Updates on the SM Advantage story

Just so you guys are updated, I filed a formal complaint to DTI via email yesterday morning:

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Dear Sir/Madam,

Kindly read the email exchanges below [see previous post] as backgrounder. I am very much irritated and disgusted at the deceitful way SM Advantage has been doing business. I received the original email about the Philam Accident insurance just two days ago and was shocked that they can blatantly assume their members' wishes.

As of this writing, my last email to them is still unanswered. I called their hotline this morning and, again, was shocked when I was informed that they have been deducting points from me for the stupid insurance since 2006! The CS rep even had the gall to repeatedly tell me "Mam, kasi program ng Philam yan" as if SMAC had nothing to do with it.

My goodness, imagine the millions of pesos this company has been earning all these years from how many thousands of members whom, I'm sure, many of which wouldn't bother to complain about a measly 20 points. But if you think about it, P20 x say, 10,000 members already gives them P200,000 in profit!

I really hope you can take immediate action against this. Thank you very, very much! I await your speedy response.

Also, I'd like to commend DTI on the prompt and polite service I got when I called your hotline a while ago. I'm glad you have well-trained CS reps who really know how to talk to callers.


Sincerely,

****


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The DTI replied to me and CC'd SMA:

Dear Ms. ****,

This has reference to your complaint against SM SM Advantage Card, please find below a letter sent to us by SM in response to an earlier complaint with a similar subject and we placed in anonimity the name of the complainant in this SM letter we are forwarding to you. Since the subject of this letter is of a similar nature and the said complainant was clarified on her issues agaisnt SM, we are looking forward that said letter will clarify your issues and concern on the said SM card.

Letter sent to us by SM

Dear Atty. Asis,

This is in response to the letter from Ms.______ regarding the opt-out insurance scheme offered by the SM Advantage Card program.

At the onset, we would like to assure Ms. _______. and the Department of Trade and Industry that the SM Advantage Insurance Program was developed with the best of intentions. It intends to offer cardholders an option of insurance protection at affordable cost conveniently.

The mechanics of the SM Advantage Card Insurance Program is such that when an SM Advantage Cardholder has accumulated 70 points, he is automatically awarded a Php 100,000.00 Accidental Death or Permanent Disability cover for only 20 points (equivalent to 20 Pesos). This program is automatic but not compulsory. Any Cardholder has the option to decline this privilege anytime through SM Department Store's Customer Service Counters, by fax or through the Philam hotline. Once the Cardholder declines this privilege, the 20 points used for his or her enrollment in the Program are promptly credited back to his account. The automatic nature of the scheme ensures that the Cardholder can immediately enjoy the insurance coverage benefit without any lapse of time.

Recognizing the importance of insurance for every individual, SM and its partner, Philam Insurance, have created one of the most convenient and affordable programs in the market to ensure that its Cardholders can acquire basic financial protection against accidental death or permanent disability. With this modest motivation in mind for the Program, we continue to proudly extend this privilege to our Cardholders by providing them the following advantages:

• Extremely accessible and convenient insurance coverage simply by being an SM Advantage Cardholder.
• The Cardholder is provided with an opportunity to have an insurance coverage without any cash layout. If the Cardholder would try to acquire an Accident Insurance outside the Program, it would cost approximately 500 Pesos. With this Program, a Cardholder has access to a substantial amount of insurance for only 20 points. The proceeds of this insurance can be claimed on top of any other existing life or accident insurance plan that the Cardholder may have for death or permanent disability due to accident. In short, it will never be a duplication of any other insurance coverage.

We have regular communications with our Cardholders about this membership privilege through flyers and full page advertisements in the most prominent daily broadsheets (Philippine Star, Philippine Daily Inquirer and Manila Bulletin). Moreover, we will be continuously exploring new communications channels to help enhance the awareness of our Cardholders and their understanding for this Program. This is a genuine effort formed through the partnership of two highly respected and stable companies that ensure all legitimate and admissible claims under the Program are paid to the rightful beneficiaries at all times.


Most Sincerely,

REY T. MACLANG
Asst. Vice President - Marketing
Marketing Convergence, Inc.
Bldg. D, SM Corporate Office, Bay Boulevard
SM Central Business Park, 1300 Pasay City
Philippines

Phone: +63 (2) 831-8000 local 4979
FAX: +63 (2) 831-6600
Mobile: +63 (0918) 948-9754
Email: RTM@sm-shoemart.com

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Did that email answer my main concerns on their so-called process of "communicating" with their customers? Definitely not! So I composed another reply:


Mr. Maclang,

I will concede that the program you are implementing MAY be beneficial to your members IF we knew about it in the first place. Heck, I might even be happy to be enrolled if I was informed BEFORE you deducted any points from me. As it is, you sent me an email regarding MY insurance 3 MONTHS BEFORE it expires. And as of this morning when I called your hotline, imagine my shock when I was told that I have been being deducted points for this "benefit" since 2006! What if I met an accident last year or the year before that? Would I have been able to claim anything from Philam when I didn't even know that I was insured?!

