Often1

And that is where the greatest risk is to churners.

If DOT does look at this issue and its root causes and determines that the entire churning scheme leads to poor consumer outcomes, it may well take action to reign in carriers and lateral the CC issuing side of this to the various federal and state bank regulators.

audifan27

AFAIK, the DOT doesn’t have the authority to regulate credit cards. That said, who cares if the requirements get tightened? What good is churning cards if the airline can ignore application terms and wipe out accounts on a whim?

Global321

Feel free to post a screenshot of DOT letting you know they requested more information from AA.

If it exists, it would be most educational, as it has never happened before after a consumer complaint.

audifan27

Their website says otherwise

DOT’s Office of Aviation Enforcement and Proceedings may pursue enforcement action against an airline that engages in an unfair and deceptive practice relating to a frequent flyer program.

VegasGambler

This is from the DOT website:

DOT has the authority to investigate unfair or deceptive practices in air transportation, including complaints from consumers regarding airlines’ frequent flyer programs

This is extremely clear.

Global321

It says they may... Once again, it has never happened before.

DOT also says... If you are dissatisfied with the way a program is administered, changes which may take place, or the basic terms of the agreement, you should complain directly to the company. If such informal efforts to resolve the problem are unsuccessful, you may wish to consider legal action through the appropriate civil court.

Re-read the previous posts, especially the ones that are from the DOT website where they admit they have NEVER investigated a FF program from a consumer complaint. Thus, if it happened this time, it would helpful to see a screenshot as it would be a change in past practice.

If it exists, getting it picked up by a news agency - that AA is under DOT investigation for its FF program - would surely be a pretty big aviation news story.

richarddd

That it has the authority does not mean it has or will exercise the authority.

VegasGambler

I cannot predict what the DOT will do. And, neither can you.

The post I was replying said "DOT is telling you... We will not investigate. " And that is completely false. On the contrary, DOT is telling you that they have the authority to investigate, and encourage you to send them complaints about FF programs if you feel that the airline is engaging in unfair and deceptive business practices.

guv1976

While admittedly involving a very different issue than what's involved in this thread, my consumer complaint against the Iberia Plus FFP for improperly collecting PFCs on zero-fare, zero-surcharge award tickets for domestic (U.S.) travel on AA was zealously pursued by the DOT, even after Iberia's initial response to the DOT was to defend the practice.

Iberia agrees to refund improperly-collected PFCs on certain redemption tickets.

Iberia subsequently proactively reached out to other, similarly-situated Iberia Plus members, and issued refunds to them, as well.

I'm not suggesting what, if anything, the DOT would do about AA-shutdown complaints, but at least in my case, DOT did follow up with Iberia after the latter initially defended an improper practice.

Global321

Thanks for posting! Good to have some facts. As you mention it is a very different situation, as it was not about the program but more about a fee charged on a ticket. (Clearly wrong in IB's case.) The challenge with AA is the shutdown argument is saying AA should not have done it, without being able to say, 'right here in the rules it says you can't do what you did'. AA is going to say we decided it was wrong and the rules say we get to decide what is right and wrong and by the rules we get to decide the punishment. A tall order.

billybayswater

You clearly aren't as privy to all "private" data points out there as you let on earlier, since these screenshots have been posted in private chats and on reddit multiple times.

TBF, there's absolutely no guarantee that they will actually do anything, but it is confirmed they requested more information from AA after AA issued boilerplate responses to multiple DOT complaints that were essentially identical to the initial shutdown emails they sent.

economyfly

Not only has it happened before that the DOT got involved (requesting information and much more) but several FTers have had long standing and very successful experiences with the DOT against airlines. I suggest everyone shutdown file with the DOT as they can be extremely helpful and have the authority to do so.

GUWonder

That it has the authority does mean just that: it has the authority.

Global321

While I do have access to quite a bit, sure, I don't have access to everything.

Do tell us, why is the letter from DOT saying they are investigating AA's FF program such a big secret that it cannot be shared on FT?

We are not talking about DOT and airlines. We are talking DOT and airline FF programs.

I have posted many factual items in the last few days, including DOT's admission they have NOT investigated FF programs. ...

No one, myself included, has said the DOT does not have the authority to investigate. They simply have not done so, by their own admission. (I am sure you are not including the canned response you get from DOT when you lodge a complaint that says they are investigating/looking into xyz.)

If you have a DP where DOT investigated a FF program as to closing accounts, following the rules of the FF program, administering the FF program, canceling accounts, or anything similar, please share. It would be educational.
Every time I have asked for a link or screenshot (e.g. DOT investigating a FF program itself)... crickets. So please share the links and educate us all.

Often1

Please reread what I wrote. Of course, DOT doesn't have the authority to enforce against card issuers. But, it can lateral its findings and other materials, such as complaints themselves.