PerkStreet Rewards Vanish without a Trace
If you’re like most credit card rewards customers, you strive to earn as many rewards as possible. This may go as far as adjusting your spending habits to make sure you get the maximum cash back.
What would you do if your card company pulled the rug out from underneath you, cancelling their rewards program without any warning whatsoever? That was the grim reality recently for customers of PerkStreet Financial.
The Boston-based firm offered 2% cash back on all signed debit card purchases, which drew in a significant number of customers. After all, it was one of the few debit cards to offer any type of rewards, much less a substantial 2%.
But the company announced they were ceasing operations on September 26, and any rewards that were claimed after August 12 would not be redeemed.
The statement from the company: “Consistent with the terms of our Rewards Program Agreement, we discontinued our perks program and cancelled all perks balances as of Aug. 12, 2013.”
The value of the lost rewards balances–over $1 million.
CEO of PerkStreet Dan O’Malley issued a statement on Facebook saying, “I wish we had another option — we just don’t have the funding to pay out perks.”
The events at PerkStreet should concern all rewards customers. While our credit card companies may not go out of business, many rewards programs can be changed, or even cancelled, at any time.
A number of credit card companies, even those that have been around forever, have a line in their terms of agreement that states “We may add, delete or change any term of this agreement at any time.”
You can’t assume that your rewards will always be there.
Should this discourage you from using credit card rewards? Not at all. Just be aware that the rewards programs may not be in existence forever. Cash in those rewards on a regular basis.