Perkstreet Financial started in 2010 as a plucky internet bank start-up that told us credit cards were dangerous and unethical, and you should use a trusty debit card instead. They offered attractive features like 2% cash back on all purchases and 5% cash back on special categories. But then new laws were enacted that limited debit card merchant fees, and Perkstreet took a hit to their main revenue source. On August 12th, they announced that they were shutting down. Oh, and all that cash back “Perks” that their customers earned? Gone with zero prior notice. *Poof*
Consistent with the terms of our Rewards Program Agreement, we have discontinued our perks program and cancelled all perks balances as of today, August 12, 2013.
Consistent with what terms? Wait, I thought you said you were trustworthy? They meant this part:
The Rewards Program and its benefits are offered at our sole discretion. We reserve the right to cancel, terminate, change or temporarily suspend the Rewards Program and to amend this agreement at any time without notice.
Translation: We can do whatever the %(#& we want. But you can’t.
I never had an account with Perkstreet and didn’t lose anything, but many people did. This is a good opportunity to talk about rewards programs in general. Some thoughts: