@Fintan
The bait part of the bait and switch worked for many people, unfortunately.
When you called to ask why your card was closed, what did they say? You did call, right? Before posting this?
Lake said:
When you called to ask why your card was closed, what did they say? You did call, right? Before posting this?
Yes, I called. They said it was done by their system. The person on the phone wasn’t very helpful; they just kept saying ‘okay’ to me and telling me to wait.
@Taron
Did you wait? Even if it’s dubious, there is usually an official reason why an active account was closed.
I’m not saying you did something wrong… just knowing what they say you did makes for a more informative discussion.
@Lake
On the phone, they told me I would receive an update within 7 days. I assume this will come by mail since my customer support contact feature has been removed from both apps.
Taron said:
@Lake
On the phone, they told me I would receive an update within 7 days. I assume this will come by mail since my customer support contact feature has been removed from both apps.
Make sure to give us the update within 7 days.
I knew this card was a load of garbage.
SlopRules said:
I knew this card was a load of garbage.
This broker
Yeah, this is why I don’t deal with fintech cards. There’s always a huge catch. They look nice but they end up causing you trouble.
No idea why people are still getting this card. People with legit high credit charges are getting closed.
Shocker! Every flat cashback card over 2% offered has either been shut down or restricted (like AOD, Ollo, etc.). It’s an unsustainable offer for the lender for anyone not carrying a balance and paying interest. While many getting shut down are violating terms and conditions, it shouldn’t surprise anyone that someone costing Robinhood money is getting shut down. I wouldn’t touch this card.
@Jean
This ^^^. It sounds like you did nothing wrong.
Many people did abuse the card and break the terms, but you seem to be the exception since you have a high income and high spending, as shown by your $50,000 limit.
They didn’t think it through when they opened your account, but they were never going to make money giving you 3% back on everything if you aren’t carrying a balance, so they are exercising their right to shut you down for any reason or none.
That said, deciding afterwards that you broke their terms, just because they say so, shouldn’t give them the right to take back rewards you already earned. I believe a CFPB complaint will result in you getting a check for the cashback they withheld after closing your account.
And, yeah, for everyone else, this is Robinhood. There’s no free lunch with them.
Or even ethical business dealings. Just ‘free’ trades that cost more in poor executions due to payment for order flow than a straightforward commission elsewhere.
Or a 3% cashback card that you only get to keep if they can earn more than that from your other business. Very clear-cut.
Nothing wrong with them wanting to make money, but treating you poorly while pretending it’s all good is another thing.
If this is how they treat someone who referred them 10+ people and keeps a six-figure brokerage account with them, an average person just looking for 3% cashback on purchases that don’t earn a better rate elsewhere doesn’t stand a chance. Unless they plan to carry balances to let Robinhood earn more than the 3% back. Just like their payment for order flow brokerage model.
And, of course, in hindsight, churners and manufactured spenders should have seen it coming because it should have been clear that the people behind Robinhood are too smart to let themselves be taken advantage of.
But regular folks using the card as intended are getting hurt by Robinhood not delivering on its promises. They seem to want to profit off every single account, which is unrealistic in this space where savvy users will find ways to earn more than they give.
Hopefully, people will learn to stop doing business with Robinhood.
Arley said:
Hopefully, people will learn to stop doing business with Robinhood.
Narrator: they will never learn.
They’re called Robin-da-hood for a reason.
The credit card and their 401k match sounded appealing to me, but I refuse to do business with them.
It’s a known scammy company, so this doesn’t shock me. This sounds just as shady as Credit One.
In fairness, no credit card could support 3% cashback on everything anyway. It’s a real gimmick.