Last edit by: wyogold
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AA potentially closing accounts due to credit card churning/churn
How to know if you're locked: (as of 12/22/2019)
- Call in to aadvantage reservations (800-882-8880) If you locked, you'll be forwarded to customer service instead of getting to the automated reservations system
- If you want to stay on the line, ask CSR if your account is locked (you tried to make a reservation but it wouldn't let you). CSR will inform you there's a note on your account and that corporate security will contact you
- Try to make a reservation for a super cheap hotel through useaamiles.com. There are 1000 miles / night hotels in New Delhi, so at worst you'll risk 1K miles. If you're locked, you'll see "Unable to process points. Please call our customer service for assistance."
So far, nobody seems to have gotten unlocked and gotten access to their miles back. Accounts with upcoming travel seem to be the ones that are getting terminated at the highest rate.
AA potentially closing accounts due to credit card churning/churn
How to know if you're locked: (as of 12/22/2019)
- Call in to aadvantage reservations (800-882-8880) If you locked, you'll be forwarded to customer service instead of getting to the automated reservations system
- If you want to stay on the line, ask CSR if your account is locked (you tried to make a reservation but it wouldn't let you). CSR will inform you there's a note on your account and that corporate security will contact you
- Try to make a reservation for a super cheap hotel through useaamiles.com. There are 1000 miles / night hotels in New Delhi, so at worst you'll risk 1K miles. If you're locked, you'll see "Unable to process points. Please call our customer service for assistance."
So far, nobody seems to have gotten unlocked and gotten access to their miles back. Accounts with upcoming travel seem to be the ones that are getting terminated at the highest rate.
AA accounts restricted (Nov/Dec 2019)
#2386
Join Date: Jan 2013
Posts: 1,388
No doubt. But I wonder if some DOT workers who skim these complaints are beginning to notice a bunch of "AA terminated my miles" complaints. One or two or even dozens won't get on the DOT's radar I bet, but if they keep coming...who knows.
#2387
Suspended
Join Date: Oct 2017
Location: Miami, Florida
Programs: AA ExPlat, Hyatt Globalist, IHG Spire, Hilton Gold
Posts: 4,009
The DOT is unlikely to care regardless of the volume, but I bet there will prove to be a weakness in numbers in this case as far as recourse. If AA terminated only a few people, it might be easy to find a sympathetic judge somewhere who sees it as the big company picking on the little guy. But if AA shows a pattern across thousands of people, the individuals start looking less sympathetic. Thats why Im surprised there are still no known lawsuits.
#2388
Join Date: Oct 2014
Posts: 8,550
By the way, for anyone hoping that the DOT will be a knight in shining armor, this is from their reply to an AA complaint:
"However, we have no authority to order compensation for individual complainants."
I'm not saying the DOT is powerless, and they can certainly forward their findings onto other departments and legal teams. But it doesn't seem like it's within their power to request compensation. At least it's a first step, and they do require AA to reply. Although we all know from the DPs above that AA's reply will be a standard form letter from a dubious "person."
"However, we have no authority to order compensation for individual complainants."
I'm not saying the DOT is powerless, and they can certainly forward their findings onto other departments and legal teams. But it doesn't seem like it's within their power to request compensation. At least it's a first step, and they do require AA to reply. Although we all know from the DPs above that AA's reply will be a standard form letter from a dubious "person."
This will not be done for an individual case, but it is something that DOT will start to investigate if they get many similar complaints. This is why it is important that everyone who gets shut down files a DOT complaint. It is the only way to get the DOT to investigate this. The DOT will definitely have a problem with there being a pattern of AA unilaterally shutting down accounts and confiscating miles for no defensible reason -- this constitutes unfair and deceptive business practices. More complaints makes it more likely that the DOT investigates this thoroughly.
#2389
Suspended
Join Date: Oct 2017
Location: Miami, Florida
Programs: AA ExPlat, Hyatt Globalist, IHG Spire, Hilton Gold
Posts: 4,009
... The DOT will definitely have a problem with there being a pattern of AA unilaterally shutting down accounts and confiscating miles for no defensible reason -- this constitutes unfair and deceptive business practices. More complaints makes it more likely that the DOT investigates this thoroughly.
of confidence? Has anyone found a single example of DOT caring about FF accounts being terminated?
#2390
Join Date: Oct 2014
Posts: 8,550
The DOT has, in previous EOs, said that confiscating miles would constitute unfair and deceptive business practices if it were done for an unfair reason. So all that's left is to argue that the people who opened credit card accounts (as AA encouraged them to do) did nothing wrong.
