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I feel compelled to speak about a "Kol Koreh" signed by a number of Rabbis making the rounds and being published together with an alleged "translation" or "explanation" of the hebrew side.
On the Hebrew side it speaks out against the credit card application farms and their methods as I wrote in point 2 here: http://www.dansdeals.com/archives/46584

However on the English side the author writes out against buying gift cards and every other method of manufactured spend to earn miles.

I figured it was worth investigating what exactly the Rabbis signed off on.  I called and asked Rav Shmuel Kamenetsky, the Rosh Yeshiva in Philadelphia, whether he agreed with the English side.  He said he never saw an English side and that it was terrible that it would imply that he was agreeing with anything that wasn't explicitly written on the Hebrew side.  And he said that it has to be corrected so that people don't get that impression.

He does not feel that "all methods of manufacturing spend for miles are abusive," and indeed if there are legal ways to do it, then people should go right ahead and earn the miles.

I also called Rav Dov Kahan, founder of Bais Din Maysharim in Lakewood.  He also did not agree that "all methods of manufactured spend are abusive" but felt that methods in which each party (the store and the credit card in the case of a gift card purchase) say that you can do so and it's not against any of their terms, would be permissible and that isn't what the Kol Koreh was targeting.

-Dan




Reply #194
Rav Kamenetsky just called me back.

He says aderaba, if people can find a way to purchase miles via stores who charge for gift cards and and they can get miles then good for them.  Nothing wrong with that kind of MS at all and he had no idea why the author would deceive him like that.

The problem he signed against was the companies opening cards for people and their methods, nothing else.


Reply #280
The only kind of MS that R' Kaminetzky said isn't "yashur" and that he was signing onto was for refundable items.

He wasn't told anything about any other kind of MS.





« Last edited by Dan on July 10, 2014, 09:49:35 PM »

Author Topic: Kol Koreh against MS  (Read 93935 times)

Offline Redbull3

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Re: Kol Koreh against MS
« Reply #420 on: July 10, 2014, 11:18:19 AM »
May I make the assumption that you don't have a business of your own?

I can tell you from personal experience: Almost every last penny spent on my Chase Ink Business Credit Cards, is spent for business purposes, on 5 x rewards categories. That's close to half a million dollars last year alone. Chase is glad to keep me as customer. Yes, I did buy some, but very few GCs.

I guarantee you they are not, if those facts are true. Why would they be? They are probably going out of their way to entice and target people not like you. They want people who revolve and don't pay back the balance, or at the very least to mix in non-5x behavior.

ETA: didn't realize the 50k limit thing - yes they are happy to have you if they gave you 700k rewards for 500k spend.
« Last Edit: July 10, 2014, 11:27:16 AM by Redbull3 »

Offline tomim

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Re: Kol Koreh against MS
« Reply #421 on: July 10, 2014, 11:25:31 AM »

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Re: Kol Koreh against MS
« Reply #422 on: July 10, 2014, 11:27:58 AM »
^^^

Offline ybeeds

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Re: Kol Koreh against MS
« Reply #423 on: July 10, 2014, 11:29:03 AM »
I guarantee you they are not, if those facts are true. Why would they be? They are probably going out of their way to entice and target people not like you. They want people who revolve and don't pay back the balance, or at the very least to mix in non-5x behavior.
All I can say to prove my point is that my local chase bank treats me VERY well, and They kept on approving my additional applications for more cards when I maxed out on my previous ones... my credit line with them is very very high. I never got that feeling of them being unhappy with me, but rather the contrary.
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Offline Redbull3

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Re: Kol Koreh against MS
« Reply #424 on: July 10, 2014, 11:39:16 AM »
All I can say to prove my point is that my local chase bank treats me VERY well, and They kept on approving my additional applications for more cards when I maxed out on my previous ones... my credit line with them is very very high. I never got that feeling of them being unhappy with me, but rather the contrary.

I don't work for Chase but TBH, I don't understand how Ink has a profitable portfolio considering the massive gaming. But assuming you are someone who spends just 50k at office stores, or better yet you are like most of us who just open the card for points, spend 5k and close, you are not someone they want in their portfolio. To someone in marketing or finance, you are unprofitable. We are the exception in the PNL (assuming it's even profitable overall), offset by all the revolvers and high non-category spenders.

Of course they will treat you well in the branches - it's not like they are sophisticated enough to treat different segments differently. Even the entirety of cards is only a portion of Chase - business is a subsegment of that - high spending business a further subsegment and someone with the unique, category maximizing tendencies is rarer still. And your credit line is determined by risk - spend a lot, pay on time and avoid risky behavior (prepaying, other things) and you should have a high credit line to encourage more spending.

