FlyerTalk Forums - View Single Post - AA potentially closing accounts due to credit card churning/churn
Old Dec 3, 2019, 8:53 am
  #48  
aradisc
 
Join Date: Jun 2013
Posts: 531
Originally Posted by JonNYC
Seems like the rampant abuse situation around Citi/AAdv bonuses is even worse than I realized.
Shocked like Captain Renault in Casablanca? These details, including suggestion to create new AAdvantage accounts, have been in plain sight on a FT wiki since 2016.

Totally uninformed speculation follows: My guess is the reason this has lasted so long is the decision makers have bad incentives. AA execs are addicted to selling miles to Citi because AAdvantage is the only profitable part of the company. Citi execs are addicted to metrics on new signups, and will look the other way as to who is making them (after all, these applicants tend to have high credit scores and they're not really a default risk). The poor accountant who looks at the big picture and sees that it's not profitable to give bonuses to the same people over and over is afraid to lose their job for suggesting something that might hurt the exec's miles sales/card sign-up metrics.
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