What Happens to My Card if Chrysler Fails?

Use your points before they're gone.

By Joan Goldwasser, Senior Reporter

From Kiplinger's Personal Finance magazine, April 2009

Q: I have a Chrysler rewards card issued by Bank of America. What happens to my points if Chrysler liquidates?

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When we contacted Bank of America, the spokeswoman refused to speculate. As of now, she says, "there have been no changes to the Chrysler rewards program." That means you'll continue to earn five points for every dollar you spend at a Chrysler, Jeep or Dodge dealership with your Platinum Plus Visa (points may be used toward a vehicle purchase or lease, applied to a monthly payment, or used to pay for parts and service).

But David Robertson, publisher of the Nilson Report, a trade newsletter, believes your rewards points could be in jeopardy. "There is no other Chrysler, so there is no wiggle room for the bank to offer you a deal." His advice: Use up the points. That does not mean that Bank of America won't try to keep you as a customer. He says you can expect to be offered another rewards card along with a sweetener, such as an Amazon gift card, to persuade you to take the new card.

When Circuit City announced that it was liquidating its stores, Chase, which had issued a co-branded Visa card, offered cardholders a new rewards card. Customers who did not want the new card could pay off their balance at the existing rate and terms. Rewards points, which could be redeemed only in Circuit City stores, were accepted during the liquidation process.

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