Amtrak Guest Rewards

I realize, Mr. Toy, we have both posted our respective thoughts over at another railroad forum, but if we each assure we do not use same wording here as there, we can each share our thoughts with our membership here.

The tactics you note are being used throughout the credit card industry today. It is not any kind of discrimination by the issuer of the Amtrak affinity card, the Maryland Bank - National Association, or better known as MBNA America.

At one time, 18% was simply "the rate". However, of late the marketing strategy has been to vary rates, as well as assess stiff "naughty boy' penalties from anything for being over limit (that can happen even with no intentional or inadvertent act by the cardholder) to (much more justifiable) late payment. Additionally, the issuers can adjust a rate not only if the holder is in arrears with them, but also if they learn the holder is in arrears with any other grantor of credit. They can even raise a holder's interest rate if they think a holder has taken on too much debt elsewhere. Evidently, they are so "wired in' with the credit reporting concerns today, that they can make these determinations without any kind of a public event, such as a Bankruptcy, occurring.

However, on the 'flip side', one issuer recently circulated a promotional offer of 2.99% interest. But I would dare say anyone accepting that promotional offer had best be prepared to accept that one "slip up' regardless of however inococous such may be, and that rate will come to a quick halt.

No issuer is "picking on' any particular affinity card line, be it Mr. Toy's Amtrak card, or my Sister's "Save the Whales'. It is just how they are all marketing their products today.

Many thanks for the info on this thread. I received my notice today and was thinking "was I late somewhere along the line?" and now they are cranking my rate up??? At least I know I am not alone in getting this notice.

Obviously, the credit card companies have switched to a 'hardball' gear. I suspect that part of the blame goes to the newly signed bankruptcy law making it more difficult to declare bankruptcy and then go on your merry way again. I don't know the details of the new law, but my guess is that it also gives the credit card companies and other creditors the right to be much more aggressive in assessing late fees, cranking rates, etc. Obviously, if there were something in the new law the credit card companies didn't like, they would have lobbied strong enough to prevent it's being passed in Congresss.

My $.02 worth.

Credit-card companies have been in "hardball gear" for quite some time. What's different this time is that consumers are hitting some of those hardballs back. They are paying off their balances, as noted in this article in Slate. Take that, MBNA.

Mr. Toy wrote: A little research reveals that many MBNA customers have received the same notice, not just Amtrak Guest Rewards customers.

My Mother holds an MBNA issued card, albeit other than the Guest Rewards; she received the same Notice.

It's not just MBNA - the bank that handles Sears Mastercards is doing it to. I think the CC companies got some sort of gift in recent legislation, and they're all sticking it to their customers. Everyone I know with a credit card is getting these same notices.

Likely, many here are aware that Bank of America, now of Charlotte, NC after former NationsBank acquired the Calfiornia concers with that name, recently announced they will acquire Maryland Bank, National Association.

Their opponent in the bidding war was Wachovia Bank, also of Charlotte. However, Wachovia chose to withdraw leaving MBNA to BofA. The deal reportedly will likely close during the upcoming Fourth Quarter.

Today, The New York Times had an article exploring what Wachovia will move on next. Since both Wachovia and BofA have become national in scope by means of acquisitions and are concentrated in the retail sector, an acquisition move towards a retail operation by Wachovia is quite likely.

The Times suggested that Capital One, another large credit card issuer, could be in the X-hair. However, the Times noted that the MBNA cardholder base is of higher quality (presume that means higher lending quality) than is that of Capital One.

So, MBNA cardholders (they are the issuer of the Amtrak Guest Rewards affinity card), consider yourself in a more exclusive 'club' than that of Capital One cardholders. Lest we note, MBNA did not need to run absurd TV ads like 'ReNO in the CasiNO' or the Huns and Goths screaming "what's in your wallet' to have you sign up.

Disclaimers: author holds position in BAC within an IRA; holds an MBNA issued credit card other than the Amtrak affinity.

