Over the past few years I and my family have accumulated $35k worth of points for free. I have also redeemed them for travel worth around $15k. It is incredible to receive so much for free. I have some scruples now about doing this. Is this ethical?

I see it as the cost of doing business for large companies. Also in a way you are capitalizing off the stupidity of average Joe's. The average Joe signs up for the credit card and only accumulates debt. Thereby their loss is your gain.

It is completely ethical. Why wouldn't be? The people giving you the miles are OK with it, so do it.

I think charging 18% interest on credit card debt (and jacking up fees and rates when legislation is put into effect to regulate credit cards) when the Fed charges approximately 0% is unethical. Whatever miles or points I have gained in exchange for obtaining and using a credit card or purchasing a product is totally cool with me. And noting is "for free". The companies award miles or point to generate business, and wouldn't do it if it it were not, overall, successful and profitable for them. No ethical angst whatsoever.

Send it to the Ethicist.

Yes, you are capitalizing on Average Joes, but how is this different from any other advertising campaign?

You could ameliorate your guilt by spreading the word about good money sense. Of course, that would put these companies out of business and there wouldn't be sign-up bonuses anymore.

Good one, but I don't particularly agree with The Ethicist many times..

I see nothing wrong with capitalizing off the stupidity of the average Joe. They have the same opportunities I do.

Mike

The miles incentives has you spending alot of money on their cards etc.... All about generating business!

Miles and points are an incentive program, just like any other incentive program - why would it be unethical? They are not free. Their cost is calculated and included in the cost of doing business, in the cost of the rates and fees they charge.

Nothing unethical whatsoever. They offer miles. You earn miles in accordance with their program. They have succeeded in their efforts, as have you. No one has been taken advantage of. Not everyone takes full advantage of sales promotions, but some do, and that was understood by all involved. Enjoy the fruits of you efforts. You earned every bit of them honestly, and I'm sure that the entities that issued you the miles would agree.

Research has shown that when a product is pretty much the same for everyone, and its repurchase frequency is high, one the most effective ways to spend marketing money is on loyalty programs. If airlines, etc., didn't have these programs, or if the programs didn't work, they'd need to do something else - which would cost them more.

So, think of it as doing them a favor!

(Slightly tongue in cheek, but the basic facts are correct.)

We rationalize lot of our activities and keep cashing in on "opportunities". It is only when our conscience starts to hurt that we stop and re-evaluate our behavior. It appears that you have reached that point. So, you must live with your newfound "higher ethical standards". As far the rest of us, we are happy with what we are doing. Please spare us the soapbox sermon. Thanks!

I have reached the point where I do not tell anybody else about it. I used to believe people thought I was "smart" for doing this. But after my advice falling on so many deaf ears I realize people just think I am crazy, cheap and unethical...

They can't think you are "smart," because that would mean that they are "stupid."

Here's another example. Companies regularly offer mail-in rebates on products, rather than simply lowering the price for everyone. Why? Because then they can market them at the net after-rebate cost, knowing full well that a substantal percentage of consumers will never bother to send in the rebate, or not provide all the correct documentation, or that some will even get lost in the mail. Overall, they calculate the marketing costs and return on investment and decide to offer the rebate as an incentive based on conisderably less than 100% participation. Same with gift cards. They are counting on all those who will lose or never fully use them.

So if you buy and send in and receive the rebate you are entitled to or use every cent of your gift card, are you unethically taking advantage of the average Joes who don't???

Frequency programs are a really just a bribe. Society views them as acceptable though, so we don't actually call them that.

Don't get me wrong. I am a member of multiple programs myself......