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Old Dec 18, 2019, 12:31 pm
FlyerTalk Forums Expert How-Tos and Guides
Last edit by: wyogold
Related discussions in other Flyertalk forums:

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.
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AA accounts restricted (Nov/Dec 2019)

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Old Feb 13, 2020, 2:58 pm
  #2551  
mia
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Originally Posted by VegasGambler
Does it need to be tested?
Read the entire sentence:

Although respondent and amici claim there have been fundamental changes in the way that frequent flyer miles are earned since Wolens was decided, that does not matter here where respondent did not assert that he earned miles from any activity but taking flights or that he attempted to redeem miles for anything but tickets and upgrades.
This tells us that the court did not consider if miles earned from other activities would result in a different outcome. That's what I mean by untested. It's an argument that could be made, but apparently the facts of that case did not cause the court to examine the issue. The opinion tells us that the could be a difference, not that there is one. Someone will need to spend the money to raise the issue in Federal court.
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Old Feb 13, 2020, 2:59 pm
  #2552  
 
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Originally Posted by mia
Read the entire sentence:



This tells us that the court did not consider if miles earned from other activities would result in a different outcome. That's what I mean by untested. It's an argument that could be made, but apparently the facts of that case did not cause the court to examine the issue. The opinion tells us that the could be a difference, not that there is one. Someone will need to spend the money to raise the issue in Federal court.
All that matters is that it prevents AA from getting a court to dismiss a complaint based on state or local law solely because of NW v Ginsberg, because it's a different set of facts.
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Old Feb 13, 2020, 3:03 pm
  #2553  
mia
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In other news, Alaska Airlines will be joining the OneWorld alliance in 2021, which implies a closer relationship with AA, and opens a strategy of crediting AA flights to AS, and using Alaska Airlines' credit card to earn additional miles. Discussion here: https://www.flyertalk.com/forum/alas...-oneworld.html
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Old Feb 13, 2020, 3:10 pm
  #2554  
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Originally Posted by mia
In other news, Alaska Airlines will be joining the OneWorld alliance in 2021, which implies a closer relationship with AA, and opens a strategy of crediting AA flights to AS, and using Alaska Airlines' credit card to earn additional miles. Discussion here: https://www.flyertalk.com/forum/alas...-oneworld.html
There are lots of current options for earning free flights and oneworld status by crediting AA flights to other programs. For those who regularly travel in premium cabins, BA Executive Club can make sense, if one also plans to fly at least four BA-coded flights per earnings year; and Iberia Plus can make sense if one has no plans to fly a particular number of flights on carriers other than AA.

Last edited by guv1976; Feb 13, 2020 at 3:50 pm
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Old Feb 13, 2020, 3:19 pm
  #2555  
mia
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Originally Posted by wiivile
All that matters is that it prevents AA from getting a court to dismiss....
I wouldn't be so confident of a court's decision on a motion.

The text quoted in my previous post is not from the actual decision. Here it is:

Respondent and amici suggest that Wolens is not controlling because frequent flyer programs have fundamentally
changed since the time of that decision. We are told that “most miles [are now] earned without consuming airline
services” and are “spent without consuming airline services.” Brief for State of California et al. 18 (emphasis
deleted). But whether or not this alleged change might have some impact in a future case, it is not implicated here.
In this case, respondent did not assert that he earned his miles from any activity other than taking flights or that he
attempted to redeem miles for anything other than tickets and upgrades. See Tr. of Oral Arg. 47–48.
https://www.supremecourt.gov/opinion...2-462_p8k0.pdf

Note that the argument made was that miles are earned -and- redeemed for activities other than flying. A court may find that you need to satisfy -both- conditions (earning -and- redeeming) to avoid dismissal. If a litigant earns -some- miles from flying, and redeems -some- miles for flights it isn't obvious to me how a court would rule.

If one is seriously interested in this topic I would read the briefs filed on this aspect.
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Old Feb 13, 2020, 3:47 pm
  #2556  
 
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Originally Posted by flyer4512
I closed all of our AA cards in the days after we were locked. IMO people with locked/term accts should close all AA cards.

