Mesa shuts down credit card that rewarded cardholders for paying their mortgages - TechCrunch
Mesa Fintech Shuts Down Homeowners Card Program
In a move that is likely to come as a shock to many homeowners, fintech startup Mesa has announced the immediate shutdown of its popular Homeowners Card program. The program, which was launched with great fanfare in recent years, awarded cardholders points for paying their mortgages on time.
What Was the Homeowners Card Program?
The Homeowners Card program was a unique financial product that allowed homeowners to earn points on their mortgage payments. These points could be redeemed for cash back, travel rewards, and other perks. The program was marketed as a way for homeowners to save money on their mortgages while also earning valuable rewards.
How Did it Work?
To participate in the Homeowners Card program, homeowners would need to apply for the card and be approved. Once approved, they could earn points on their mortgage payments based on the amount paid each month. The points could then be redeemed through Mesa's partner network, which included various retailers and travel companies.
Why Did Mesa Shut Down the Program?
While details are still emerging, it appears that Mesa was unable to overcome significant financial challenges related to the Homeowners Card program. In a statement on its website, Mesa announced that all payments for the program would be halted effective December 12.
"Unfortunately, we have been unable to sustain the Homeowners Card program," said a spokesperson for Mesa. "Despite our best efforts, we were unable to overcome significant financial challenges associated with this product."
Impact on Homeowners
For homeowners who had applied for and been approved for the Homeowners Card program, the shutdown of the program means that they will no longer be able to earn points on their mortgage payments. This could potentially have a negative impact on their credit scores, as missing payments could negatively affect their credit history.
What's Next?
While the immediate future for Mesa and its customers is uncertain, it's clear that the company has made a difficult decision to shut down the Homeowners Card program. As the situation develops, we'll be sure to provide updates on any changes or developments.
In the meantime, homeowners who are concerned about their mortgage payments should reach out to their lenders immediately to discuss their options.
Key Takeaways:
- Mesa has shut down its Homeowners Card program
- The program awarded points to cardholders for paying their mortgages
- The shutdown was due to financial challenges associated with the product
- Homeowners who applied for and were approved for the program may still be impacted by the shutdown