One thing I hate is when a flack contradicts something I have reported. Not familiar with the word "flack?" It's what journalists call a public relations person hired to spin and disseminate corporate information. On January 13, 2009, I reported that WaMu would no longer offer free FICO scores to its credit-card customers. I cited unnamed sources. Now hear this: Chase has confirmed my story, despite the fact that Chase, through its spokesperson, was publicly saying that a decision had not yet been made as recently as yesterday.
Thursday, Bankrate.com wrote a story titled "Chase drops WaMu secured card, FICO score." In the story, a Chase spokeswoman, Stephanie Jacobson, confirmed my story about WaMu's secured card being axed, but refuted my story on Chase's decision to kill free FICO scores. Chase told Bankrate.com that a decision to kill FICO had not yet been made. Chase is "still evaluating WaMu products and services, including WaMu's FICO Score program," Jacobson told Bankrate.com. See story here (link).
That's a direct contradiction to what I have reported (story here). Indeed, my sources said that the decision had been made and that the score was officially gone as of March. What's more, Chase's denial is also a contradiction to what WaMu's customer-service reps were telling customers through its online message service. And, of course, it's now contradicted by Chase's Web site, which says this (link here):
You'll recall from my previous reporting that one of my sources said that Chase's decision to kill FICO could be a temporary one. Chase seems to be confirming that as well, which is evident from the language on its site. Still, my best source says that Chase will not resurrect this feature -- even though Chase would like customers to believe that there is still a chance.
A reader, curious as to why his FICO score (also called PFICO by some of us) had not yet updated this month, sent a note to WaMu through WaMu's online message system. He asked if the FICO score is being continued at WaMu. WaMu, in response to the query, sent this response back: "After the transition to Chase.com the My Credit Profile and FICO score will no longer be provided at no cost." No more free FICO scores. However, the rep wrote, a service called "Chase Identity Protection" could soon be available to WaMu customers -- at a cost of $9.95 to $11.95 a month, depending on the level of service that a customer chooses. The scores provided through Chase Identity Protection, meanwhile, are not FICO scores, which makes them all but useless. We call these scores FAKO. Read my story on the topic here (link).
See online message from WaMu here (click to enlarge):
All I can say is this: My WaMu sources, all of whom have been spot on regarding other aspects of the WaMu/Chase integration, nailed this story. Next time you hear a Chase flack talking be sure to take their words with a grain of salt.
In the meantime, WaMu's FICO score for January updated today. That's right in line with what I've been reporting. January and February scores will be available to customers. Scores will no longer be available beyond that.
Chase, thanks for playing. You lose.
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Friday, January 16, 2009
It's Now Official: WaMu FICO Score Is Dead
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43 comments:
I'm pretty sure Chase Identity Protect has been available for some time, to Chase and non-Chase customers alike. And while they expect us to download 18 months worth of transactions, they'll only let us do it one month at a time. Oh yay, I get to download and keep 18 separate .csv files.
(Stupid PFICO didn't budge one point. How?!)
Oh, sorry, 36 files! I have two cards! >:-(
Ulysses, me too... Ugh.
Couldn't they have merged them for us?
Or .zip'd them or something?
...Or made them available on the Chase site?
We call that a complete migration in the IT world.
AH!!! Don't use their "download" link. Go to the bottom of the page to "tools." Click "report builder." Then enter a date range, and save as a pdf!! Weirdly enough, one card would only let me go as far back as 8/07, while the other went back to 6/07. But whatever. This worked well enough for me.
Yeah. I thought it kind of funny how the rep was trying to spin the Chase Identity Protection product as some latest and greatest product.
Ulysses, I just found that too!
In case you missed it, Chase says that it is evaluating a way to provide FICO scores to customers. Remember that a source told me that Chase's decision to kill FICO could be temporary. But another source, who has been right a lot, says that this is a permanent decision.
CM, someone on CB mentioned a CSI episode where the serial killer would give their victim a ray of hope before killing them. I suppose for the thrill?
They are hoping that people will not close the account. If there is some hope, people are less likely to close.
Clutch, that's the scariest kind of killer there is...
But I agree that they're blowing smoke up our unmentionables. Free scores are finito.
