Tally for Bonus Travel Too Much to Handle : B of A Loses Points With Some of Its Credit Card Users

And you thought only the airlines were running into trouble as a result of those bonus programs to reward loyal customers.

Two years ago, Bank of America decided to encourage its 4 1/2 million credit card customers to use their plastic more often by offering bonus points tied to purchases. The bank also hoped to attract new customers with the offer.

The points, one for every $4 charged on a MasterCard or Visa card, earned nice prizes, such as cordless phones, cameras, bicycles and the like. Heavy users could get a trip for two to Paris, complete with round-trip air fares, five nights in a deluxe hotel, gourmet dinner and a bottle of champagne.

Things were going so well that last November B of A generously started giving a point for every $2 in purchases. But the popularity, and the generosity, backfired a couple months ago.

The bank announced that the program would end on March 31, 1988, as scheduled. Trips had to be scheduled by June 30 and completed by Dec. 31. The bank was deluged with travel requests, in much the same way the airlines have been besieged by customers with free trips gleaned from frequent-flier bonus deals.

“The program has been quite popular,” acknowledged Catherine Moss, a spokeswoman for the bank at its San Francisco headquarters, although she was not certain exactly how many points had been awarded. “And there have been some problems over travel arrangements.”

The bank had to hire two more travel firms to handle the volume swamping the single agency it had been using. More complications arose when the bank decided to allow customers to extend stays and alter itineraries.

Customers who were supposed to be pleased by this neat bonus program started getting mad. One is Herbert H. Goldberg.

“Since the beginning of April, I have tried to get these 12,000 points cashed in in the form of a free trip to Paris in August, and I have received all kinds of excuses,” fumed Goldberg, a clergyman and lecturer from Northridge who travels extensively and uses his gold Visa card amply. “I have made phone calls. Sometimes seven or eight in a day. I have written them. All I get is excuses.”

Goldberg said he was not really so concerned about the free trip, because he is going to West Germany on business in August anyway. It is the principle, he said.

“I want to see those people fulfill what they promise,” said Goldberg, adding that he has closed most of his accounts at the bank over the problem.

Moss said all customers will get their free trips. She said the customers just need to be patient while the bank and its three travel firms sort things out.

“It’s the peak of the travel season, and demand is that much greater,” Moss explained.

When asked whether the popularity of the trips and the addition of more travel firms would cost the bank more, Moss said she was not sure. “Just say it’s a little more complicated now,” she said.