PenFed Rewards Point Change?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
User avatar
VictoriaF
Posts: 17410
Joined: Tue Feb 27, 2007 7:27 am
Location: Black Swan Lake

Re: PenFed Rewards Point Change?

Post by VictoriaF » Fri Aug 23, 2013 8:46 am

cflannagan wrote:Hopefully that was not premature - remember, even though points are now devalued, it's still effectively 4.25% cashback for gas, 2.5% for groceries. I would not use Penfed for "everything else" anymore...


PenFed used to offer excellent CD rates each January. Hopefully, they will resume the tradition.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

User avatar
cflannagan
Posts: 948
Joined: Sun Oct 21, 2007 11:44 am
Location: Palm Harbor, Florida

Re: PenFed Rewards Point Change?

Post by cflannagan » Fri Aug 23, 2013 8:52 am

VictoriaF wrote:
cflannagan wrote:Hopefully that was not premature - remember, even though points are now devalued, it's still effectively 4.25% cashback for gas, 2.5% for groceries. I would not use Penfed for "everything else" anymore...


PenFed used to offer excellent CD rates each January. Hopefully, they will resume the tradition.

Victoria


I got confused by your response, and reading back my own post, I realized I said it poorly:

I meant to say I will no longer be using the Penfed Platinum Rewards card for "everything else" purchases - which used to be 1% but is now devalued to under that, so other reward cards of mine is now the better choice for "everything else" purchases (anything that does not fall into categories covered by higher-than-1% cashback rewards).

astrohip
Posts: 425
Joined: Tue Dec 21, 2010 4:29 pm
Location: Houston TX

Re: PenFed Rewards Point Change?

Post by astrohip » Fri Aug 23, 2013 9:01 am

While it does us no good now, they temporarily changed the reward structure back about a day after this hoopla. I immediately went and redeemed all my points, at a 1:1 ratio. 55,000 points!

I was hoping that had permanently reverted, but it seems not.

This is probably a good time to review my entire cc process, and figure out which cards to use in each situation.
"Happiness is not about doing, it’s about being." - R Branson

DetroitRed
Posts: 175
Joined: Tue May 17, 2011 4:16 pm

Re: PenFed Rewards Point Change?

Post by DetroitRed » Fri Aug 23, 2013 9:47 am

I've been a loyal and long-standing PenFed customer for many years.

This situation with the Visa card (multiple changes snuck through with little notice and no information given to the customer service agents) is horrible.

I can only conclude they are trying to get rid of long-standing, loyal customers like me. I don't want to have to read every piece of correspondence from them with a fine-toothed comb. I've got better things to do with my time.

If they are going to make changes, why is it so hard to give proper notice and inform your customer service agents about it?

camaro327
Posts: 227
Joined: Fri Dec 21, 2012 11:04 am

Re: PenFed Rewards Point Change?

Post by camaro327 » Fri Aug 23, 2013 10:56 am

DetroitRed wrote:This situation with the Visa card (multiple changes snuck through with little notice and no information given to the customer service agents) is horrible. I don't want to have to read every piece of correspondence from them with a fine-toothed comb. I've got better things to do with my time.If they are going to make changes, why is it so hard to give proper notice and inform your customer service agents about it?


I cashed in rewards last Friday, since I could only get a $50 for 6,100 points, one day later back to 5,000, now 5,900.

I called rewards CS on Saturday and she didn't care tha it had switched back and forth. She said we can change it at anytime and you already cashed out on Friday.

I called PF and my experience matches. CSRs were clueless. I don't blame them however, it's whoever actually who cooked these changes up without notice.

This is poor even CapOne gave me notice when they changed their rewards program a few years back.

User avatar
danwhite77
Posts: 408
Joined: Thu Mar 08, 2012 9:21 am

Re: PenFed Rewards Point Change?

Post by danwhite77 » Fri Aug 23, 2013 11:12 am

gkaplan wrote:This thread, and others like it, just reaffirms my conviction that chasing after reward cards is fruitless. I'll just stick with the MasterCard I have had for the past forty-five years.


Call it an Icarus effect. If you reach for the 2%+ cashback cards, eventually the wax on your wings melts. I, however, have been very happy with Capital One at 1.5% (which I started using after Schwab killed its 2% card a few years ago). Of course, now that I've put up this post I've probably jinxed it.
"While some mutual fund founders chose to make billions, he chose to make a difference." - Dedication to Jack Bogle in 'The Bogleheads' Guide to Investing'.

User avatar
JamesSFO
Posts: 2868
Joined: Thu Apr 26, 2012 10:16 pm

Re: PenFed Rewards Point Change?

Post by JamesSFO » Fri Aug 23, 2013 12:09 pm

cflannagan wrote:Hopefully that was not premature - remember, even though points are now devalued, it's still effectively 4.25% cashback for gas, 2.5% for groceries. I would not use Penfed for "everything else" anymore...


Except the expectation is that it will go to 3/2/1, and then you have to discount those 20% at which point only the 3% gas earning is ahead of a 2% cashback card like the Fidelity AMEX.

User avatar
cflannagan
Posts: 948
Joined: Sun Oct 21, 2007 11:44 am
Location: Palm Harbor, Florida

Re: PenFed Rewards Point Change?

