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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 Dec 23, 2019, 12:37 pm
  #1471  
 
Join Date: Oct 2009
Programs: UA 1K, Hilton ♦ , Hyatt Carbonado, Wyndham ♦, Marriott PE, "Stinking Bum" elsewhere.
Posts: 5,000
Originally Posted by seenitall
Here's a thought. If a MP participant sells GPUs or RPUs and UA finds out, it can give the member two choices.
  1. It confiscates the instruments and closes the member's account; or
  2. It notifies that IRS that this member has unreported income and may be committing tax fraud.
Participant's choice.
While I am all in favor of sending 1099s to businesses and individuals who may be underreporting income or overdeducting expenses (e.g. to a property owner that I leased from who refused to compensate me for my attached equipment and improvements when the lease ended but who, deducted and depreciated said improvements), to go a step further and imply that they are committing fraud is unnecessary and possibly legally problematic.
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Last edited by zombietooth; Dec 23, 2019 at 12:48 pm
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Old Dec 23, 2019, 1:03 pm
  #1472  
 
Join Date: Feb 2005
Location: CLE, DCA, and 30k feet
Programs: Honors LT Diamond; United 1K; Hertz PC
Posts: 4,165
Originally Posted by zombietooth
While I am all in favor of sending 1099s to businesses and individuals who may be underreporting income or overdeducting expenses (e.g. to a property owner that I leased from who refused to compensate me for my attached equipment and improvements when the lease ended but who, deducted and depreciated said improvements), to go a step further and imply that they are committing fraud is unnecessary and possibly legally problematic.
I am certainly not a lawyer but doesn't "do this and I won't report a crime" / "don't do this and I'll report a crime" where "this" is voluntarily forfeit instruments coercion that's getting dangerously close to crossing the line into extortion?
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Old Dec 23, 2019, 1:49 pm
  #1473  
Moderator: United Airlines
 
Join Date: Jun 2007
Location: SFO
Programs: UA Plat 1.995MM, Hyatt Discoverist, Marriott Plat/LT Gold, Hilton Silver, IHG Plat
Posts: 66,856
Let's leave the tax issues for another forum.
Returning to our regularly scheduled topic


Thanks

WineCountryUA
UA coModerator
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Old Dec 24, 2019, 5:58 am
  #1474  
 
Join Date: Jul 2012
Posts: 1,115
Originally Posted by Kevin AA
Since Day One of the Airline Frequent Flyer Programs, you earn miles to be used to a free ticket.
Prefer not to embrace and spread the notion that it is a "free ticket". There are costs for award travel, it's just that the airline coughs them up (or they compensate OAL). For some misinformed agents, the incorrect notion that is free also seems to justify differential treatment of pax traveling on an award because they're "just on a free ticket". Ironically, the same agents often don't extend that judgment of "free tickets" to non-revs.

Originally Posted by Mike Jacoubowsky
But spoilage is what makes the system semi-workable
Airlines prefer the term breakage

Originally Posted by eng3
I've met many people who are unaware that they can't sell their miles.
It's not "their" miles to begin with. IIRC it was made very clear when I signed up for UAMP many years ago that I don't own any of the miles, which also explains why those miles can expire, why the expiry date for already awarded miles can change, and why you can't sell them. Not sure how that idea of personal miles ownership came to be. I'm guessing it's the travel/loyalty blogs with their affiliate articles for credit cards again?
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Old Dec 24, 2019, 7:07 am
  #1475  
 
Join Date: Sep 2008
Location: SF Bay Area
Programs: None - previously UA
Posts: 4,866
Originally Posted by dgcpaphd
Not to be smart but "common sense" is not common.

Warnings or more notifications by UA should be given considering the outcome for a violation is so severe.
It’s clearly in the terms and conditions (“10. Prohibition of sale or barter.”) Where else would they possibly need it?

United doesn’t need to be providing a constant moral compass, which will be ignored by those breaking the rules anyway.
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Old Dec 24, 2019, 8:16 am
  #1476  
 
Join Date: Apr 2005
Location: MBS/FNT/LAN
Programs: UA 1K, HH Gold, Mariott Gold
Posts: 9,630
Originally Posted by notquiteaff
I tend to understand that Joe Once A Year Flyer
But were not talking about Joe once a year.

