LETTERS - First USA credit card complaints - Brief Article - Letter to the Editor

Kiplinger's Personal Finance Magazine, Dec, 1999 by Jane Anthony, Annelle Hamilton

GOTCHA!

I applaud you for your article about First USA credit cards ("Gotcha!" Nov.). We had a credit card w Chevy Chase Bank for more than years, but when First USA took It over, the hassles began. The most annoying error was when they added our annual rebate to our balance rather than subtracting it, then claimed we had to submit a grievance so they could investigate it. In numerous calls to customer service, I was never able to talk with a supervisor. Thanks to your article, I realized I was not alone, and took great pleasure in canceling the card. How fitting that in the process of canceling, I finally got to talk to a supervisor.

--JANE ANTHONY Reston, Va.

I, too, believe First USA deliberate held my payments in order to increase my rate to an unbelievable 27.1%. I have canceled the card, but where can I file a complaint?

--ANNELLE HAMILTON Charlotte, N.C.

EDITOR'S NOTE: You may write to the Better Business Bureau of Delaware (1010 Concord Ave., Wilmington, DE 19802). You'll need to enclose copies of your correspondence with First USA. Or contact the Office of the Comptroller of the Currency's Customer Assistance Group (800-613-6743; www.occ.treas.gov).

MUTUAL ADMIRATION

Thank you for your advice on investing in funds for children ("Money-Smart Kids," Aug.). As grandparents, we have given thought to opening an account for our oldest grandson, but procrastinated for more than three years. Your article helped us to select a fund, mail in the initial deposit and set up monthly bank-account debits. We are relieved to put this decision behind us.

--L. WAYNE WILPITZ JR. Dallas

PRIVATE COLLEGES

In the course of my academic career, I have attended two of the schools in your survey of private colleges ("Private Colleges Worth the Price," Sept.) and now teach at a large state university. I question your using the percentage of students returning for their sophomore year and the speed of graduation as measurements of quality. Elite private universities attract students from good-quality high schools, who will naturally be more likely to succeed in college. This indicator says a great deal about the students who come in, but little about the education they receive once in college.

--DAVID STONE Kansas State University Manhattan, Kan.

HOW THE PROS PICK STOCKS

What struck me most about your October story "How to Pick Stocks" was how poorly all four professional money managers you featured--except, perhaps, Robert Rodriguez--have done when their performance is measured against the benchmark Standard & Poor's 500-stock index. I have no doubt that these managers are intelligent, hardworking people, but their results, compared with Vanguard 500 Index fund, demonstrate that active portfolio management does not systematically add value. In fact, it usually subtracts value.

--PAUL BUELL Honolulu

EDITOR'S NOTE: The intent was not to glorify these managers or tout their funds, but rather to teach individuals how to pick stocks on their own, using time-tested, rational strategies. We have confidence that each manager's style is capable of market-beating performance, though not in every market cycle.

DIVORCE: NOBODY WINS

I was glad to see your article about money and divorce ("The Months Ahead," Nov.). While it has long been known that divorce is hard financially on women, everyone seemed to think men came out ahead. As a single father, I have seen little said about our side of the issue. As your article noted, men get few, if any, tax breaks. But the father's share of child support should be subject to some sort of tax relief, just as the mother's is.

--JOHN MCFADDEN Lexington, Ky.

CORRECTION

The November story "Investing Taken to Xtremes" misidentified the trading pits at the Chicago Board of Trade as the Chicago Mercantile Exchange.

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