Chase Ultimate Rewards - Can Chase take Adverse Action on UR accounts?

Over here (http://www.fatwallet.com/forums/finance/1072125/), there is a really interesting discussion about a Chase AARP credit card. Apparently the sign-on bonus was 5% unlimited cash back for 6 months. Some folks used the cash back to buy gift cards, liquidate them and pay them off, and then buy them again, several times a month.

Chase has started taking "Adverse Action" on these accounts, shutting them down. The stated reason is "use not as intended." If an account holder has UR points through Sapphire, those are shut down too. All rewards including UR points are forfeited. This week, Adverse Action is being taken against account holders with as little as $1000 in cash back.

I've been able to rack up some pretty nice UR balances due to shopping mall purchases, sign-on bonus, etc. My UR points are worth significantly more than $1000. Does anyone think Chase will turn to Sapphire and Ink Bold holders next, if balances start getting too high?

I can't get the link to work. As long as you're not doing anything out of the ordinary (massive gift card purchases, etc) I would think your accounts would be ok. Although, regarding my personal UR account, I usually don't let it get above 100k but I usually have plans that involve immediate use.

I understand that people want to get as many points as possible through purchasing gift cards but it has to be done in moderation. Another poster had a great statement from another thread basically saying cash back/point potential is unlimited until abuse of the system starts to occur. That's when we have (usually 1st ;)) posters claiming Chase is horrible because they wiped out their rewards accounts for "spending too much" during the promotional period. Well that "spending" could have been 20k worth of gift cards for all we know.

If Chase doesn't want to give rewards on 20K of gift card purchases then they should program their system to not allow it. Amex figured out how to not give points on traveler's checks. Allowing people to earn rewards and then confiscating them is not right. Chase has over 260,000 employees and a I'm sure more than a few are lawyers. They are very efficient at bending consumers over with fine print (as are all banks). I have no sympathy for any bank when the little guy f#$ks them at their own game! Perhaps they should hire a FTer to review their rewards programs to uncover cracks that can be exploited. :p

If Chase doesn't want to give rewards on 20K of gift card purchases then they should program their system to not allow it. Amex figured out how to not give points on traveler's checks. Allowing people to earn rewards and then confiscating them is not right. Chase has over 260,000 employees and a I'm sure more than a few are lawyers. They are very efficient at bending consumers over with fine print (as are all banks). I have no sympathy for any bank when the little guy f#$ks them at their own game! Perhaps they should hire a FTer to review their rewards programs to uncover cracks that can be exploited. :p

Haha so true. I wouldn't mind "Professional FTer" to be my new job title