Reason for Cobal Card Discontinuing

Discussion in 'Credit Talk' started by Voyager, Oct 29, 2001.

  1. Voyager

    Voyager Well-Known Member

    One possible reason why the Cobalt went out of business may be due to the theft of checking and credit card account numbers. I heard from a source that Cobalt was losing money due to fraud.

    You be the judge. I will miss my cobalt.
  2. Cadillac408

    Cadillac408 Well-Known Member

    That makes NO SENSE AT ALL!

    Some people had to submit DNA samples practically to get this card (to verify their identity). Do you think they would be STUPID enough to fund their card w/ a HOT credit card or fraudulent checking account???? It would all come back on them bigtime and from what I've learned in the past, AMEX don't play FRAUD.......PERIOD!

    There has to be another reason????
  3. Momof3

    Momof3 Well-Known Member

    Well maybe they are run by the same baboons that do membership banking!!!
  4. dogman

    dogman Well-Known Member

    American Express Financials.....

    probably abruptly ended after the current AMEX cash crunch, due to a variety of factors. They were hit very heavily by NYC losses. Additionally, their bad debts are rising - clearly showing the dot.commer who had a Platinum Card last year probably now didn't even have a card.

    They will obviously be fine - they are AMEX - a brilliant institution! Read Businessweek 2 weeks back for a complete story on AMEX.

    Now was not the time for them to poor money into a tiny % "experimental restorable credit card." They need cash flow - particularly with people NOT SPENDING or charging at anywhere near last year's rate.

    I liked Cobalt - I will keep it for the old credit card archive - next to my original brochure for the 1965

    Later Cobalt - rest well beneath that Cobalt Blue sea!

    Turning the tides to the next subject - dogman
  5. PsychDoc

    PsychDoc Well-Known Member

    Re: American Express Financials....

    I called the Stored Value Group (in Utah) and spoke to someone who implied that the partnership with that bozo group in San Francisco that came up with the idea for the CobaltCard -- Zowi Corporation -- was a marriage made in hell. This individual further mentioned that American Express wants to issue a general stored value card (like CobaltCard) on its own and that I should look for that in 2002.

  6. dlo64

    dlo64 Well-Known Member

    If I remember correctly it was Nana and I that had to submit those DNA samples! All the trouble we went through to prove we were not alien beings to get that card.

    This so disappointing.

    GEORGE Well-Known Member

    INCREASE MY AMEX BLUE CREDIT LIMIT AND/OR reduce my interest rate on BT and purchases to less than 9.99%...I WILL SPEND MONEY!!!
  8. Marie

    Marie Well-Known Member

    when is this effective? I hadn't heard of this.
  9. brad

    brad Well-Known Member

    We regret to inform you that on November 19, 2001, the CobaltcardTM program will be discontinued. Please see below for details on how this will occur in phases over the next several weeks.

    October 29, 2001

    First, as of October 29, 2001, you will only be able to load funds onto your Cobaltcard for emergency situations. You may continue to visit the Cobaltcard Web sites at and to view your card balance and card activity until November 30, 2001. We apologize if this is an inconvenience.

    Emergency funding will only be available through November 5, 2001. Please contact Cobaltcard Customer Service for further information at 888-814-9097.

    November 19, 2001

    Second, as of November 19, 2001, you will no longer be able to use your Cobaltcard to make purchases on the Internet or at retail locations that accept American Express. You may visit the Cobaltcard Web sites at and to view your account balance and activity until November 30, 2001.

    November 30, 2001

    Third, as of November 30, 2001, the Web sites and will no longer be accessible. We suggest that prior to this date you print a copy of your activity register and statement pages for your records.

    December 10, 2001

    Starting on December 10, 2001 we will refund to you the remaining balance on your Cobaltcard. We will issue this refund to the funding source you used in your last loading transaction. If this source was a credit card, you will receive your refund in the form of a credit to your credit card account by December 21, 2001. After this date, you should call your credit card issuer to confirm that your refund was posted to the account. If the last source used was a checking account, you will receive your refund in the form of a check delivered to the address registered on your Cobaltcard profile. If your address has changed since you enrolled for a Cobaltcard, you will need to contact Customer Service at 888-814-9097 to provide us with your current information. Please allow up to 30 days from December 10, 2001 to receive your refund check.

    We would like to remind you that American Express and Zowi Corporation will uphold the Cobaltcard Privacy Policy during and after we discontinue the program. For any further information, please visit the Web sites' login pages.

    Both American Express and Zowi Corporation thank you for your participation in the Cobaltcard program.

    Below you find the answers to some important questions regarding the discontinuation process.

    Q: Why is Cobaltcard being discontinued?

    A: Both Zowi and American Express have decided to refocus their existing resources. Zowi, which provided the technology and marketing for the Cobaltcard product, is expanding its state of the art stored value card platform and working with large providers of financial services to enable them to deliver stored value products through their channels and customers. American Express wants to focus on other opportunities within the stored value arena.

    Q: Is my personal information safe, including credit card and checking account information?

    A: Yes. American Express and Zowi Corporation will uphold the Cobaltcard Privacy Policy during and after the discontinuation of the program.

    Q: Will I be paid interest or receive any compensation for the loss of use of the product?

    A: No.

    Q: What if I have a merchant dispute?

    A: As explained in the Cobaltcard Terms and Conditions, you should address the merchant directly if you have any disputes. Cobaltcard Customer Service, 888-814-9097, can help you in gathering any data required or relevant to support your dispute with the merchant.

    Q: What if I want or need to add additional funds onto my Cobaltcard?

    A: At this point, you are no longer able to load additional funds. Any remaining funds will be refunded you sometime after December 10, 2001. If you have circumstances which require the funding of your card, please contact Cobaltcard Customer Service at 888-814-9097. These emergency requests will be available only through November 5, 2001. We apologize if this is an inconvenience.

    Q: What if I don't have enough money on the card to make a purchase?

    A: There are some stores that will allow you to make a partial payment using the remaining funds on your card. For example, if you have $3.00 left on your Cobaltcard and you would like to purchase an item for $20.00, a store may charge $3.00 to your Cobaltcard and allow you to pay the remaining balance using another payment method, such as cash. Alternatively, if you cannot use the remaining funds on your card, we will refund this amount sometime after December 10, 2001.

    Q: Who owns the cardholder names and other data?

    A: Zowi and American Express jointly own the customer data, but both parties will abide by the Terms and Conditions and Privacy Policy outlined in the Web sites, which include no third party data sharing.

    Q: Will American Express launch another teen product?

    A: American Express does not comment on its potential new ventures. American Express is committed to exploring opportunities in the growing stored value arena.

    Q: Can I get another stored value card from American Express?

    A: At this point, American Express does not offer a similar stored value product to the Cobaltcard. However, it does have other stored value products that may address some of your needs, such as the American Express® Travelers Cheque and the American Express® Gift Cheque. To learn more about these products, please visit American Express' Web site at

    Q: Why will it take 30 days to get a refund?

    A: Some refunds may take up to 30 days to process given potential delays during the December holiday season. However, we expect most of refunds to be processed within a shorter timeframe. If you have changed your home address since you enrolled for the Cobaltcard, you will need to contact our Customer Service group and provide us with your current information.

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