fandu

I searched but didn't find anything relevant so here goes:

I upgraded my PRG to Platinum after the first week of December 2013. The offer was spend $5k and get 50k MR points. I have already received points (after spending 5k), global entry credit and will be getting the $200 airline reimbursement for this year soon.

I will be charged the annual fees in mid-January. Can I apply for the $200 airline reimbursement again for 2014 and then cancel the card and not pay the annual fees? I have no need for the card and I already have a Business gold card to keep the MR points.

Does anyone sees any issues with this?

YOWgary

You mean aside from the fact that it's dishonest and not a little bit unethical?

fandu

Yeah aside from being dishonest and unethical ... I do that every now and then when I sign up for a CC and use the rewards and never use it again and cancel it when the annual fees comes due ... only this time I am trying to cancel before the annual fees comes due

dgwright99

How is it dishonest ?
I see no suggestion that he led Amex to believe that he would keep the card for any period of time.
So unless he misled Amex is some way, there is no dishonestly.

Unethical is a more in the eye of the beholder. When Starwood offer a cheap vacation conditional on attending a 90-minute timeshare pitch, is it unethical to take them up on the offer even if you have no intention of buying the timeshare ?

If somebody offers a 30-day free trial, is it unethical to use the free trial even if you firmly intend to cancel before the 30 days ?

My view: Amex made an offer - we will give you this in return for that. The OP is doing what he agreed to do - to the letter. As far as we know, no other communication took place.

I see nothing unethical here.

OTOH - if he had ASKED for the offer (If you do this for me, then I will do that), then I would agree that there was an implication that the new card would be kept into at least the medium term, and in that cases I'd agree that would be unethical (and depending on exactly what was said potentially dishonest as well).

lacuadra

I am interested in this discussion

I am thinking of downgrading to PRG. But first would like to use my 2014 credit and then downgrade like two months later. Have had this card for a number of years and was invited to upgrade. Would have stayed w/o doubts but for the AA/US lounge issue. Been an Amex cust for 27 years

Thoughts?

YOWgary

Unless I've misread OP completely, s/he's talking about signing up for a card with a $699/yr fee, taking all the benefits from it and then trying to cancel the card with the fee reimbursed.

Even if Amex somehow allows this, it's obvious that this is not the intended arrangement. OP is taking value from Amex and then reneging on the agreed-upon fee.

carzin

I suspect, but don't know for sure, that they will deduct the paid benefits (reimbursements) from whatever refund you would get from the prorated return of your sign-up fees.

This should be common knowledge, as people with Platinum cards surely have cancelled mid year, after benefits have been reaped. Would be good to know.

FlyingIke

I feel this is neither dishonest nor unethical. This is a business decision. When I started last year I had complimentary access to American Airlines Admirals Club lounges and US Airways Club locations. That was the deal. They took that away. My one year with the Platinum card also gave me a chance to try the Concierge. In my opinion the World MasterCard or Visa Signature Concierge are just as good - if not better.

Did we decide to make the airline reimbursement go by calendar year and not membership year? No. Did we have a say in them taking away benefits like Club lounges? No. They have reduced benefits that made some get the card in the first place. So that wasn't part of "the intended arrangement" either.

The OP has "no need for the card". We don't have to subsidize American Express. Use your credit. Cancel away. Sleep easy.

EDIT: OK, as I re-read I see the big flaw in my understanding. The OP is trying to not pay ANY annual fee; keeping the card for 6 weeks instead of a year. Different story...hmmm...that one is on you. ;-)

YOWgary

Ike, I agree that for something where you signed up, used the card honestly for at least a sizable portion of the year, then gave up when Amex started slashing benefits, it's fair play.

The six-week, pump-and-dump approach OP is suggesting is just too greasy for me.

Kadence

What card has a $699 per year fee?

mia

Canadian Platinum as discussed in this thread:

http://www.flyertalk.com/forum/ameri...29-2012-a.html

FlyingIke

I'm with you there...that's a fine line. I can't suspect Amex would be happy with that...although I'm curious of what they would do, so fandu, if you do go forward let's us know how that works out for you. We won't judge

That's fair play. You've used the card honestly, they've removed benefits, it's not worth the cost for how you use it...I can't think of a better reason to downgrade.

YOWgary

Agreed. Totally fair.

thebill0322

If i signed up last year and just got my second 200 airline rebate 5 days ago, would it be ok to cancel now before the year 2 fee hits? or is that to soon after reimbursement? I paid the annual fee last year.

I don't want the card whatsoever with the devaluation...

FlyingIke

In the end I think that's up to you. But like I stated earlier we didn't decide to make the airline reimbursement go by calendar year and not membership year. I think you'll find a lot of people doing exactly what you're planning to do. Especially after today's announcement from Delta that guest access to the SkyClub is no longer offered as a benefit of the card. Yet another devaluation.