The U.S. Supreme Court will hear a case involving Ford’s cancellation of a credit card program that promised as much as $3,500 in rebates to new-car buyers.
Ford and Citibank adopted the program for its Visa and MasterCard holders in 1993. It entitled users to amass rebate points good for purchase of new Ford vehicles or Ford Credit F&I products with such purchases.
Cardholders were credited with 5 percent of each purchase, up to a maximum of $700 per year and a $3,500 total. In 1997, Ford ended the program, explaining it didn’t mesh well with the automaker’s new emphasis on brand management.
Cardholders were given five years to use rebate points from the end of the year in which they were earned, as long as they held a Citibank card. Cancellation of the card triggered a 45-day expiration period.
Suits were filed in six state courts – Alabama, California, Illinois, New York, Oregon and Washington – asking for billions of dollars in damages on the grounds of various misrepresentations about the campaign. Wrongful termination of the program also was charged.
Ford and Citigroup, Inc., owner of Citibank, sought consolidation of the suits in a federal court. The Supreme Court took up the case to clarify procedures for taking suits from state to federal courts.