I think AA has bitten off more than they can chew here...
#2391
A FlyerTalk Posting Legend; Moderator: American Express, Capital One, Citi, Chase, Credit Card Programs, Diners Club, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 46,398
The difficulty with relying on DOT investigation is that AA does have reasons, and if there are only two parties in the room (AA, DOT) there is no one to challenge the evidence and reasoning that support AA's decision. You may think their reasons are weak, but unless there is someone there to challenge they are likely to be sufficient. "Some people created dummy frequent flyer accounts for the purpose of opening additional credit card accounts and receive bonuses intended for new customers."
#2392
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,268
The chances that DOT is going to take an enforcement action based on the AA response is close to nil. It doesn't really matter how many people complain. If anything, DOT will order a systemic remedy, e.g., ordering carriers (not just AA) to develop systems to preclude the conduct which AA found abusive here. DOT could also forward its own report to the CFPB and other financial regulators asking the regulators to consider doing the same with card issuers and directing card issuers to take a careful look at when and why multiple cards of any flavor are issued.
#2393
Join Date: Oct 2014
Posts: 8,550
The difficulty with relying on DOT investigation is that AA does have reasons, and if there are only two parties in the room (AA, DOT) there is no one to challenge the evidence and reasoning that support AA's decision. You may think their reasons are weak, but unless there is someone there to challenge they are likely to be sufficient. "Some people created dummy frequent flyer accounts for the purpose of opening additional credit card accounts and receive bonuses intended for new customers."
#2394
A FlyerTalk Posting Legend; Moderator: American Express, Capital One, Citi, Chase, Credit Card Programs, Diners Club, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 46,398
#2395
formerly atomicfront
Join Date: Sep 2013
Posts: 171
Companies settle cases all the time because its often cheaper than the legal fees if a case is going to continue for another year or two. Chases piddly $2,500,000 settlement in that case likely falls into this category.
Would the AA churners consider it a win if AA dumps $2,500,000 into a pot, nine years from now, and has them split it among themselves and their lawyers? I doubt it. Just the one guy yesterday who lost 6M miles has a ~$150,000 claim all by himself.
Would the AA churners consider it a win if AA dumps $2,500,000 into a pot, nine years from now, and has them split it among themselves and their lawyers? I doubt it. Just the one guy yesterday who lost 6M miles has a ~$150,000 claim all by himself.
#2398
Join Date: Aug 2017
Posts: 1,524
Yes, that is exactly what was claimed in the now deleted post. The substance was that the pattern/sequence of the code was determined and then brute force using that pattern and the first three letters of common last names (Smi was one example) was used to generate valid codes. This was possible quite easily as there was no Captcha or similar that limited the number of attempts,
Anyway, not sure why the argument about this. It was freely admitted to. But whether it was creating fake accounts for pets or plants, using bought mailers or mailers not addressed to the user, or generating fake codes, it all boils down to not acting in good faith or having clean hands. Just because they were able to squeak it by Citis less-than-stellar IT doesnt mean it will meet any test of the T&C or the clean hands doctrine if this gets to court.
Anyway, not sure why the argument about this. It was freely admitted to. But whether it was creating fake accounts for pets or plants, using bought mailers or mailers not addressed to the user, or generating fake codes, it all boils down to not acting in good faith or having clean hands. Just because they were able to squeak it by Citis less-than-stellar IT doesnt mean it will meet any test of the T&C or the clean hands doctrine if this gets to court.
#2399
Join Date: Jan 2017
Posts: 787
I don't believe they require a follow up statement however the DOT has what seems like a case administrator that looks over the complaints and responses. So if AA says "you weren't profitable to us so we cancelled your tickets" and you respond "that doesn't seem legal" it might be in their best interest to respond instead of letting the DOT purse enforcement and fines.
#2400
Join Date: Dec 2012
Location: YVR, HNL
Programs: AS 75k, UA peon, BA Bronze, AC E50k, HH Diamond, Fairmont Plat (RIP)
Posts: 7,563
You're wrong here - there was actually a limit to 3 attempts. I know because I tried a code with last name combo and made the same typing error 3 times in my last name (turns out my mac's N key was broken). After the 3rd attempt, that code became invalid for use even after I tried it from a different working computer.
And in any case, you were trying the same code three times, which is what likely caused that code to be invalidated. Those generating fake codes were trying different codes each time so each code was only tried once until they got a match. Hence the no limit claim. Different scenario.