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MP Accounts Closed by UA Alleging Fraud/Misuse

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MP Accounts Closed by UA Alleging Fraud/Misuse

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Old Jan 19, 2020, 5:05 am
  #1561  
 
Join Date: Apr 2007
Programs: DL PM, UA 1K, Bonvoy Platinum elite Lifetime Gold, Hertz President's Circle
Posts: 127
Originally Posted by narvik
1 million miles, and he has the need to [illegally] buy more?

Or were those million award miles also bought not-from-UA?




Or, in this case, a one way dishonestly program.




Sorry, I don't buy that.
I did a quick google search, and I can't even find a place where one would buy award miles illegally. How would that even work?
Do you maybe mean he tried to buy upgrade certificates, i.e. PlusPoints?
eBay has no listings either.
One has to be pretty shrewd it seems...
No. He bought United points from a broker. Not upgrades.

The existing points were a mix of earned BIS and transfers from his own UR.
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Old Jan 19, 2020, 5:09 am
  #1562  
 
Join Date: May 2010
Location: AVP & PEK
Programs: UA 1K 1.9MM
Posts: 6,352
Originally Posted by samcmontreal
No. He bought United points from a broker. Not upgrades.

Title says: "My friend got his 1K closed by MP for buying miles"

Post says: "Roughly 1 million points and 500 plus points and only an email telling him to pound sand."

There's United Award miles used for award travel & upgrades, and merchandise, etc.; and United PlusPoints used for upgrades.
What did he buy?



Added: so the "1 million" is/was his Lifetime miles balance?

Okay, I see the answer in post number 1561 now...
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Old Jan 19, 2020, 5:11 am
  #1563  
 
Join Date: Apr 2007
Programs: DL PM, UA 1K, Bonvoy Platinum elite Lifetime Gold, Hertz President's Circle
Posts: 127
Originally Posted by narvik
Title says: "My friend got his 1K closed by MP for buying miles"

Post says: "Roughly 1 million points and 500 plus points and only an email telling him to pound sand."

There's United Award miles used for award travel & upgrades, and merchandise, etc.; and United PlusPoints used for upgrades.
What did he buy?
Sorry for not being clear.
He bought award miles used for award travel.

Total loss of 1 million award miles & 500 plus points.
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Old Jan 19, 2020, 5:25 am
  #1564  
 
Join Date: May 2010
Location: AVP & PEK
Programs: UA 1K 1.9MM
Posts: 6,352
Originally Posted by samcmontreal
He bought 150K miles.
Was he aware that he could have bought those 150000 award miles from United for about U$3200.00, incl. taxes and fees?

If he was, I wonder why he thought that it was legitimate when he bought them for [presumably considerably] less from some dubious "broker"?
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Old Jan 19, 2020, 5:31 am
  #1565  
 
Join Date: Apr 2007
Programs: DL PM, UA 1K, Bonvoy Platinum elite Lifetime Gold, Hertz President's Circle
Posts: 127
Originally Posted by narvik
Was he aware that he could have bought those 150000 award miles from United for about U$3200.00, incl. taxes and fees?

If he was, I wonder why he thought that it was legitimate when he bought them for [presumably considerably] less from some dubious "broker"?
He claims he was aware of United selling award miles but did it for the price savings not realizing he put his whole account at risk. I still think what United did was a bit harsh without any warning or phone call. Just an email and poof all gone.
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Old Jan 19, 2020, 6:38 am
  #1566  
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Join Date: Apr 2006
Location: Los Angeles, California
Programs: United, American, Delta, Hyatt, Hilton, Hertz, Marriott
Posts: 14,802
Originally Posted by samcmontreal
2 year as 1K. 40K/ year spend. Roughly 1 million points and 500 plus points and only an email telling him to pound sand. I think he genuinely did not know this was an issue.

This is a one way loyalty program.
It always has been a one-way loyalty program.
ContinentalFan is offline  
Old Jan 19, 2020, 9:52 am
  #1567  
 
Join Date: Oct 2015
Location: SAN
Programs: 1K (since 2008), *G (since 1990), 1MM
Posts: 3,219
Originally Posted by samcmontreal
2 year as 1K. 40K/ year spend. Roughly 1 million points and 500 plus points and only an email telling him to pound sand. I think he genuinely did not know this was an issue.

This is a one way loyalty program.
Unless your friend is 20 years old (no offense to 20 year olds) and still wet behind the ears when something seems too good be to true, i.e. I can buy miles from United for $x or from someone else for a steep discount off $x, it probably is too good to be true. I do not buy that an experienced traveler did not think it was an issue, I suspect "your friend" did not think they would be caught and if they were caught the consequence would be minimal. I for one am glad that UA is closing MP accounts for selling/buying miles/points/certificates. If someone has that many miles and that many PlusPoints why on earth are they buying miles from someone else?

