07-21-2013 12:51 PM
Well many people seems to forget that customer is a god. He can choose to give his business to which ever companies provides the best services. Every customer is important considering the customer acquistion cost of a new customer for a credit card company. You should look at latest result of Amex or CapOne for the same.
Yes the customer can choose.
So can the bank.
It takes two hands to clap.
From a business owner's perspective, knowing when to show the door to those customers who aren't profitable and never will be is of paramount importance. The 5% of the most troublesome customers will negate the profits from the 95% good customers; and, continuing to allocate resources better spent on the 95% to this dour 5% is pure folly, since these customers will never be satisfied regardless of what you do for them.
The goal of a thriving and growing business is to purge these 5% unprofitable/resource draining customers, who are like a financial cancer to a business's profit margin.
Banks operate on the basis of perceived risks vs. rewards. If the perceived risk is a lot higher than the appropriate rewards they would be getting in return, any logical human being will pass at such a "deal".
The thought isn't that far out, or at least I assumed. Many people do this sucessfully with other companies: satelite radio, cable tv, satelite tv, monitoring services.
I suppose its different with banks, but lets not forget some have been sucessful waiving AF.
Getting AF waived is very different from getting a CLI.
Getting your AF waived is somewhat similar to getting a discount / freebie from a company, which is similar to the examples you stated about cable tv, etc.
However, threatening for a CLI is a very different concept. You are not asking for a free T-shirt, discount, or some freebie. You are literally trying to force the bank to loan you more money, money that the bank is worried that they will never be able to recoup. And if you really do end up not paying that back, their losses are going to be a lot more than whatever discount you got for your satelite TV.
07-22-2013 09:08 PM
I have never done this or have any desire to but has anyone ever threatened to close their account unless they received a CLI or some other change?? Interested to hear some stories or if the companies called the bluff
I did that once before, maybe a year or two ago. I complained, complained, and complained some more. They didn't give in and I still have the card. As soon as I get the better cards I want, I'll get rid of it. They don't have to increase my limit and I don't have to carry their card....
07-24-2013 03:03 PM
This kind of threat may work under certain circumstances (i.e., you're a high-value customer with spotless credit), but be prepared to close the card if they call your bluff. I've read of people making similar threads before, and then when the CSR follows through, they get upset.
This would work if your tagged as a highl profitable customers, but would otherwise result in an instant account closure. Never threaten unless you stand prepared to follow through.
Nothing more pathetic than "the boy who cried wolf" syndrome.
This strategy can possibly work if you also happen to have other accounts tied in as well with the same lender.
For example you are a Citigold client with Citi, or a CPC with Chase, and want a CLI or something reasonable done. Due to your private banking relationship and/or account balances, they might be possibly a lot more accomodating than they would normally just to retain you as a client. Certain forum members, including bibro (hopefully he can elaborate more on this) had used his JPMorgan banking relationship to help with his approval odds during recon calls with Chase. It's common business practice. They're not going to give up on a forest just because of a tree. And if you were indeed a valued client, I doubt you even have to really "threaten" them at all. A brief mention should get things going in the right direction assuming the request itself is reasonable.
My situation was pretty unique. I was applying for my 7th JPMC card, all of which I had acquired in the past 1.5 years. I finally hit the wall and was denied for too many recent accounts; my credit score was not an issue at all. I played it softly at first building a case for why I wanted this card (Ink Plus with the 60k bonus) and how it played a specific role in my credit card portfolio, but the CSR wouldn't budge. I eventually dropped the hammer and said something to the effect of: "As a J.P. Morgan Private Banking customer I was told I would receive top notch service. Should I have my banker call you directly? Or perhaps I should just take my business elsewhere." I was approved shortly thereafter by the CSR's supervisor.