FlyerTalk Forums - View Single Post - Elan Financial Services closed my Fidelity account without notice; forfeited all of m

Aug 8, 2019 | 8:39 am

#23

mia

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Quote:

Originally Posted by Often1

Points such as this are not the account holder's property and, if they were, would be taxable income at their fair market value at the time "paid."

This seems pretty far afield from the topic of this thread, but I don't follow the reasoning of this statement. Rewards earned by credit card spending are not taxable because they are a partial refund of my own money. Ownership of the points wouldn't change that. In any event other banks that have confiscated rewards balances when closing accounts have agreed to compensate the account holders:

Quote:

JPMorgan Chase & Co. and Chase Bank USA NA have reportedly agreed to pay more than $2 million to settle a class action lawsuit accusing them of unlawfully forfeiting credit card holders’ rewards points upon the closure of Chase credit card accounts.

https://topclassactions.com/lawsuit-...on-settlement/

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