Annual Fee Issue
#1
Original Poster
Join Date: Jul 2001
Location: New York, NY
Posts: 227
Annual Fee Issue -- Updated Explanation
When canceling a credit card several months prior to the annual fee date, is it standard policy to receive a prorated refund of the annual fee? I was recently denied a prorated refund of the annual fee and had about 5 months left till renewal.
See my other post below for the update.
See my other post below for the update.
Last edited by WhiteAMEX; Jul 17, 2005 at 10:10 pm
#2
Join Date: Jan 2005
Location: New York
Programs: AA Plat, CO Gold
Posts: 1,598
The only company I know of that pro-rates the annual fee is Citi. I'm sure there are others, but my impression that is more the exception than the norm. Unless it says in the membership agreement that they will pro-rate the fee, there's probably not much you can do unfortunately.
#3
Join Date: Feb 2005
Programs: DL DM, UA 1K GS, Marriott LT Titanium, Hilton Gold, Avis Chairman, Hertz PC, National EE
Posts: 637
I know American Express and Citibank offer prorated refunds for annual fees. All others are non-refundable (Chase, US Bank, Diners Club, etc). You will need to ask and check the terms and conditions as this does vary from card to card and company to company.
#4
Join Date: Jul 2005
Location: BOI
Programs: UA Silver, DL, AA, WN, Marriott, IHG Plat, Hertz 5*, National Exec
Posts: 285
It never hurts to ask
I had the NW WorldPerks Visa Signature (US Bank) and received a pro-rated refund. The terms stated that within 30 days of paying the fee you can receive a full refund. After that it was a tiered refund structure - I got $45 back ($90 fee), which was better than nothing. Paid annual fee on April 11th, closed card on July 1st.
#5
Join Date: Feb 2005
Programs: DL DM, UA 1K GS, Marriott LT Titanium, Hilton Gold, Avis Chairman, Hertz PC, National EE
Posts: 637
Originally Posted by JeffISU
I had the NW WorldPerks Visa Signature (US Bank) and received a pro-rated refund. The terms stated that within 30 days of paying the fee you can receive a full refund. After that it was a tiered refund structure - I got $45 back ($90 fee), which was better than nothing. Paid annual fee on April 11th, closed card on July 1st.
#6
Original Poster
Join Date: Jul 2001
Location: New York, NY
Posts: 227
Better Explanation of the Situation
I should elaborate here; I had the Chase Visa Infinite Card with an annual fee of $150 paid every November. In January I received notification from Chase that the rewards program was being reworked and I would receive information about the new rewards system in June. Additionally, no points would be earned during that period, but in June I would receive 8,000 bonus points.
Well, come June I received a letter stating that Chase was discontinuing the card and would change me over to another card that has no annual fee. Therefore, I opened a dispute with the company to attempt to get a prorated refund of the remaining 5 months of the annual fee. I received notification in the mail referring to the terms of the card, which stated that the card must be cancelled within 30 days to receive a refund of the annual fee. My dispute was denied.
It all seems a bit shady. I believe Chase likely knew of the cards discontinuance before January and was simply attempting to pocket the annual fee here. What recourse do I have, now that my dispute was denied?
Well, come June I received a letter stating that Chase was discontinuing the card and would change me over to another card that has no annual fee. Therefore, I opened a dispute with the company to attempt to get a prorated refund of the remaining 5 months of the annual fee. I received notification in the mail referring to the terms of the card, which stated that the card must be cancelled within 30 days to receive a refund of the annual fee. My dispute was denied.
It all seems a bit shady. I believe Chase likely knew of the cards discontinuance before January and was simply attempting to pocket the annual fee here. What recourse do I have, now that my dispute was denied?
#7
Join Date: Feb 2005
Programs: DL DM, UA 1K GS, Marriott LT Titanium, Hilton Gold, Avis Chairman, Hertz PC, National EE
Posts: 637
Originally Posted by WhiteAMEX
I should elaborate here; I had the Chase Visa Infinite Card with an annual fee of $150 paid every November. In January I received notification from Chase that the rewards program was being reworked and I would receive information about the new rewards system in June. Additionally, no points would be earned during that period, but in June I would receive 8,000 bonus points.
Well, come June I received a letter stating that Chase was discontinuing the card and would change me over to another card that has no annual fee. Therefore, I opened a dispute with the company to attempt to get a prorated refund of the remaining 5 months of the annual fee. I received notification in the mail referring to the terms of the card, which stated that the card must be cancelled within 30 days to receive a refund of the annual fee. My dispute was denied.
It all seems a bit shady. I believe Chase likely knew of the cards discontinuance before January and was simply attempting to pocket the annual fee here. What recourse do I have, now that my dispute was denied?
Well, come June I received a letter stating that Chase was discontinuing the card and would change me over to another card that has no annual fee. Therefore, I opened a dispute with the company to attempt to get a prorated refund of the remaining 5 months of the annual fee. I received notification in the mail referring to the terms of the card, which stated that the card must be cancelled within 30 days to receive a refund of the annual fee. My dispute was denied.
