Dear Liz: For decades I owned two credit cards that earned airline miles with all my expenditures. I always paid the bills in full on time and never missed a payment. Earlier this year, I mailed in checks to cover the balance as I always do. But then I noticed the checks had not cleared my account after three weeks. I assumed the payment was lost in the mail, so I stopped payment on the checks and paid the amount I owed in full online. But then the checks came through to the bank. Since the checks had been stopped, they were returned, and even though I had paid my bill in full, both of my cards were canceled.
I called the customer service number several times and spoke to supervisors and they all said I had a great case, but then I received letters back rejecting my requests to get my cards restored. I tried to apply for a new card and that too was rejected. My credit rating is very high, and this seems very unfair to me as a longtime loyal customer. I have other credit cards but these were the most important to me for the accumulation of miles as I travel a lot. Is there anything that can be done to reverse the decision?
Answer: You need to attract the attention of a human being with the power to override this credit card issuer’s automated systems and that’s no easy task.
You did the right thing by calling the customer service number several times, since phone reps can vary considerably in their ability to solve problems. You might have to cycle through several reps before you find one with enough savvy, training and interest to actually help you.
Since you washed out with the phone reps, your next step should be contacting the office of the bank’s chief executive. That may just earn you a form letter, or you may catch the attention of someone who realizes how unfair the cancellations were and who is motivated to help.
In the past, a complaint to the Consumer Financial Protection Bureau often prodded banks and other companies to do the right thing by their customers. The current administration’s attempts to kill the bureau are being challenged in court, and the agency is currently accepting complaints again, but it’s unclear how much help you can expect to get.
Even if you can’t get the bank to reconsider, you should resolve to stop sending checks through the mail. Mail theft and check fraud are soaring, while electronic payments continue to be a safer and more secure way to pay.
Also, you don’t have to give up accumulating miles for your favorite airline. Other credit card issuers offer general travel rewards that allow you to transfer miles to airlines (and hotels and other travel providers). While airline-branded cards can help you earn elite status and come with other perks, general travel rewards cards offer the flexibility to book with a number of different carriers.
Dear Liz: What is the difference between a revocable trust and an irrevocable trust? Which one is better? I am a widow with two sons who will inherit my estate. My net worth is $1.4 million, including a mortgage-free house.
Answer: The two types of trusts serve different functions, so neither is inherently better than the other.
Revocable trusts can be changed as long as the trust creator — that would be you — is still alive. You retain control over the assets in the trust and can sell or dispose of them as you wish. The most common revocable trust is a living trust, which allows estates to avoid the court process known as probate.
Irrevocable trusts typically can’t be changed. They are often used to protect assets or reduce an estate for tax purposes. The trust creator generally loses control over what happens to the assets in the trust. Irrevocable trusts are typically more complicated to set up and to administer, and may require a separate tax return.
An estate planning attorney can review your situation and advise which kind of trust, if any, might be best for your situation.
Liz Weston, Certified Financial Planner®, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com.
