rely on Amex, or mistake Amex for your ally. Delta knows they are marrying a toxic, unstable brand in Amex and they've decided the best defense is a good offense.

The injunction request is frivolous and ridiculous. If Delta itself switches airline alliances or business partners, it's not actionable. If anything, US Bank ought to try suing DELTA for weakening the value proposition of its principal credit card. The bank has a right to try retaining customers with a unique new proposition (even though it sucks :td: ). And you better believe US Bank's lawyers already determined NW has no monopoly on the word "perks."

There are no winners in this. Delta SkyMiles is a rotten FF program. Amex is a treacherous, horrible company. And FlexPerks is a terrible, weak, borderline-misleading proposition. Perhaps, like Godzilla rolling into a volcano with Rodan and Mothra, they will all kill each other and that'll be the end of it.

Peace out.

Sorry that I didn't post a link - I got the information from an internal Delta news site. I looked for an press release from Delta before I posted, but couldn't find one.