Offline ybeeds

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Re: Kol Koreh against MS
« Reply #425 on: July 10, 2014, 11:47:39 AM »
I don't work for Chase but TBH, I don't understand how Ink has a profitable portfolio considering the massive gaming. But assuming you are someone who spends just 50k at office stores, or better yet you are like most of us who just open the card for points, spend 5k and close, you are not someone they want in their portfolio. To someone in marketing or finance, you are unprofitable. We are the exception in the PNL (assuming it's even profitable overall), offset by all the revolvers and high non-category spenders.
No need for assumptions... I posted my Ink CCs spending habits already...
I can tell you from personal experience: Almost every last penny spent on my Chase Ink Business Credit Cards, is spent for business purposes, on 5 x rewards categories. That's close to half a million dollars last year alone. Chase is glad to keep me as customer. Yes, I did buy some, but very few GCs.
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Offline Redbull3

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Re: Kol Koreh against MS
« Reply #426 on: July 10, 2014, 11:48:42 AM »
No need for assumptions... I posted my Ink CCs spending habits already...

I know but case could be made you are profitable so I was theorizing a different type of customer.  :)

Offline ybeeds

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Re: Kol Koreh against MS
« Reply #427 on: July 10, 2014, 11:53:15 AM »
I know but case could be made you are profitable so I was theorizing a different type of customer.  :)
To say the least, I'm probably not profitable at all to staples... just trying to prove the point that Chase doesn't care.
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Offline churnbabychurn

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Re: Kol Koreh against MS
« Reply #428 on: July 10, 2014, 11:54:32 AM »
The flier is in the Lakewood courier package again...
 

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Re: Kol Koreh against MS
« Reply #429 on: July 10, 2014, 11:55:21 AM »
That is anecdotal evidence at best. Not "proof".

Is it at all possible that chase does care, just they chose not to spend resources on going after a couple of people?

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Re: Kol Koreh against MS
« Reply #430 on: July 10, 2014, 11:58:04 AM »
That is anecdotal evidence at best. Not "proof".

Is it at all possible that chase does care, just they chose not to spend resources on going after a couple of people?
Like I said, if they really cared they would tell the blogs to stop talking about it.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

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Re: Kol Koreh against MS
« Reply #431 on: July 10, 2014, 12:01:19 PM »
Like I said, if they really cared they would tell the blogs to stop talking about it.
Not only that, but they would stop advertising on DD and other similar sites
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Re: Kol Koreh against MS
« Reply #432 on: July 10, 2014, 12:04:09 PM »
Again, that is anecdotal evidence at best. (Which I happen to personally believe is pretty strong.) Still not "proof" though.

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Re: Kol Koreh against MS
« Reply #433 on: July 10, 2014, 02:43:15 PM »
Yesterdays problem was Abuse by Rabbis. Todays problem: Abuse of Rabbis

Daas Torah has been severely cheapened. What a shame...

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Re: Kol Koreh against MS
« Reply #434 on: July 10, 2014, 03:29:37 PM »
Didn't I read something in boarding area recently about focus groups on ink card without 5x earnings?

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Re: Kol Koreh against MS
« Reply #435 on: July 10, 2014, 03:31:02 PM »
I don't work for Chase but TBH, I don't understand how Ink has a profitable portfolio considering the massive gaming. But assuming you are someone who spends just 50k at office stores, or better yet you are like most of us who just open the card for points, spend 5k and close, you are not someone they want in their portfolio. To someone in marketing or finance, you are unprofitable. We are the exception in the PNL (assuming it's even profitable overall), offset by all the revolvers and high non-category spenders.

Of course they will treat you well in the branches - it's not like they are sophisticated enough to treat different segments differently. Even the entirety of cards is only a portion of Chase - business is a subsegment of that - high spending business a further subsegment and someone with the unique, category maximizing tendencies is rarer still. And your credit line is determined by risk - spend a lot, pay on time and avoid risky behavior (prepaying, other things) and you should have a high credit line to encourage more spending.

It's true that people who only spend on 5x categories are unprofitable for banks. (But less so than you might think, because even 5x players earn the banks money on transaction fees.)

However, the reason banks still market it, even at the risk of the outliers (read: savvy consumers) is because of the people who think themselves savvy and then end up being swallowed by the large bottomless pit that is carrying interest. Those types of people are the ones who more than subsidize the awards that are being offered and delivered to the 5x players (which is also capped by the 50K). Want proof? Look at Chase's financial statements. Chase isn't stupid.
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Offline Redbull3

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Re: Kol Koreh against MS
« Reply #436 on: July 10, 2014, 03:32:47 PM »
Yep. That's what I mean. They offset us.

Offline AJK

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Re: Kol Koreh against MS
« Reply #437 on: July 10, 2014, 03:35:13 PM »
No, it's not offset. It's more than offset.

We laugh. They laugh. The carriers cry.
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Offline Redbull3

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Re: Kol Koreh against MS
« Reply #438 on: July 10, 2014, 03:45:58 PM »
No, it's not offset. It's more than offset.

We laugh. They laugh. The carriers cry.

Yes of course - I meant to imply that lol.

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Re: Kol Koreh against MS
« Reply #439 on: July 10, 2014, 03:57:44 PM »
Ok, so how is this different then exploiting any other loss leader?

Shouldn't they either both be mutor or both be ossur?