Points Clawed Back - Upgraded for bonus, downgraded in less than 12 months.
Last year I took a targeted upgrade from Everyday to EveryDay Preferred and paid the prorated annual fee, met the spend requirements and received my bonus points. Last month I was charged the annual fee and since I was never hitting the 30 transactions needed to get the 50% bonus points, I decided to downgrade back to the Everyday card where it's easier to hit the 20 transactions per month and receive the 20% bonus.
Today I received an email saying they have adjusted my account because of the downgrade and sure enough I saw that the bonus points had been pulled out. I wish I had known that even downgrades would trigger a clawback. Any suggestions on how to proceed? Should I just chalk this up to experience and move on? FWIW, this is now my only Amex card. I had a Gold card which I cancelled last year after I got charged the $250 annual fee and almost always was losing out on the limited restaurant credit. |
Originally Posted by crazyhorse
(Post 33124273)
... paid the prorated annual fee, met the spend requirements and received my bonus points. Last month I was charged the annual fee ... Today I received an email saying they have adjusted my account because of the downgrade and sure enough I saw that the bonus points had been pulled out. I wish I had known that even downgrades would trigger a clawback. Any suggestions on how to proceed? Should I just chalk this up to experience and move on?
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Yeah, as KK stated, if you didn't keep the card for a year you have little recourse.
AMEX is very clear about closing cards within a year. And that year begins when you decided to accept a bonus to upgrade to another card. Sorry. |
Originally Posted by krazykanuck
(Post 33124393)
How many months did you have it for? If you don't keep the upgraded card for a full year, then yeah, that'll happen. And as to the bolded, yes, unfortunately.
Oh well! I guess Amex made a half year's annual fee off me for once |
Originally Posted by Diplomatico
(Post 33124585)
Yeah, as KK stated, if you didn't keep the card for a year you have little recourse.
AMEX is very clear about closing cards within a year. And that year begins when you decided to accept a bonus to upgrade to another card. Sorry. |
Originally Posted by crazyhorse
(Post 33124640)
For the record, I didn't close the card, simply downgraded it to what I had before.
I have a ED to EDP upgrade offer in my email right now, and this is a quote direct from the T&Cs in the email: "...if you cancel or downgrade your account within 12 months after acquiring it; or if you cancel or return purchases you made to meet the Threshold Amount), we may not credit Membership Rewards® points to, we may freeze Membership Rewards® points credited to, or we may take away Membership Rewards® points from your account." Unfortunate to learn a lesson the hard way... :( |
Originally Posted by krazykanuck
(Post 33124681)
Right - but downgrading and cancelling have the same negative impact in the eyes of Amex if they gave you some incentive, like an upgrade or retention bonus.
I have a ED to EDP upgrade offer in my email right now, and this is a quote direct from the T&Cs in the email: "...if you cancel or downgrade your account within 12 months after acquiring it; or if you cancel or return purchases you made to meet the Threshold Amount), we may not credit Membership Rewards® points to, we may freeze Membership Rewards® points credited to, or we may take away Membership Rewards® points from your account." Unfortunate to learn a lesson the hard way... :( LAX |
Originally Posted by LAX
(Post 33124740)
....do I need to pay a second AF (keep it more than a year) to avoid trouble?
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Originally Posted by LAX
(Post 33124740)
Does this mean at least one renewal AF cannot be avoided? I picked up the Plat last November, so do I need to pay a second AF (keep it more than a year) to avoid trouble? TIA.
Does anyone have any data points on whether future applications for new cards are approved/rejected based on a past clawback of points? |
Originally Posted by mia
(Post 33125133)
If we are now discussing a card obtained through a new application, rather than via upgrade, the renewal fee will be due after the account is 12 months old.
LAX |
I didn't know about this!
Just accepted upgrade offer from green to gold last month. Guess I have to be careful next year. When you downgraded the card, I assume this is done via the phone, and they didn't remind you about the terms? |
Originally Posted by LAX
(Post 33126424)
Does this mean it's okay to wait until the renewal AF posts (which I guess is 12 months since account opening) and then call to cancel? As long as this is done within 30 days of posting, the full AF will be refunded, right?
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Originally Posted by gengar
(Post 33126580)
It's actually within 30 days from the closing date of the statement on which the AF posts. I had no clawback from my PRG bonus when I closed it in this manner (immediately following my first renewal AF).
LAX |
Originally Posted by xcollon
(Post 33126537)
I didn't know about this!
Just accepted upgrade offer from green to gold last month. Guess I have to be careful next year. When you downgraded the card, I assume this is done via the phone, and they didn't remind you about the terms? |
Originally Posted by LAX
(Post 33126605)
Thanks for reporting your experience. Does this (closing an account just after a year to avoid paying another AF) have a negative impact on future applications? I am guessing no unless it's done on a regular basis.
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