Elan Financial Services closed my Fidelity account without notice; forfeited all of m
Aug 7, 2019, 5:10 am
#16
Original Poster
Join Date: Feb 2012
Location: MSP
Posts: 376
This is definitely not smart in hindsight. I can't recall if I chose auto or manual deposit.. Given that all of the points were forfeited, it might be that at some point I chose manual..
Aug 7, 2019, 1:36 pm
#17
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,955
I think you need to escalate to management level at Fidelity, by explaining that Elan's conduct is the issue. Fidelity chose them. Fidelity should take responsibility for your satisfaction, and that includes a full explanation. I would focus on service, rather than the money, at the outset.
Aug 8, 2019, 6:09 am
#18
Join Date: Feb 2016
Posts: 292
Doesn't mean I wouldn't try a CFPB complaint anyway - just that the bank does have their behinds covered and is allowed to do what they want with your points.
Aug 8, 2019, 7:03 am
#19
Suspended
Join Date: Jan 2017
Location: EWR/PHL/BWI
Posts: 4,412
Although we all wish this is how it worked, it's not. Reward programs are pretty much unregulated and banks can do what they want - close your account, take your points, change value of points, etc. None of it is illegal. Every reward CC that I've seen has terms and conditions t that state they have the right to take your points at any time for any reason. It may suck, but it's the terms we agree to when opening the account.
In this case, if the CC bank wants to close the account due to inactivity, then it should give advanced notice and allow cardholder to remove or spend the points or miles.
Aug 8, 2019, 7:07 am
#20
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Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
Do not think so. The CC bank can devalue the points or miles, but it can't take your points or miles without any valid reasons. If the cardholder earned the points and miles, they stay with the cardholder. There are various consumer protections in place.
In this case, if the CC bank wants to close the account due to inactivity, then it should give advanced notice and allow cardholder to remove or spend the points or miles.
In this case, if the CC bank wants to close the account due to inactivity, then it should give advanced notice and allow cardholder to remove or spend the points or miles.
Points such as this are not the account holder's property and, if they were, would be taxable income at their fair market value at the time "paid."
Most people would be very much opposed to any plan such as you suggest.
Aug 8, 2019, 7:13 am
#21
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Join Date: Jan 2017
Location: EWR/PHL/BWI
Posts: 4,412
If CC bank promote its CC with economic gains (points), then it is a deceit or fraud to take away this economic gain without any valid reasons. All consumer protection advocates will go after those banks.
Aug 8, 2019, 8:26 am
#22
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Join Date: Aug 2010
Location: DCA
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Posts: 50,262
How are you reporting this "economic gain" on your income tax returns?
Aug 8, 2019, 8:39 am
#23
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Join Date: Jun 2003
Location: Miami, Mpls & London
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JPMorgan Chase & Co. and Chase Bank USA NA have reportedly agreed to pay more than $2 million to settle a class action lawsuit accusing them of unlawfully forfeiting credit card holders’ rewards points upon the closure of Chase credit card accounts.
Sep 3, 2019, 9:28 am
#25
Join Date: Jul 2006
Location: NYC
Programs: DL PM, Marriott Gold, Hertz PC, National Exec
Posts: 6,736
In any event other banks that have confiscated rewards balances when closing accounts have agreed to compensate the account holders: https://topclassactions.com/lawsuit-...on-settlement/
So, no claim that Chase didn't have the right to do what they did, but just a debate over whether Chase had sufficiently informed the plaintiffs that they had the right.
Sep 3, 2019, 5:51 pm
#26
Join Date: Feb 2016
Posts: 292
As that article notes, a key portion of the claim was that "Chase reportedly failed to inform cardholders that their credit card points could be forfeited at any time for any reason at Chase’s discretion."
So, no claim that Chase didn't have the right to do what they did, but just a debate over whether Chase had sufficiently informed the plaintiffs that they had the right.
So, no claim that Chase didn't have the right to do what they did, but just a debate over whether Chase had sufficiently informed the plaintiffs that they had the right.
Sep 4, 2019, 6:48 am
#27
Join Date: Jul 2006
Location: NYC
Programs: DL PM, Marriott Gold, Hertz PC, National Exec
Posts: 6,736
The only possible exception to this is if the card is used to purchase something deductible (i.e. for business purposes, or a charitable donation). Then, the value of the deduction should (at least in theory) be reduced by the value of the credit card points received, just as it would be if the vendor gave you a rebate.
Sep 4, 2019, 6:59 am
#28
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Join Date: Jun 2003
Location: Miami, Mpls & London
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Distinction without a difference. Chase did not have the right BECAUSE they did not follow procedure. Did Elan behave differently than Chase, or did they also fail to provide proper notice?
Sep 4, 2019, 11:01 am
#29
Join Date: Jul 2006
Location: NYC
Programs: DL PM, Marriott Gold, Hertz PC, National Exec
Posts: 6,736
That's just what the plaintiffs claimed. This has never been confirmed by any third party, as the case never went to trial. All we know from that settlement is:
1. Nobody, including the plaintiffs, disputed that Chase has the right to cancel points if it provides proper notice that it has the right to do so.
2. The plaintiffs claimed that Chase didn't provide proper notice.
3. Chase decided it would rather pay $2.3M than litigate the issue.
4. The plaintiffs decided they would rather take $2.3M (including legal fees) than litigate the issue.
Mar 9, 2024, 5:36 pm
#30
Join Date: Jul 2014
Location: JRF
Programs: AA Gold, Marriott Platinum, Hilton Diamond, National Executive Elite
Posts: 1,784
What exactly is Elan Financial? I've seen Elan Financial VGCs from rebates/incentives, and they also seem to do white-label credit cards for financial institutions that don't want to issue their own cards (I received such a solicitation from a local bank today). Are they worth looking into like the big issuers Amex/Barclays/Chase/Citi, etc. or are they like a Synchrony Bank of sorts?