An easy way to stick it back to the card issuers is to never carry a balance. Unless of course you get a nice 0% offer with no balance transfer fees.

Also you can always ensure your payment is on time by paying it online. Goto the issuers web site, log on and click pay bill. You provide your checking account number and bank routing number. Payments are credited same day and they present an electronic check to your bank for clearance. You are given a reference number to track your payment.

Now that the check float is a thing of the past, its an easy way to pay at the last minute and ensure they receive it - plus it saves writing a check and paying for postage.

BTW - BofA has an automatic payment system, whereby you can schedule your bill to be paid every month in order to avoid any possible chance of late fees. You can choose the minimum, set amount, or in full.

...Chase would absolutely love it if I paid them online... They charge $11.95 for that "convenience"!

Chase only charges that fee for same day credit. There is another FREE option that will guarantee the payment and they tell you to schedule it 2 business days before the due date. Although the fist screen says 2-6 business days, the page that you actually schedule it on says to only allow 2 business days. I've never had a problem using it.

updrumcorpsguy wrote:It's not just MBNA - the bank that handles Sears Mastercards is doing it to. I think the CC companies got some sort of gift in recent legislation, and they're all sticking it to their customers. Everyone I know with a credit card is getting these same notices.

Yeah, I have a Sears Mastercard and I got the same notice. In addition, they added a service fee for transactions conducted in foreign currencies. So there goes my advantage on making credit card purchases in Canada when I am up there on my regular visits!

Volks, allow me to say thanks to MBNA's 'bad boy' cardholders for enabling them to offer me a 'way below prime" loan good until January.

As I noted off list to another Member, it appears that the credit card industry, MBNA et al, are further expanding the scope of their long established policies of having the 'bad boys' cross subsidize the 'good guys'. Once upon a time, the cross subsidy was simply limited to no annual fee and no interest if paid in full on time. Now that the issuers are 'tied in' to the extent they must be with the credit reporting concerns, a cardholder becomes a 'bad boy' if they are delinquent with anyone; and with the interest rate being adjusted accordingly.

While nothing would suggest that having made a purchase payable to a merchant in a foreign currency, a cardholder is a 'bad boy' , the experience reported by Mr. Silverliner would suggest that an innocuous foreign currency purchase has now become a profit center cross subsidizing my below prime loan. But then, I'm not a charity so I must wonder 'what's in it for them" to offer me a below prime rate. All I can conclude is that they are rolling the dice that I will 'slip up' some way so that they can give me a slapping with their version of "Tony Soprano points".

Dream on MBNA.

I agree Mr Norman, "what's in it for them".

All I can imagine is that on the zero%'s that I'm offerred, they are hoping that I do not pay them off on time, and thus can charge me in the 12-24% range after the promotional period is over.

Of course they forget that by the time the 6 month to 1 year promo period has elasped, I have already had so many more zero% offers from so many other lenders that my shredder is way over flowing.

Well, folks. it pays not to cave. In that is.

I sent MBNA a letter rejecting the change in terms, and indicating that while I enjoyed the card's benefits, they were free to cancel my account if they so decided. I got a letter back from MBNA today. It read in part "We honored your request not to change the terms of your account." They apologized for any confusion and then told me I would get 1% back on every purchase until August 31.

Lesson for today: Just because "They're all doing it" doesn't mean we all have to go along like sheep. Remember, without US they are NOTHING!

Hey everyone...i've been trying to figure out the Amtrak Zone structure and wanted to be sure I'm interpreting the zone structure correctly. According to the map given at

Amtrak Guest Rewards

am I to assume that the zones are represented by the squares. For example, a New York - Miami trip would be 6 zones (New York - Philadelphia, Philadelphia - Baltimore, Baltimore - Washington DC, Washing DC - Savannah, Savannah - Jacksonville, Jacksonville - Orlando, and Orlando - Miami)?

Only 3 zones total.
Eastern --- Central -- Western.
New York to Miami is one zone.
New York to San Antonio is two zones.
New York to Los Angeles three zones.