REI and VISA - Credit has its Cost

REI VISA Card is a bear trap
of interest charges and extra fees

One thing that really grips me is when you see a company go against its stated values.  Like when a company that portrays itself as being different and a company of consumers or even a co-op goes against their portrayed or implied values.    REI says it is a co-op.  Their about REI page on their website states:

What began as a group of 23 mountain climbing buddies is now the nation's largest consumer cooperative. But no matter how large we grow, our roots remain firmly planted in the outdoors. Our passion for outdoor adventure is clear, whether you visit any of our stores across the country, phone us, or interact with us online.

Sounds like just some buddies getting together to form a different type of company.  And while they have a passion for the outdoors, they do not seem to have that same passion for their customers, especially when responsible stewardship really means responsible stewardship to their company's bottom line.

We work hard to earn our reputation for quality and integrity every day. Our core purpose guides everything we do: we all work to inspire, educate and outfit for a lifetime of outdoor adventure and stewardship.

What they really appear to be working hard as is getting every dollar out of their customers. To understand the real motives of REI you only have to look at the terms of their REI Visa card.  Do they think we are financially stupid?  Can’t anyone see how this card is completely unfair when compared to the better cards in the market place?  Where is their 100% satisfaction guarantee?

Just read the cards disclosures.  10.99% best interest rate minimum (could be as high as 22.99% with poor credit) when there are lots of cards three percentage points less.  23.99% for cash advances regardless of credit rating.  Let’s hope you are not camping in some remote location in the USA where you need cash and this is you only option.

Apparently REI members don’t travel outside the US.  Use this care outside the USA and you get slapped with a 3% foreign purchase transaction fee or your cash advance for some Euros in a foreign country just went to 26.99%.

Come on REI.  I thought you were different.  You can be different!  Change this card.  Get a new bank to back you.  Start a credit union.  But this card shows who you really are and what you are about.

Jim Collins in his classic business book Good To Great says that good business executives spend less time crafting their vision statement and more time aligning their organizations actions to their core values.  REI's core values are out of alignment here.  They need a good mechanic.

Priceless?  Everything has a price.  But this card extracts too much, both from the user and the sponsor.