Schwab offers that cashout feature to its accounts. Of course it can take action in case of fraud. There was no fraud here. There was no claim by Schwab of fraud.

If Schwab wants to limit the redemption feature, it should state the limits. Instead, it offers supposedly unlimited redemptions--and then closes accounts when customers do too large redemptions or redemptions too fast or redemptions that make the account unprofitable by Schwab's metrics. There is no provision in its contract for closing accounts that are unprofitable.

Oh, I know that Schwab somewhere has some boilerplate clause saying it can close accounts at any time for any reason or no reason. So, sure, I grant your point--doing so probably isn't illegal. But it sure is unfair. By doing so, it makes its claims that redemptions are unlimited a lie. That's false advertising and deception--and I don't have to be a lawyer to call that illegal.

Banks would not want to wait until fraud happens. They have the risk department to monitor potential and possible risk to happen. This is risk prevention. That is clearly a risky behavior.

Also, what normal people can accumulate millions of MRs and bring them to the bank to cash out??

Since August 2018 I have completed 5x Citi AA Biz Bonus, 1x Barclays Aviator Biz Bonus, 1x Citi AA Personal Bonus (pending, but MSR is complete so no way to avoid this).

In total that makes 7x Sign Up Bonuses in approx 18 months.

Points just posted yesterday from the most recent biz app.

I did buy mailers off reddit that we�re not in my name. I never closed AA biz cards prior to approval, only closing once the AF hit.

Admittedly I haven�t followed this shutdown story much and don�t know what the official threshold is, and have never used AA miles, but I am not planning a trip for the fall and would be furious if they ban/cancel all future reservations.

How likely is it I make it out of this unscathed?

Schwab didn't award the MRs--AmEx did. There's no risk to Schwab in fulfilling its terms with AmEx and cashing them out at the contracted rate.

What's "normal" is a matter of opinion. (Remember Young Frankenstein's brain A. B. Normal?) And it's irrelevant.

You have no evidence for your guess of Schwab's reason. I have no evidence for my guess. My guess is that Schwab doesn't like paying out on MRs earned by spending on non-Schwab AmEx cards. It agreed to do so, but it has no compunctions about reneging on its promise to do so if that becomes unprofitable.

Again, there are better ways to limit its costs. Lying and false advertising is not right. Schwab could easily say that only MRs earned through spending on Schwab cards are redeemable, for example. It hasn't done that. It just kills accounts of people who aren't profitable. It's not a question of risk at all.

There's a whole thread in Citi forum on this. Not many reports on business cards, but if it appears they are shutting down for multiple bonuses no matter what... nobody knows for sure though.

Just found that chase shut down my Freedom (2y10m old) and United (4m old), no MS on those two cards.
Got unsatisfied relationship back in 2014 due to BP/MS on ink card, ever since then all business card will be closed within one month opening. Surprised that they close my freedom and UA card now since they have been opened for a while. Things I can come up would be put 6k on United card for the additional 10000 bonus. But all are legitimate purchase and paid with my checking account.

Any thought ?

Unfortunately, because of your history with Chase this can happen anytime. I have exactly the same situation, and my cards with Chase barely survive a year.

You don't need to do MS with Chase to get eyes on your account - Chase does a soft pull form credit agencies almost every month and if their algorithms don't like something on your report (high balances, recent applications, spike in something else) - it may go to manual review and then your history with Chase is revealed and outcome is simple - a shutdown.

That being said, I think there are plenty of datapoints that point to the Bill Pay being the issue in the post you quoted and not the MS on the ink. Cycling credit limits ( I think this may be what you were referencing as "high balance" ) is also a known no no.

I guess OP said that BP was in the past (when first shutdown happened).

Pluuuheez. Enough of this oh-so-tiresome moralizing. The entire point of having a Schwab account was to xfer MRs to it - otherwise he would have kept money in it to invest. This data point is useful - I've transferred millions of MRs to Schwab solely to cash out. I usually leave a few thousand just sitting in some money market, so perhaps that's kept them off my back.

This is not even the good way to use MR points. So I do not see the points of doing all the hard work and not use the best way. But you have some way to take advantage of MR points (like work related travel etc.), I figure you have to find some way to cash it out. This is a moot point for most people.

Exactly
He used Schwab as a conduit for cashing out MRs and had no other assets with them.
You do.

You answered your own question.

Have anyone been shutdown from BofA? BofA closed all my accts including my personal and business checking. Is this normal? I see alot of random post online outside flyertalk mention that it could be due to incorrect information at CHEXSYSTEM.

I have a 18yrs relationship with them and platinum honor plus status since status inception.

I have not seen anyone here that have been shutdown by BofA.

Any help would be appreciated. Just want to know why and BofA won't elaborate beyond "it's a business decision".

Thanks,

Most people can pretty much guess why they're shut down. I imagine you either MS'd one of their credit cards or deposited money orders into your bank account.

Plenty have been closed by BoA. Some for doing "too much" (aka rewards abuse) and are fired because they've been a money-losing customer to the banksters. Others get booted for what they deem risky banking behavior. Some get closed for a combination of both - risky bank behavior focuses eyeballs on what they perceive as reward abuse (or vice versa) and they close you down. Length of relationship doesn't mean anything.

Curious what you think got the wrath of BoA? Hopefully, you were in the "too much" camp and not the risky banking behavior camp.