Wells Fargo's BAIT N SWITCH: A story of false advertising

There, I have said it. I don't feel any better but I feel justified to yell out from the top of the roof that Wells Fargo Bank did a BAIT AND SWITCH on, not just me, but also a number of small businesses this past year.

Let me explain how some small businesses rotate their monthly payments. As a roofing contractor, I go to my roofing supplier and open an account. Most wholesale suppliers will give me, the small business owner, a 1 to 2 percent discount if I pay the previous month's outstanding balance off early WITH CASH OR CHECK. This is because credit card companies charge merchants 1 to 2 percent and by paying cash, my supplier is passing on their savings to me, their friendly small business dude.

To counter this, credit card companies make special offers to small businesses. This is similar to the terms offered by Discovery Card, meaning, a certain percentage of your purchases is given back to you as a cash back/credit. They mail these offers out, with different percentages, attractive enough to catch the attention of small businesses.

Now, why would a small business change from paying cash/check to his supplier to using a credit card? Most small businesses don't get paid till after the job is done, and with a big project, this can be over 30 days, thus there's no savings to be had from the suppliers. So, with a credit card, the businessman can still earn a 1 to 2 percent cash back for the year.

An attractive offer, yes? As you know, I was on a big project the last year that provided exactly this scenario where I didn't have the cash on hand for an early payoff cash back through my supplier.

ENTER WELLS FARGO MAIL OFFER.

(At this point, I should insert my famous GREEK CHORUS wailing in the background: OH NOoooeeees! It be a Bait and Switch, honey!)

The offer was an attractive package of a grade that goes from 1 to 3 percent, depending on how much I charged on the account. I called up and the nice "banker" person was very friendly, answering my questions and taking my application. Through this conversation, in Feb 2007 sometime, I specifically told him I received their offer through the mail, the one that showed the rebate, and even gave him some number on top of the mailer. He explained to me exactly how it worked, and yes, it was exactly how I understood it.

My application was approved. Throughout 2007, I used the WELLS FARGO credit card to pay off my monthly balances at my suppliers. Even when I had the cash on hand (and could have gotten my 1 percent cash back), I figured I'd keep using the card because I'd already set up this system, and besides with WELLS FARGO, I get the incentive of 1 more percent. One more percent of $250,000 of building materials add up, girlfriends.

Well. Today, I called WELLS FARGO to ask about my rebate because it's now one year since I received my card. The "banker" person, friendly as ever, told me that I HAVE MISUNDERSTOOD and that I was on the OLD PROGRAM in which everything was capped at $500. The new program starts THIS YEAR, she said.

I said, "What old program? I signed up for the program you're explaining to me now."

She said, "No, ma'am, you signed up for the old program."

I said, "I never signed up for any old program because I never KNEW THERE WAS AN OLD PROGRAM. All I know is this program with the same rebate system you're telling didn't start till this year."

She said, "Yes, we switched this year."

I said, "I don't care when you switched. I never applied for your pre-switched program. When I applied, I had a mail offer that gave me back cash with no cap."

She said, "Ma'am, unfortunately, we switched that to this year."

I said, "So you're admitting you did a bait-and-switch on me then."

She said, "No, ma'am, unfortunately, we seem to have a communication problem."

I said, "No, I don't have any problems communicating. All I know is, I signed up for a WELLS FARGO credit card when they sent me a mailer with an offer of 2 percent rebate with no cap and now after a year, WELLS FARGO is telling me the rebate is capped at $500."

She said, "Ma'am, you'll have no cap this year."

I said, "What good does that do me now? If I had known last year that you baited and switched your initial offer, I would have at least made sure to get some cash back from my own supplier."

She said, "Ma'am, unfortunately (she liked to use this word a lot), I can't do anything. You're not getting any rebate other than the $500. This year would be different, though."

I said, "This year would be different because I'm not going to let WELLS FARGO bait and switch me again."

She said, "Unfortunately, we have a language barrier. I know you're frustrated, but you don't seem to be able to understand that you signed on to a different program."

I said, "Oh, I understand the language pretty well. You changed your terms after accepting my application. The mailer you sent out to me, the one with all those attractive terms? It didn't say anything about a $500 cap. That was just a come-on. Now, you're telling me that Wells Fargo put me on the "old" program. THAT, my dear, is the universal language for bait and switch."

At which point, said "banker" put me on hold for about 45 minutes. Came back and we went through this again. She wanted me to send her the "offer" mailer. I was, like, who keeps those mailers around?! What I have, I told her, was their letter of acceptance on which nothing was mentioned of any old program of a $500 cap. Then another 45 minutes hold. Her supervisor, she said, COULD NOT FIND my application package where I signed for this $500 capped thingie. Damn, could it be BECAUSE I APPLIED BY PHONE and they just sent me a "CONGRATULATIONS, YOU'RE ACCEPTED" letter after that?

Guess who: "Unfortunately, you must have misunderstood the terms, ma'am."

Guess who: "How could I have misunderstood terms that weren't on a mailing offer for which I applied? The initial banker never told me about any "previous cap." In fact, I asked him about the 2 percent...(I'm repeating myself, so I just shook my head here. Took a deep breath here.)...never mind. You're just going to "unfortunate" me to death. Can you please give me an address to send a letter of complaint, please? AND if this is a recorded conversation, I'd like to repeat: WELLS FARGO did a bait and switch with their cash back program. Lastly, judging from what you told me, about switching to the no-cap program this year, that tells me that you have been getting similar phone calls from similarly unfortunate businessmen and women with language problems."

So, yeah, I'm printing this blog out and sending it to the Vice President and Presidents of Wells Fargo (THANK YOU, ORACLE OF GOOGLE). Yeah, you, Mr. Falkenberg and yo, Mr. Shippee and Blenner. 2 percent of a few hundred thousand dollars may not sound a lot compared to a CEO's salary, but you stole that from me today. And from a currently non-working roofer, and UNFORTUNATELY my language is not very polite today, YOU SUCK. Wells Fargo SUCKS. I bet there are many of us right now, whose cheated money you're now spending on your new vacation villas, who think so too.

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