It all seems a bit shady. I believe Chase likely knew of the cards discontinuance before January and was simply attempting to pocket the annual fee here. What recourse do I have, now that my dispute was denied?
I have always had mediocre to bad experiences with Chase and will discontinue my relationship with them once my renewal for the Chase Continental World comes up.
#8
Original Poster
Join Date: Jul 2001
Location: New York, NY
Posts: 227
Originally Posted by Kyle53719
Well, it is certainly not your fault that they discontinued the program. I don't know what else you could do since you already complained to their disputes department. Since it was an involuntary change from their Visa Infinite product to, I would assume, a Signature product I would note that you are losing the infinite benefits that you have pre-paid for. That's almost $75 that you are losing.
I have always had mediocre to bad experiences with Chase and will discontinue my relationship with them once my renewal for the Chase Continental World comes up.
I have always had mediocre to bad experiences with Chase and will discontinue my relationship with them once my renewal for the Chase Continental World comes up.
#9
Join Date: Apr 2004
Location: ATL
Programs: SPG gold; otherwise just base in everything so far, but learning!
Posts: 489
Originally Posted by WhiteAMEX
Thanks for the reply. I should also mention that Chase effectively held my rewards points hostage during the January to June period. I couldn’t use the points as they claimed the rewards program was being restructured. Furthermore, once I was notified of the discontinuance in June, I still could not use my points and was automatically enrolled in the replacement card. I had no choice but to accept the replacement card, a Visa Signature product, and was given no access to my points until the card was officially issued to me during the last week of June. I would like to file a complaint with the FDIC or FCC, but I’m unsure which authority is the appropriate contact here. If anyone has any advice I would appreciate it.
I agree that their actions were out of line. To hold your points and not let you use them while they decide what to do is ridiculous. What if AMEX decided to stop any usage of Membership Rewards points while they "restructured" the program, and then decided to cancel the program, or convert all to MR Options. Just a crude analogy, but I think it works. You were not supplied the product for which you paid; therefore, a refund is indicated. But the greater issue is the loss of all your accumulated points. Will they compensate you for those?
#10
Join Date: Jul 2005
Location: BOI
Programs: UA Silver, DL, AA, WN, Marriott, IHG Plat, Hertz 5*, National Exec
Posts: 285
Originally Posted by Kyle53719
Did you have to ask for yours? I cancelled mine mid cycle and never got a refund. Maybe I was just unlucky, but I didn't ask for a refund or anything.
#11
Join Date: Feb 2005
Programs: DL DM, UA 1K GS, Marriott LT Titanium, Hilton Gold, Avis Chairman, Hertz PC, National EE
Posts: 637
Originally Posted by JeffISU
Yes, I asked for it, and make sure you then also request a check be mailed to you. Even if they credit you for the fee, you need to request that they actually send you the money . After requesting the check it arrived in a few days. I'd still call in to see if they can give you something back for your fee.
#12
Join Date: Aug 2004
Location: Kamuela, Hawaii
Programs: Marriott Titanium, Hilton Diamond, AA Plat, UA Silver, AS MVP, HA premier
Posts: 509
Originally Posted by fuzz
I think it would be the FTC, the Federal Trade Commission. I might also contact the Better Business Bureau and your state's Attorney General. In additon, I have heard that comments posted on www.planetfeedback.com do reach their intended recipient.
I agree that their actions were out of line. To hold your points and not let you use them while they decide what to do is ridiculous. What if AMEX decided to stop any usage of Membership Rewards points while they "restructured" the program, and then decided to cancel the program, or convert all to MR Options. Just a crude analogy, but I think it works. You were not supplied the product for which you paid; therefore, a refund is indicated. But the greater issue is the loss of all your accumulated points. Will they compensate you for those?
I agree that their actions were out of line. To hold your points and not let you use them while they decide what to do is ridiculous. What if AMEX decided to stop any usage of Membership Rewards points while they "restructured" the program, and then decided to cancel the program, or convert all to MR Options. Just a crude analogy, but I think it works. You were not supplied the product for which you paid; therefore, a refund is indicated. But the greater issue is the loss of all your accumulated points. Will they compensate you for those?
#13
Original Poster
Join Date: Jul 2001
Location: New York, NY
Posts: 227
Update
Originally Posted by RLG
I would also file a complaint with the new york state banking commission.
#14
Join Date: Feb 2004
Location: North Carolina
Posts: 49
I applied for the Worldperks Visa Signature card and then downgraded it to the no annual fee Worldperks Visa card within 30 days. I did have to ask for a refund of the annual fee, and got the entire amount credited. They said that if you downgrade within the first 8 months you would get at least some of your annual fee back.
Originally Posted by Kyle53719
Did you have to ask for yours? I cancelled mine mid cycle and never got a refund. Maybe I was just unlucky, but I didn't ask for a refund or anything.