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AA Penalty for Selling My AA Miles

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Old Aug 14, 2019, 1:52 pm
  #106  
 
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Originally Posted by SteveinA2
I learned something today. I assumed I could give my miles away to a charity silent auction and let the charity keep the profits.

it would seem innocuous enough, but I assume the prohibition exists because it could be used (or more probably was used, multiple times) as a front for a direct sale
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Old Aug 14, 2019, 2:00 pm
  #107  
 
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Originally Posted by UKtravelbear
Just to clarify if the aunt said 'yes I paid him the $37.47 for the taxes and fees' (and that indeed was the actual amount) would that be OK or would that still be verboten?
On my reading of the T&C JDiver posted, that should be okay, as strictly speaking it's not consideration for the miles.

OP wrote that he intends to concentrate on proving his aunt is really his aunt. More relevant, as many have already noted, is if the aunt paid OP for the miles. Establishing a familial relationship may have some probative value, as it is less likely that one would receive payment or other consideration from a close(ish) relative. But if AA has already contacted the aunt and she copped to paying for them, then it's causa perduta.

I don't think the mere fact that one advertised 300,000 miles for sale should result in one forfeiting 300,000 miles. The T&C state that "Any [advertised for sale] mileage or tickets are void if transferred for cash or other consideration." It sounds to me that it's actually "closing the deal" that would trigger this serious penalty. The question then is what are the consequences of merely advertising, which itself a violation. The T&C, further down JDiver's post, provide a wide range of options available to AA, apparently in their discretion. But it doesn't seem right that the penalty for advertising only should be as severe as for actually completing the sale.

Edit: Just occurred to me that the miles becoming "void" in the T&C refers to miles already that have already been transferred to someone else or spent. In other words, the penalty is really on the recipient, not so much the person in OP's position.

Last edited by bambinomartino; Aug 14, 2019 at 2:07 pm
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Old Aug 14, 2019, 2:01 pm
  #108  
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Originally Posted by Often1
Bullet #3 clearly covers AA and any other property or rights holder.
I would say it clearly does not do that — for it clearly protects Craigslist’s property rights more than anything else there.

Last edited by GUWonder; Aug 14, 2019 at 2:08 pm
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Old Aug 14, 2019, 2:11 pm
  #109  
 
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Originally Posted by rocketsingh
I am going to contest the email and prove she is my aunt.
I did post the AD on CL and had people reach out to me but no sale ever went thru.
My ad on CL stated 300K miles for sale, because I had more and I was struggling to get tickets for my travel so I deiced to see if I can sell and get my money back for what I paid for. I know they linked me thru my number because my ad did have my number posted and then with the timing me booking a ticket for my aunt for next year just collided thinking I sold my miles
<Insert appropriate joke here>
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Old Aug 14, 2019, 2:14 pm
  #110  
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"aunt"
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Old Aug 14, 2019, 2:25 pm
  #111  
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Originally Posted by asf-07
it would seem innocuous enough, but I assume the prohibition exists because it could be used (or more probably was used, multiple times) as a front for a direct sale
If a member did this, and was able to produce a sufficient paper trail showing it was a legit charity using the miles for a flight as part of their mission (kid flying to get medical treatment or something), then I can see you getting off with a warning. Posting miles on CL is a different story.

I would have previously thought that donating miles or other travel certificates to a charity would be okay with the travel provider but not okay with the IRS if you tried to claim some sort of monetary value for the donation. That's probably also true, although it sounds like you're more likely to get busted by an airline than audited by the IRS!

Without opening many other cans of worms, I'll just say that I continue to believe it's in our best overall interest that miles are not legally our property and do not have a market value according to the IRS or other financial regulators, even though this means we live under rules that airlines unilaterally create. With increased rights of ownership in this area, the entire game couldn't exist. Accounting and regulatory rules would kill it.
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Old Aug 14, 2019, 2:28 pm
  #112  
 
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Not really related to the forfeiture of miles, but this really does highlight why it doesn’t make a lot of sense to take advantage of AA’s mileage sales unless you see the flights you want are available to book. Bloggers like Lucky at OneMileAtATime constantly advertise “excellent value” for spending $4,800 on AA miles when it is often very hard to use them for specific dates and locations. Unless you have total flexibility, buying miles ahead of time isn’t advisable. I know, I bought miles last year and struggle to find flights on my desired routes.
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Old Aug 14, 2019, 2:43 pm
  #113  
 
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eBay will release your name, It happen to me,

I received a warning letter, and told next time they would close my account,

This was not AA, it was WN, when they gave coupon trip passes, employees also sold passes on eBay back then,

I have given them away before they expired on FT, never had anymore problems.

