TAIPEI (TVBS News) — Far Eastern Group (FEG), owner of the SOGO department store, has recently decided to terminate an indefinite contract to issue a co-branded credit card with Cathay United Bank by Aug. 15 after fulfilling the terms of conditions for 20 years.
During the Far Eastern International Bank shareholders meeting on Friday (June 16), Douglas Tong Hsu, chairman of the FEG, stressed that both sides must have an open discussion about renewing the contract if possible and emphasized his top priority is to take care of customers and shareholders.
There should always be a date on the contract. It is impossible and incorrect to have a contract with no end date," Hsu told reporters, "I don't think it is such a big deal as we sit down and have a talk peacefully instead of going to court."
Hsu's remarks came after Cathay United Bank's announcement a day earlier in a press meeting, expressing dissatisfaction towards the group's unilateral contract termination and revealing that a legal remedy has been filed to ensure customer rights.
Despite the unwanted contract disagreement with FEG, senior vice president of the Cathay United Bank, Bryant Cheng, mentioned that they are taking preventative measures to replace the co-branded card with its CUBE card in July.
Regarding potential impacts on 600,000 cardholders, Bryant said the most significant difference would be the 30-minute parking discount with the co-branded card benefit. However, "we are still fighting with the SOGO department store to keep that benefit."