Post by cflannagan » Fri Aug 23, 2013 12:14 pm

JamesSFO wrote:
cflannagan wrote:Hopefully that was not premature - remember, even though points are now devalued, it's still effectively 4.25% cashback for gas, 2.5% for groceries. I would not use Penfed for "everything else" anymore...


Except the expectation is that it will go to 3/2/1, and then you have to discount those 20% at which point only the 3% gas earning is ahead of a 2% cashback card like the Fidelity AMEX.


Yes, I'm aware of that, thus my "until who knows when" comment. Meanwhile, as long as Penfed card still gives me best cashback for gas and groceries, I'm going to milk it for all it's worth until it's no longer worth it.

Jack44
Posts: 26
Joined: Fri Apr 02, 2010 9:21 am
Location: Pennsylvania

Re: PenFed Rewards Point Change?

Post by Jack44 » Fri Aug 23, 2013 12:30 pm

sperry8 wrote:I kept my 5% cash back PenFed gas card - and I'm happy I did. Still getting 5% cashback on Gas. And that's all I use the card for.

Me too.....it's now strictly a gas card and one other card for all else. I find it really tedious to keep up with all these competing offers, which change so often you are constantly searching for another. From now on I'll keep it simple as my time is better spent elsewhere.

User avatar
JamesSFO
Posts: 2868
Joined: Thu Apr 26, 2012 10:16 pm

Re: PenFed Rewards Point Change?

Post by JamesSFO » Fri Aug 23, 2013 12:35 pm

cflannagan wrote:
JamesSFO wrote:
cflannagan wrote:Hopefully that was not premature - remember, even though points are now devalued, it's still effectively 4.25% cashback for gas, 2.5% for groceries. I would not use Penfed for "everything else" anymore...


Except the expectation is that it will go to 3/2/1, and then you have to discount those 20% at which point only the 3% gas earning is ahead of a 2% cashback card like the Fidelity AMEX.


Yes, I'm aware of that, thus my "until who knows when" comment. Meanwhile, as long as Penfed card still gives me best cashback for gas and groceries, I'm going to milk it for all it's worth until it's no longer worth it.


Fair enough. I called again today (haven't heard back from emailing CEO/chairman back) and they claim an email/letter is supposed to go out next week. To which I rolled my eyes a bit, cause what it would have been too hard to tell people last month??

User avatar
cflannagan
Posts: 948
Joined: Sun Oct 21, 2007 11:44 am
Location: Palm Harbor, Florida

Re: PenFed Rewards Point Change?

Post by cflannagan » Fri Aug 23, 2013 12:39 pm

JamesSFO wrote:Fair enough. I called again today (haven't heard back from emailing CEO/chairman back) and they claim an email/letter is supposed to go out next week. To which I rolled my eyes a bit, cause what it would have been too hard to tell people last month??


Agreed. This is so not like the Penfed that I thought I knew. Pretty surprising revelations in the last few days.

Its like they want to act like Wells Fargo or BOA all of sudden, gouging out their customers, rather than act like the credit union we thought we knew.

Suffice to say, Penfed has lost points for me in the trust department. They better not modify any of the terms of zero-closing-cost refi that has been done earlier this summer (although I'm fairly sure there's laws against doing something like that with mortgages in general).

User avatar
JamesSFO
Posts: 2868
Joined: Thu Apr 26, 2012 10:16 pm

Re: PenFed Rewards Point Change?

Post by JamesSFO » Fri Aug 23, 2013 7:15 pm

cflannagan wrote:Agreed. This is so not like the Penfed that I thought I knew. Pretty surprising revelations in the last few days.

Its like they want to act like Wells Fargo or BOA all of sudden, gouging out their customers, rather than act like the credit union we thought we knew.

Suffice to say, Penfed has lost points for me in the trust department. They better not modify any of the terms of zero-closing-cost refi that has been done earlier this summer (although I'm fairly sure there's laws against doing something like that with mortgages in general).


I have to say this is the part that really chafes at me, would it really have been that hard to send a note to all customers on say 8/1/2013 saying that on 8/31/2013 such and such change would happen?

Even a small startup I was at that was on the verge of shutting down tried to do better by its customers when we had to suddenly shutdown our service. We ended up finding a way to give customers 30 days notice PLUS about 6 months worth of service credits to use like a gift card elsewhere. Crappy? Yes. Perfect? No. A lot better then this sort of BS where the CSRs and the supervisors really don't seem to be even aware there is a change.

smawley
Posts: 1
Joined: Thu Sep 19, 2013 4:32 pm

Re: PenFed Rewards Point Change?

Post by smawley » Thu Sep 19, 2013 4:39 pm

Having been away on orders w/ the Navy, I just found out about this. And like most others am pretty irritated. CS has been of no use whatsoever and I expect no resolution at this point. However, as it has been pointed out this behavior is more characteristic of banks. While their behavior is not illegal (read unethical) it is certainly not moral (read right). The lesson to be learned is that you can indeed put a price on integrity.

DetroitRed
Posts: 175
Joined: Tue May 17, 2011 4:16 pm

Re: PenFed Rewards Point Change?

Post by DetroitRed » Thu Sep 19, 2013 6:38 pm

I've recently received a Fidelity AMEX (2% cash back) and have relegated my PenFed visa to the back of the wallet.

Post Reply