Thanks for keeping us in the loop, CM
Glad that I could be of service, LBCS. These are the kinds of stories that will give me more credibility with my readers. I don't trot out stories lightly. And I made damn sure that I had my story nailed down before I published it earlier this week. I hated seeing Chase contradict me yesterday.
But in the end, we know who got the story right (and first).
I'll continue to keep my readers in the loop.
Great job getting that out. What happened to value added services? That was a major selling point for me with WAMU. Suck!
I was just reading the item at Consumerist, and the comments... it amazes me how uninformed people still are, and how snooty they are about it, to boot. People really do believe that the only reason you ever need to think about your scores is when you're making a major purchase. Another popular myth. Do something to lower your scores and enjoy watching the AA dominoes fall.
That's OK, Ulysses, we know better here. My readers are well educated and right on the stick.
Magali, thanks. Would have been a great way to retain customers. I guess Chase had to weigh the cost of keeping the score v. the cost of keeping customers.
You know how it often goes with Chase.
Bottom line rules.
Maybe they don't want to retain customers. Not "special" customers, anyway.
If they want to get rid of some customers faster, Chase can say that there is no hope of a FICO score in the future. I know several people who will be killing their card as a result of FICO no longer being offered.
But I just got a letter from WaMu that was totally unnecessary. "This letter is to confirm that your rebate amount of $3.01 has been donated to [organization associated with my card]." NO KIDDING. How many millions of these useless letters do they send out, and how much does it cost?
Sorry for being gripey, and OT too. But seriously. These banks waste so much money, on useless things that anyone with half a brain would advise them against, yet we still have to bail them out of their messes... over and over again. STOP WASTING MONEY!!
Ulysses, did you read my story about WaMu and my shredder? LOL.
Here you go:
http://www.creditmattersblog.com/2008/09/should-i-opt-back-in-i-already-know.html
HAHAHA!!! Capital One owns my shredder, lock, stock and barrel. Convernience checks twice a week, no matter how many times and how many ways I beg them to stop. Balance transfer offers up the yin-yang, when they're THE ONLY CARD I CARRY A BALANCE ON. They AR me every month, they should know that.
I can't imagine how much money these banks would save if they stopped repeatedly bombarding millions of customers with worthless junk mail. I don't want this garbage, and I've made them aware of that more times than I can count. And yes, WaMu is also guilty of junk mail carpetbombing. Millions upon millions of dollars must be wasted monthly on producing and mailing this shredder fodder.
When I want to know what is going on I just come to read this blog, thanks!! :-)
"clutchcargo said...
CM, someone on CB mentioned a CSI episode where the serial killer would give their victim a ray of hope before killing them. I suppose for the thrill?"
I watched the episode...
Right before the climax, the killer says, "I lied."
Heh. Chase's answer according to the WAMUcards site is "Buy Chase's FAKO Monitoring Service"
PFFFT!
Maybe my chance to get back in good with Chase after stiffing them with my mortgage 10 years ago and almost $10K with an old Shell Mastercard.
L.L., I am glad that you've come to think highly of my blog. I enjoy breaking news here. And I enjoy making sure that my readers are right on top of everything. You keep reading and I promise to keep kicking ass around here.
We make a good team.
Thanks.
Anon, isn't that great? We're getting rid of FICO scores but you can get our fake scores. And only for $9.95 to $11.95 a month. Uh, no.
My updated FICO finally posted to my WAMU account yesterday--this is a feature I'll miss. I used this account regularly for travel because the international purchase fee was only 1% rather than the typical 3%, but they have increased that fee to 3% also. Rather than closing the account, doesn't it make more sense to stop using the card to avoid the FICO hit that comes with closing an account? For now, I'll take the card out once a year and buy a coffee whereas I previously charged a thousand a month or so--sometimes carrying a balance.
Anon, here's the rule of thumb with closing accounts. First, the account continues to age if it gets closed. So there is no harm there -- at least for the next ten years.
The trouble happens because of the utilization factor. Often, people can't weather the reduction in lower available credit. So, yes, it's usually much smarter to keep the account open and make periodic purchasers.
In this environment, though, once every 12 months won't work. I would recommend a purchase every three months. Card issuers are on the hunt for inactive accounts. I would argue that using a card every 12 months is a recipe for closure.