I do think as someone noted upthread if you have the ability to buy and sell the miles/points/certificates then that monetary value should be taxed as under the tax code anything you receive is taxable - "your friend" should issue a Form 1099 to the person he purchased the miles from! UA has to pay tax on the miles they sell to customers.
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Aussienarelle is offline  
Old Jan 19, 2020, 10:16 am
  #1568  
 
Join Date: Apr 2007
Programs: DL PM, UA 1K, Bonvoy Platinum elite Lifetime Gold, Hertz President's Circle
Posts: 127
Originally Posted by Aussienarelle
Unless your friend is 20 years old (no offense to 20 year olds) and still wet behind the ears when something seems too good be to true, i.e. I can buy miles from United for $x or from someone else for a steep discount off $x, it probably is too good to be true. I do not buy that an experienced traveler did not think it was an issue, I suspect "your friend" did not think they would be caught and if they were caught the consequence would be minimal. I for one am glad that UA is closing MP accounts for selling/buying miles/points/certificates. If someone has that many miles and that many PlusPoints why on earth are they buying miles from someone else?

I do think as someone noted upthread if you have the ability to buy and sell the miles/points/certificates then that monetary value should be taxed as under the tax code anything you receive is taxable - "your friend" should issue a Form 1099 to the person he purchased the miles from! UA has to pay tax on the miles they sell to customers.
That is a lot of assumptions including "but not limited to" knowledge of frequent flyer rules (most non FTers I meet have no idea about most of the rules and benefits) and citizenship and tax residency obligations.
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Old Jan 19, 2020, 10:21 am
  #1569  
 
Join Date: Jan 2013
Location: Hawai'i Nei
Programs: Au: UA, Marriott, Hilton; GE
Posts: 7,142
Originally Posted by samcmontreal
That is a lot of assumptions including "but not limited to" knowledge of frequent flyer rules (most non FTers I meet have no idea about most of the rules and benefits) and citizenship and tax residency obligations.
I did not notice it mentioned: Exactly how did your friend seek to purchase miles, and what was your friend's plan for the miles once purchased?
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Old Jan 19, 2020, 10:32 am
  #1570  
 
Join Date: Feb 2005
Location: CLE, DCA, and 30k feet
Programs: Honors LT Diamond; United 1K; Hertz PC
Posts: 4,164
Originally Posted by samcmontreal
That is a lot of assumptions including "but not limited to" knowledge of frequent flyer rules (most non FTers I meet have no idea about most of the rules and benefits) and citizenship and tax residency obligations.
The rules are not hidden. Someone can choose to read them or choose to remain willfully ignorant of the rules -- but there's no excuse if you choose that path, violate a rule of the program and get caught.

It's not even necessary to click a link to see them when enrolling in MP...they're directly above the "Accept and Enroll" button and easily Google-able if someone wants or need to refresh their memory in the future.

lincolnjkc is online now  
Old Jan 19, 2020, 12:00 pm
  #1571  
Suspended
 
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
This.

People spend way, way too much time on FT speculating about who "really" knew something and then disparaging "fine print". Bottom line is that one is free to simply click on "accept" buttons and not read the rules, but one then can't whine about the consequences of not having done so.
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Often1 is offline  
Old Jan 19, 2020, 2:34 pm
  #1572  
FlyerTalk Evangelist
 
Join Date: Jul 2011
Location: RNO
Programs: AA/DL/UA
Posts: 10,775
Originally Posted by samcmontreal
He never bought or sold before. It was 1 million miles worth of flight awards booked. He used all existing miles for future flight awards. He bought 150K miles. United canceled all the tickets worth roughly 1 million MP points and closed his account. At least they refunded all the taxes. Sounds pretty harsh.
Good, frees up award inventory for people who follow the rules.

I've redeemed plenty of award tickets in my life and only once needed to buy more miles to bring someone else with me. I bought them directly from AA.

Is your friend one of those people who would buy batteries from a person selling them in a parking lot at a deep discount to what they normally go for inside the store before they get shoplifted? (i.e. "hot" merchandise)
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Kevin AA is offline  
Old Jan 19, 2020, 3:29 pm
  #1573  
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Join Date: Sep 2003
Location: Honolulu Harbor
Programs: UA 1K
Posts: 15,023
Originally Posted by samcmontreal
...most non FTers I meet have no idea about most of the rules...
Ignorance of rules is not a valid argument to UA. Not knowing the rules is the account holder's choice, not UA's.
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Old Jan 19, 2020, 3:41 pm
  #1574  
Suspended
 
Join Date: Nov 2019
Location: The part of NC where we have electricity, paved roads, and high school diplomas.
Programs: AA Platinum
Posts: 3,132
Originally Posted by samcmontreal
United canceled all the tickets worth roughly 1 million MP points and closed his account.
Good.
WindowSeatFlyer is offline  
Old Jan 19, 2020, 3:52 pm
  #1575  
 
Join Date: Jun 2014
Programs: UA MM
Posts: 4,126
Originally Posted by samcmontreal
That is a lot of assumptions including "but not limited to" knowledge of frequent flyer rules (most non FTers I meet have no idea about most of the rules and benefits) and citizenship and tax residency obligations.
You’re probably right saying most don’t know the rules. That vast majority isn’t trying to buy or sell miles, either.
JimInOhio is online now  


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