I have no idea if Citi packages debt and thus our ~800 credit scores help them but since I'm never using the cards again I have no need keep them open.
I suspect a lot of us are going through that, and I don't know if Citi will feel a dent.
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Old Feb 13, 2020, 4:10 pm
  #2557  
 
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Originally Posted by cheaptom
I suspect a lot of us are going through that, and I don't know if Citi will feel a dent.
Probably not but it the #'s are correct they are closing 10,000 AA accounts and if all of those accounts had just 2 open AA cards that 20,000 AA cards off the books from people who have a very low credit risk.

Citi was giving out these cards and the bonus miles to churners for a reason, I have no idea exactly why........a bank would ever fudge #'s..........lol
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Old Feb 13, 2020, 4:30 pm
  #2558  
 
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Originally Posted by cheaptom
I suspect a lot of us are going through that, and I don't know if Citi will feel a dent.
Originally Posted by flyer4512
Probably not but it the #'s are correct they are closing 10,000 AA accounts and if all of those accounts had just 2 open AA cards that 20,000 AA cards off the books from people who have a very low credit risk.

Citi was giving out these cards and the bonus miles to churners for a reason, I have no idea exactly why........a bank would ever fudge #'s..........lol
Citibank has over ~200,000,000 accounts
Citibank has over ~50,000,000 credit card account holders.

If everyone caught in this - say 20,000 - canceled their accounts, it represents .04% of accounts
In other words, this is nothing. Not a footnote. Not even a rounding error. It won't be noticed.

And, given the way churners open accounts, spend the minimum and then open another account and repeat, I would guess these accounts are not profitable. So Citi might be quite happy to see these folks go.
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Old Feb 13, 2020, 4:37 pm
  #2559  
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Originally Posted by wekxbrainx
lol Thanks! That's so true! Is that what other is currently doing? Just don't know if AA will suspend these account later.
They most definitely will.
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Old Feb 13, 2020, 4:41 pm
  #2560  
 
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Originally Posted by bayareas
https://prefunds.aa.com/refunds/refundsContact

Refunds will go back to canceled cards after 5 days .
Thank you. That's helpful!
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Old Feb 13, 2020, 4:41 pm
  #2561  
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Originally Posted by wiivile
All that matters is that it prevents AA from getting a court to dismiss a complaint based on state or local law solely because of NW v Ginsberg, because it's a different set of facts.
Not correct. It requires someone to argue WHY the distinction matters and WHY the case should not be dismissed. The Judge, lacking any direction from the Supreme Court, can rule either way.
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Old Feb 13, 2020, 4:41 pm
  #2562  
 
Join Date: Mar 2003
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Originally Posted by sethMCOflyer
If you call they’ll just direct you to the AA Prefunds website, their shutdown email is wrong.
Thank you!
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Old Feb 13, 2020, 5:22 pm
  #2563  
 
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Originally Posted by Global321

And, given the way churners open accounts, spend the minimum and then open another account and repeat, I would guess these accounts are not profitable. So Citi might be quite happy to see these folks go.
Makes you wonder why they issued a half million AA cards to churners who were just collecting the miles...............Something tells me they knew what was going on and had a reason as to why they allowed it.

Maybe Citi just liked buying miles from AA to hand out, lol

They sure tried hard to keep us as customers as we canceled 15 AA cards.............oh wait I have another to cancel, followed by silence from the Citi agent, lol
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Old Feb 13, 2020, 5:42 pm
  #2564  
 
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Originally Posted by flyer4512
Makes you wonder why they issued a half million AA cards to churners who were just collecting the miles...............Something tells me they knew what was going on and had a reason as to why they allowed it.

Maybe Citi just liked buying miles from AA to hand out, lol

They sure tried hard to keep us as customers as we canceled 15 AA cards.............oh wait I have another to cancel, followed by silence from the Citi agent, lol
Citi is not a unitary entity, and if it were it would probably be happy to be rid of churners. But, the people in the best position to know or do something about churners may also be the same people getting bonuses tied to metrics that churners help to optimize.
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Old Feb 13, 2020, 5:58 pm
  #2565  
mia
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Originally Posted by flyer4512
Makes you wonder why they issued a half million AA cards to churners....
This is not the first time this question has been discussed in this forum (going back some years) or in this thread (just last month). Scroll back to post 1917 and read forward a few pages.
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