Most of my miles are given away,
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Old Aug 14, 2019, 3:08 pm
  #114  
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Originally Posted by rocketsingh
I recently bought last year AA miles when they had a bonus miles given for the purchase.
I had a total of 450K Miles in my account.

Recently I decided to put my miles 300K for sale on Craigslist since I wasn't using it and having a hard time getting tickets I wanted - but no interest from anyone.

My aunt told me to check her for if I could find her a ticket to travel for next year - I ended up booking a ticket for my aunt over the weekend since she needed the ticket I booked the ticket I ended up paying the taxes for her and this morning I got an email:

As a result of our findings, your AAdvantage account will be assessed a penalty of the amount offered for sale, 300,000 AAdvantage miles for violating AAdvantage program rules. The removal will include mileage attached to pending reservations. You will need to notify the passenger that their award tickets are no longer valid. Please understand that any future violations of the AAdvantage Program Conditions, without exception, will force us to terminate your AAdvantage accounts. This action will cause any previously accumulated mileage and accrued benefits to be forfeited, and you will be ineligible to participate in the AAdvantage program in the future.

I have not not been able to get hold of anyone via phone - all agents I spoke to said reply back to the email.

I bought the miles last year - I paid for the taxes for the current reservation, which has not been refunded back - they took out from my account 300K miles and cancel the reservation ? any advise what to do at this point ??
You bought miles last year, and in all of that time nobody need a ticket, but............
How did you buy 300K miles? That is over the limit AFAIK
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Old Aug 14, 2019, 3:15 pm
  #115  
 
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Originally Posted by skywardhunter
There are a lot of assumptions being made:

1. There is no indication that AA is aware of the CL ad or has linked it to the OP
2. The OP booked a ticket using miles for their aunt
3. AA cancelled the ticket and took the miles

The CL ad is a red herring and may be totally unrelated. AA may assume that the aunt is not in fact a genuine relation of the OP and thus assumes the OP sold the miles. If the aunt is genuinely related to the OP this may be resolved by proving this to AA.


that is exactly whatI thought
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Old Aug 14, 2019, 3:24 pm
  #116  
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Originally Posted by anniegray




that is exactly whatI thought
It’s entirely incorrect, however.
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Old Aug 14, 2019, 3:54 pm
  #117  
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Originally Posted by pinniped
"aunt"
'...asking for a friend'
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Old Aug 14, 2019, 3:55 pm
  #118  
 
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Originally Posted by SJCFlyerLG
A couple of decades ago, before airlines required ID when flying, I had a multi-segment business trip booked by my company. Something came up, and the company decided I needed to stay in the office, and they sent a colleague in my place. The ticket was discounted, so it was not refundable. Without my knowledge, the company simply gave my tickets (with my AA number) to my colleague, and he flew under my name. On his segment home, he wanted to change flights. He never traveled with cash, so he presented his credit card for the change fee. The gate agent noticed the names were different, then seized the ticket and made some threats. He had to buy a new ticket.

He came home and told me the story, which unnerved me, to say the least. I received a letter from AA, informing me that it was a violation, but no no penalties were assessed - just warned never to do it again. They did revoke the miles awarded for that trip, which was fair.
I've never seen an ID check for a domestic flight in the last 10 years.
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Old Aug 14, 2019, 3:56 pm
  #119  
 
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Originally Posted by mvoight
You bought miles last year, and in all of that time nobody need a ticket, but............
How did you buy 300K miles? That is over the limit AFAIK
I recall an offer in which the limit was raised and, with the bonus, added up to something like that for around $5,000. Worth it if you had a longhaul itinerary in F on hold but a lot of money to invest otherwise. It might have tempted someone who thought they could sell the miles when there were no deals available from AA.
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Old Aug 14, 2019, 3:56 pm
  #120  
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Originally Posted by QueenOfCoach
Folks, it does not matter if the lady for whom the award ticket was purchased was his aunt, mother, sister, best friend, boss or total stranger.

It is perfectly possible for a person to :

1. Give an award ticket to a non-relative
2. Sell/barter/trade an award ticket to a non-relative
3. Give an award ticket to a relative
4. Sell/barter/trade an award ticket to a relative

No one cares if the woman was really the OP's aunt. They care that miles were advertised for sale, and they came down hard to discourage repeat offences.
...and you can be sure that AA is reading this thread!
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