Wednesday, November 26, 2008

Using the government provider

Pentagon announcement --

WASHINGTON, Nov. 25, 2008 – The government-issued Bank of America official travel charge card that’s been used for years by Defense Department military and civilian employees will be deactivated effective Nov. 30, Defense Travel Management Office officials said.

Citibank has the new contract, and eligible defense military and civilian travelers should have received their new Citibank travel charge cards in August or September. The switchover to Citibank is slated to occur at midnight the morning of Nov. 30.

It makes a lot of sense. The government owns a big chunk of Citibank. And under the newly announced TALF (not to be confused with the TARP), it will probably own a big chunk of Citibank's credit card loans. So it might as well use Citibank for the actual card business as well. But shouldn't Citibank be waiving the fee income and late charges?

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