And, yep, I did see that the international fee had climbed to 3% (my that screen shot I posted above).
Everything about the WaMu card that we liked has now disappeared.
In the meantime, here is a story I wrote about closed cards and FICO.
http://www.creditmattersblog.com/2008/08/how-closed-credit-cards-impact-your.html
CM:
I answered your question at CB.
http://creditboards.com/forums/index.php?s=&showtopic=378592&view=findpost&p=3543647
I just realized I may have single-handedly altered the PFICO graph!
(That's my story, and I'm sticking to it.)
;-)
Cool. Thanks for clarifying.
No problem, CM!
Is there another credit card that offers a free FICO score?
I wrote about the Sears Solutions MasterCard, but I am quite cautious about advising that card. You can also get your FICO score if you are a member of the Pennsylvania State Employees Credit Union.
Here is a story to the Sears card: http://www.creditmattersblog.com/2008/11/sears-kmart-mastercard-perk-free-fico.html
Here is the story about FICO scores becoming more widely available: http://www.creditmattersblog.com/2009/01/fico-scores-may-be-offered-more-widely.html
Chase simply wants the money... personally its not worth $9.95 a month. You can take the 5 point hit and get a credit report when you really need one... but paying for information that should legally be ours anyway is stupid. The free FICO scores was the entire reason I got the card with WAMU. This is what happens when the big giants win out.
Anon, no reason to take a point hit at all when you get a credit report.
And regarding FICO scores, stay tuned. They're coming. At some point in the future, consumers will be getting a free score each year. I don't have all of the details yet. You'll have to trust me.
The scores won't be offered with specific cards. It will be like the free annual credit reports we get.
Chase will lose me as a customer.. period. I have been a WAMU customer (Checking/Savings/Credit) for over 5 years and I will switch banks. If WAMU was able to justify a business case for free FICO score access in order to differentiate their credit card product surely Chase can also.
Richard, Chase should have been able to keep the scores. But it's a matter of dollars with Chase. It always is.
WaMu was well known in the industry for overpaying for deposits (always have rates above competition) and they were likely paying too much for the FICO scores (according to Chase).
Is there anything customers can do? Isn't Chase using its new found monopoly power to make this customer unfriendly decision? Besides i guess WaMU was one of few that ever had a free FICO.
I will reccomend you strongly protest against this with Chase. (just use the email feature on WAMU website)
MiKeM
Regarding monopoly power, they'll be writing books about this era. These bank mergers have been going through with no antitrust review at all. We now have huge banks. Some have power, in certain locales, that I imagine would not have been allowed had the Fed been reviewing this stuff.
As for Chase, it's a bottom-line decision for them. Feel free to shoot notes via email, but you'll be getting the same -- canned -- response every time. The reps are taught to send the same response to the FICO question.
I got this email about my credit card. Great.
However, please note that your free FICO® credit score will no longer be displayed, and only 3 months of transaction history will be available online. If you wish to access your historical transaction information currently available online, you will need to save, download, or print it by March 1, 2009.
I think everyone needs to simply email Chase/Wamu from the contact us page to express their disatisfaction. Tell them you would like to reconsider. If they don't then let's all just take our CC business and deposits else where. I know I will be!
I also like the fact that Wamu is putting a stop to notification oof billing via e mail alert! They want you to be late so...they can hit you with the famous Chase late fee! I cant believe they recieved 1 cent of tax money to help keep them from sinking...I wish they would still sink into The depths of He --....
I had a problem making my monthly payment on the the WAMU Website during the Chase WAMU transition. I called and they told me I could not make a payment over the phone either. I was told I would have to wait 3-4 days to do it because they could not access my account. I advised them that it would make my payment late but I could pay $14.95 to make the payment on the due date. After speaking with a supervisor I was told they would not charge me $14.95 (Oh Thanks for being so kind) The same thing happened to my son 03-04 through 3-09-09 (no Web access to their site.)He called and they said he could make his payment on 03-09-09. He did but they didn't post it untill 03-10-09 which made it 1 day late and charged him a $35.00 late payment fee. He called them again and they would not remove the late fee and when he protested, they hung up the phone on him. He was polite when he spoke with them, (i.e. no foul language) I wonder how many WAMU cardholders this happened too and how much money they collected. Has anyone had this occur?
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