Man, that IS a bummer, but it also sounds like a total 'cop-out' on the part of the CC company...
If one were to follow this through to its full extent, for example, then if one were to experience an unfortunate vehicle breakdown while on the way to, say, the BMWMOA rally, and the shop that towed your bike in to fix it did a poor job of towing the bike, scratched the paint, did a bad job of repairing the damage, and forced you to stay overnight in a motel in town, which rendered terrible service, unhygienic rooms with terrible food, all of which you put onto your credit card as you didn't have the cash on hand for all of this, and you're basically out of luck for trying to raise any "quality of service" disputes with them and are stuck with it all. Hmmm.
Puts a new twist on the old "Don't leave home without it" marketing phrase, doesn't it.... should really be "Don't use it unless you're already completely desperate/totally screwed", which is a little closer to my philosophy regarding credit cards - though they have become a necessary evil, haven't they ?