02-04-2011 08:50 AM - edited 02-04-2011 08:55 AM
U.S Bank is in receipt of your request for assistance from the Better Business Bureau of Minnesota and North Dakota. We appreciate the opportunity to respond to your inquiries regarding the above referenced Kroger credit card account.
Prior to the conversion of your Kroger credit card account, Royal Bank of Scotland (RBS) sent a final file to the credit bureaus with each account marked "Sold/Transferred", as requested by U.S. Bank and per industry credit card conversion standards. After the conversion, U.S. Bank sent a file to the credit bureaus in the standard monthly format that is included on all standard bureau attributes, including the "open date." U.S. Bank stores the "open date" as the date the account was created with us and not the original account open date with RBS. This standard is common in the industry and fully acceptable by the credit bureaus. The open date attribute does play into credit bureau scores, as all attributes do, but the extent of the value of this attribute varies among the credit bureaus. Each of the credit bureaus use attributes differently in their proprietary models, and U.S. Bank does not have control over the scoring.
In relation to the lack of an open date present on your credit report, this is due to a system issue at Equifax with the last payment date being reported as prior to the date of the account build on the U.S. Bank system. When this occurs, the open date is not updated because of the date conflict. Additionally, the bureaus indicated that they did not believe the open date would create a huge fluctuation in a customer bureau score.
We are following standard credit reporting policies, but because you have brought this to our attention we are completing a thorough investigation. We value you, as well as other affected Kroger credit card cardmembers. We expect to complete our investigation within 60 days and will contact you when a resolution is determined.
We apologize for any inconvenience in this matter. If you have any further questions concerning your account, please contact Cardmember Service.
Office of the Cardmember Service President
How infuriating! This highlighted statement is exactly the opposite of what I was advised as to how the card would report. And I don't care that reporting in this manner is "fully acceptable to the credit bureaus"!!
It's NOT acceptable to me and I'm their customer!
We all know that they can report it anyway they want to (again, as I mentioned before--just like a goodwill deletion...can be done if creditor willing) ..and it seems that they do not want to report in a way that is fair and just for their customers.
I just had CL cut on one of my cards due "too many new accounts". I've only apped and opened one account this past year (Nationwide) , but Old Navy reported the Visa conversion as 'new" card in April and closed store account (also contrary to what I was advised and one I'm still battling) and now US Bank is doing same thing with this Kroger card, so now I have 3 new accounts this year, but only apped for 1.
And for US Bank to state, and sound condescending to boot, that, yes, "open date attributes" to score but they "can't control that" is even more maddening. Their stance (from previous correspondence) that we can just explain away lower scores and open dates to other creditors shows they dont know what they're talking about and further they dont seem to care.
Come on, US Bank!! You've got customers being negatively affected by reporting you can easily change if you so choose, and it's no skin off your nose if you do, so why refuse to report in a way beneficial to the customer?!?! I understand that we are technically 'new' to US Bank, but we are NOT new Kroger card customers, and that is what should be considered.
After all the complimentary posts I've read about US Bank on this forum, I find their lack of concern for their customers surprising.
02-04-2011 09:25 AM
Kroger Personal Finance is defintely not out of the woods due to false advertisement. I am waiting to see how they respond to the transition not going to affect cardmembers credit ratings.
02-04-2011 03:27 PM
The consumer did not ask for the current system. The lenders and the CRA's created this system for their own uses and financial reward.
Over the years the system has become more and more powerful, evolving into something purely Nazi in nature, holding the power of our entire finacial lives in it's grip. The system rules whether we will sleep in our car in the Walmart parking lot or live in an apartment; or whether we will walk for miles or drive the roads.
Since they've anointed themselves with the power to control our lives, they should also be forced to make their self-created "rating-system" as mathematically fair as possible. I can't believe US Bank had the NERVE to tell DI that the system is "OK" with the CRA's!
They created the monster, they can damn well feed it! They have a responsibility to us under the law. If they violate it, we should 'hoist them on their own petard".
02-06-2011 11:41 AM
Submitted complaint to FTC today regarding the KROGER and U. S. Bank Corp. Kroger 123 accounts.
Thank you for contacting the FTC. Your complaint has been entered into Consumer Sentinel, a secure online database available to thousands of civil and criminal law enforcement agencies worldwide. Your reference number is:
02-07-2011 06:57 AM
Does anyone recall if U.S. Bank sent out credit card agreements to cardmembers after the transition completed? I know we still have the same credit card and same account numbers. I don't recall receiving anything in the mail from U.S. Bank after the transition completed.