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Clear Card Ceases Operations, And We Saw It Coming

June 23, 2009 at 8:32 AM | by | Comments (7)

Can we confide in you for a moment? We saw the downfall of the Clear airport security fastlane card coming from a mile away. Before we delve into that however, let's talk about last night's huge shock for current Clear subscribers.

An email went out yesterday evening to Clear members at 8pm, with a simple message:

At 11:00 p.m. PST today, Clear will cease operations. Clear’s parent company, Verified Identity Pass, Inc. has been unable to negotiate an agreement with its senior creditor to continue operations. After today, Clear lanes will be unavailable.

It's almost as if the Clear employee sending the mass email knew that already they were working for free and couldn't wait to go home and enter the sour embrace of unemployment. The LA Times states that Clear claimed, as of June 4, to have "enrolled more than 260,000 fliers, mostly business and frequent travelers, who agreed to be vetted by the government and pay the annual fee in return for access to special airport security lanes."

Beginning approximately two years ago, Clear initially charged only $99 to sign up for their expedient security lane service, as they had occupied few airports at the time. The (up til yesterday) going rate had risen to $199, or $179 renewals for members. Preposterous!

And now for the juicyness: We had a Clear card from the $99 days, which we used exactly 3 times. It expired in March of this year, and we received much mail and email communication requesting our credit card information for renewal, as they claimed they didn't have it. Perhaps they went bankrupt from buying all those envelopes to send us crap mail—we kid.

In any case, two weeks ago we received an email that they had magically found our credit card information and charged us the $179 renewal fee. We were at lunch at the time, and we politely excused ourselves from the table and headed outside to make the call to rip Clear a new one. Which we did, and they refunded us (hopefully).

At least we aren't poor Kevin Rose, the founder of Digg, who was just yesterday approved for his Clear card and must now fight to regain his $200 spent on the cursed thing.

So here's how we guessed at the rumblings at Clear before they even knew themselves:
1. Serious issues with organizing credit card information and lack of communication with members over automatic renewal (our issue).
2. They recently offered Starwood Preferred Guests a free 6-month trial membership that looked too good to be true
3. Massive price inflation over the period of one year, when they still hadn't put lanes in our most-used airports (Las Vegas-McCarran, and T5/T6 at JFK, for example).
4. Outrageous amount of junk paper mail. It was like a magazine wanted us to renew, but worse. This company had all of our passport information and yet mailed us more junk than should any company who prides themselves on being technologically hip.
5. Dwindling appeal. The press buzz had gone, prices were raised, and we were always (all three times) met with surprise at Clear lanes because we were both youngish and female. This led us to believe that most Clear members were crotchety old male business travelers gifted with the card by their personal assistants.

We're deeply sorry for everyone sitting on a useless Clear card now, and we need to check our bank statement for that refund post haste. Class-action lawsuits are no doubt on their way, and members will want to know what will come of their personal data. Clear already lost one of their laptops at SFO last year; how can we guarantee the obliteration of our data?

So many questions and so few answers—right now. Please let us know about your Clear experience in the comments, and how you think this situation with the data and customers needing refunds will play out.

Related Stories:
· Registered traveler flier pass vendor Clear shuts down [LA Times]
· Clear Card Coverage [Jaunted]

Comments (7)

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awesome...

I bought into the whole Clear card thing a few months back when I was going to be traveling quite a bit for business and now they're out of business? That's just great. I was hesitant at first to spend the $199 but thought that with my upcoming travel itinerary being so crazy it would pay off. hmm... $199 divided by 24 multiplied by the 3 months that I used it (twice) = around 25 bucks. Do I get a $174 refund? How did this company go under actually - I can see how the costs of their mailings were expensive but what's bizarre is that they only mailed this crap to their already existing customers. I blame the executives - for not only their surely overpaid, shoddy leadership and poor decision making but for leading us down a path of ease when it was all just an information gathering path of delusion. Shame on them.

i didn't see it coming at all

this seems like a major surprise to me. yes, that's shady that they tried to recharge your credit card but that just seems like what every other travel company is trying to do in this economy.

sadly i applied for clear but there weren't any clear stations close to me where i could complete the in-person part of the application.

and now the real fun begins as customers like Kevin Rose try to get back their money.


Clear-gone!

I saw this coming a mile away as well. From the continued "sign up your friends" to "give your Dad a Clear card" so on and so forth. I knew things were done when leaving LGA this past Saturday (6/20/09) and there was no one manning the lane (without any indication of what was happening) and the registration station gone. I'd love to get a refund but I'm not holding my breath...

clear ex-employee

When Brill step down or his investors took him out,it was just matter of time. Verified Identity play us, you as the consumer and play mind games with the employees with a threat that if we did not sell, we would not have a job. For what? Verified play with our life. The company said that the laptops were incripted. Do you believe that? There's a lot of data floating. I believe in identity theft, do you?

Surprised it lasted so long

I can't believe anyone even bought into the whole thing to begin with (sorry guys, but c'mon!) How much of an advantage did any CLEAR member really have? It could not have been worth all the personal info that's floating around god knows where now...

good idea - bad company

The product would be worth it to me if I were flying out of a large and busy airport often. But, this was a poorly run company. Somebody else will come along and offer the same thing. Hopefully they will have their ducks in a row and a good management team.

Good product, wrong aim

I think this whole Clear Card was a great idea, save for a few things: most airports aren't busy enough to require a VIP pass, and all airports have separate lines for the higher class travelers, who this card is going to appeal to. I think this card would be best marketed to everyday travelers. Whenever someone decides to offer a similar service, I wouldn't be surprised to see a one time use option or something along those lines. For example, Mom, Dad and little Johnny are running late for a flight, and the security line is ridiculous. Oh no! What can they do? They can walk over to a booth, and for a nominal fee they are allowed a quicker route through security! Phew, crisis avoided! With all the fees that are tacked on to travel now, I really think this is where air travel and the accompanying security procedures are going.

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