When you said "We have regular communications with our Cardholders about this membership privilege through flyers and full page advertisements in the most prominent daily broadsheets (Philippine Star, Philippine Daily Inquirer and Manila Bulletin)" that is not the proper way to communicate! Because then, you are wrongfully assuming that all your members will read those announcements. Just to let you know, I'm one of those who haven't. Is SMA that lazy to send snail mails or emails directly to your members so that we would be informed firsthand about your so-called program? Or will that cut your earnings from this Philam tie-up huh?

You further said so yourself that "Moreover, we will be continuously exploring new communications channels to help enhance the awareness of our Cardholders and their understanding for this Program." Based on this statement, anybody sane enough would immediately understand that you RECOGNIZE your shortcomings of falling short in terms of proper information dissemination with regards to your cardholders' awareness about the program.

WHY HAVEN'T YOU INFORMED YOUR MEMBERS BEFORE ENROLLING US IN THAT INSURANCE PROGRAM? That is my main complaint! Perhaps if you did that, you won't be receiving these kinds of complaints. Or haven't you thought about that?

So don't go placating me with standard letters that don't mean anything to me!

I am very, very disappointed at your attempt to explain away the matter without addressing my main concern.

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After sending that, I got the same email from DTI but this time, there was a signature of the person who sent it:

Dear Ms. *****,

This has reference to your complaint against SM for its SM Advantage Card, please find below a letter sent to us by SM in response to an earlier complaint with a similar subject and we placed in anonimity the name of the complainant in this SM letter we are forwarding to you. Since the subject of this letter is of a similar nature and the said complainant was clarified on her issues against SM, we are looking forward that said letter will clarify your issues and concern on the said SM card.

For your guidance,

Mario Asis
Head, Legal Affairs Center
National Capital Region

Department of Trade and Industry

12th Floor Trafalgar Plaza Bldg.,
105 H.V. dela Costa st. Salcedo Village Makati

Tel. No. 811-8231 local 218

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So I wrote another email for him:


Dear Atty. Asis,

As the first email I got from this address had none of your name on it, I mistakenly assumed it came from SM thus my response was addressed to Mr. Maclang. Since I'm sure you've already read my response to that other email, kindly address on your end my main complaint: That of personally receiving a letter from them about the insurance program three months' short of its expiration.

I have just received messages from two friends of mine who received similar emails and were as initially bewildered as I was. It became obvious to me that SM is sending out the emails late so that nobody can file any claims and they simply rake in the payments. Too, their reasoning of having good intentions doesn't erase the fact that they enroll their members in the insurance program WITHOUT our knowledge. Imagine, I was in the dark about it for two years! And they have the audacity to tell us that we have a choice to opt out by filling out a form at their customer service counters. That is so inconvenient! Why couldn't they have ASKED us first BEFORE we were AUTOMATICALLY ENROLLED so that we won't have to be bothered with going through the motions of opting out?!

I hope you got my point.


Sincerely,

*****


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Well, I got no more replies after that. I don't know if they DID get my point. Ganun ba kalabo yung pagkasulat ko???? O ayaw lang talaga nilang intindihin?

Yesterday afternoon, I was in Makati when my hubby texted that we need dog food pellets. I dropped by SM Supermarket and told the cashier to use all the points on my card. How much was the balance? A measly P133 after the P60+ I used in 2006. Imagine, after all those purchases after 2 1/2 years of membership (including one renewal), hindi man lang umabot ng P200 ang na-rebate ko?! I tell you, SM is not worthy of my loyalty! I won't renew my membership anymore when my current membership expires. And until it does, I won't let my points reach 70 so they won't be able to deduct any points ever again!

To SMAC holders, realize that to get 20 points on your card, you should spend P4000 worth of SM department store items or P8000 worth of SM Supermarket groceries. If you use a credit or even a debit card, your points are cut in half. Ergo, instead of 1 point for a P400 purchase, you'll get 0.5 points. How's that for strategy on their part?

To those who are saying I'm overreacting, no I'm not. I am just standing up for my rights as a consumer who ought to be respected in return by the establishments I patronize. If nobody speaks up when atrocities like these happen, what kind of Philippines will our children have when they grow up? A more corrupt nation? I would hate to see that happen. And I hope this time, at least YOU (the reader) got my point. Stop being apathetic to these kinds of issues. Let's all start fighting for what is right. Cliche as it may sound, I still believe that, together, we can make a difference.