First, there was Bank Transfer Day, a Facebook campaign that encouraged consumers to switch from a big bad bank to a credit union by Dec. 5.
Now, there’s Balance Transfer Day, a Facebook campaign encouraging consumers to switch their credit card debt by Dec. 11 to a lower-rate card.
But questions are being raised about a conflict of interest by the Balance Transfer Day founder, Michael Germanovsky.
According to the Associated Press, Germanovsky is “editor-in-chief of a website that profits off credit card applications.” Germanovsky told the AP that his online campaign has nothing to do with his role at Credit-Land.com.
This posting appeared late yesterday on the campaign's Facebook page:
"Three reasons why Balance Transfer Day is the 99%:
- This page will never advertise any commercial entity.
- We have launched a petition to U.S. Congress to End High Interest Rates...
- The real beneficators of Balance Transfer Day is the 99%, because the Balance Transfer Day is aimed at ending High Interest Rates on Debt, and moving debt to low interest credit cards. This page is not intended to give you recommendations as to which specific balance transfer credit card to use to move the debt. Instead, this page is created, to remind you that credit card industry is the only financial industry where interest rates are NOT regulated."
Some of the comments posted by others though aren't buying it.
Terry Goffinet wrote: "If you were apart of #OWS at all, or had taken the time to understand it, then you would be aware of and committed to the principle of transparency. By not following this basic tenant, you have outted yourself as either someone looking to financially benefit, or someone out to be a hero. We don't have time for either."
Meanwhile, credit unions saw far fewer new members as a result of Bank Transfer Day than the 650,000 previously announced. According to CNNMoney, the Credit Union National Association revised its numbers, and now says credit unions added 214,000 members and 400,000 new checking accounts in October.