Originally Posted by StarTrek1989
7 years premier 1K, almost million, 250k miles balance
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Old Dec 24, 2019, 8:46 am
  #1477  
Ari
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Join Date: Aug 2005
Location: Chicago
Posts: 11,513
UACompliance probably takes these seemingly drastic actions in large part to deter; they likely know word gets around as to the attitude they take when they catch people. Those who 'unintentionally' violate the rules are punished equally severely; think of them as necessary collateral damage? Not knowing the rules and not breaking the rules are two different things after all . . .
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Old Dec 24, 2019, 9:22 am
  #1478  
 
Join Date: Feb 2005
Location: CLE, DCA, and 30k feet
Programs: Honors LT Diamond; United 1K; Hertz PC
Posts: 4,165
Originally Posted by Ari
Not knowing the rules and not breaking the rules are two different things after all . . .
They are and they aren't though... there's no mens rea test as to if the rules have been violated or not. If you chose to participate in a program and haven't availed yourself of the opportunity to familiarize yourself* with the rules/guidelines, ultimately it is on you if the rules get broken.

If you pass a speed limit sign doing 70 when the sign shows 30 and an officer pulls you over you're guilty of speeding. It doesn't matter if you didn't see the sign or if you saw the sign and ignored it.

I have a bit more sympathy in this case for those who truly "didn't know" (didn't bother to read), but ultimately the rule is broken and UACompliance doesn't have any reasonable way to confirm if the ignorance is feigned or actual. And it's not a hidden rule either.


*yourself, including in this case, anyone you entrust access to your account to, eg. allegedly in the most recent OP's case.
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Old Dec 24, 2019, 10:24 am
  #1479  
Suspended
 
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
The question of whether it is "common sense" or "should have read the fine print" really is not relevant. Bottom line is that one is free to simply check those boxes certifying that one has read & understood and accept various matters without reading them. But, one cannot later argue that because one did not read the material, it somehow does not apply.

This is just a business arrangement. It is governed by a contract.
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Old Dec 24, 2019, 10:36 am
  #1480  
J S
 
Join Date: Apr 2001
Posts: 592
Originally Posted by Mbenz
How did they figure out this was the case I wonder? Was there a lot of activity between accounts?

I typically help manage my wife's, 2 kids and in laws at times accounts, basically because they don't have interest in it and understand all the processes. I sometimes sponsor them with miles and upgrades though not the other way around. Certainly hope this isn't an issue?
I admit to managing my one year old's account. I also manage his dirty diapers. Pretty sure United won't have a problem with my doing either one.
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Old Dec 24, 2019, 10:57 am
  #1481  
 
Join Date: Jun 2014
Programs: UA MM
Posts: 4,126
Originally Posted by J S
I admit to managing my one year old's account. I also manage his dirty diapers. Pretty sure United won't have a problem with my doing either one.
I'm sure they won't mind until you start selling your one-year-old's upgrade instruments online.
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Old Dec 24, 2019, 11:23 am
  #1482  
J S
 
Join Date: Apr 2001
Posts: 592
Originally Posted by JimInOhio
I'm sure they won't mind until you start selling your one-year-old's upgrade instruments online.
I started reading that and thought it was going to be, "I'm sure they won't mind until you start selling your on-year-old's dirty diapers online."

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Old Dec 26, 2019, 5:35 am
  #1483  
Ari
FlyerTalk Evangelist
 
Join Date: Aug 2005
Location: Chicago
Posts: 11,513
Originally Posted by Often1
The question of whether it is "common sense" or "should have read the fine print" really is not relevant. Bottom line is that one is free to simply check those boxes certifying that one has read & understood and accept various matters without reading them. But, one cannot later argue that because one did not read the material, it somehow does not apply.

This is just a business arrangement. It is governed by a contract.
I don't think that fact is up for debate.

I think the question in this thread is, "is it good practice for UA to take the harsh approach they take based on how badly it offends some people?" They are not obligated to stand on their contractual rights. UA can sanction however they want, harsh or not-- that's what the contract says.

That said, I defended UA's harsh approach above and gave my reasoning.
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Old Dec 26, 2019, 8:26 am
  #1484  
 
Join Date: Feb 2015
Programs: united
Posts: 1,636
Originally Posted by Ari
I don't think that fact is up for debate.

I think the question in this thread is, "is it good practice for UA to take the harsh approach they take based on how badly it offends some people?" They are not obligated to stand on their contractual rights. UA can sanction however they want, harsh or not-- that's what the contract says.

That said, I defended UA's harsh approach above and gave my reasoning.
One thing that militates in favor of a harsh approach here is that despite what everyone who gets caught claims, I think most of the people UA is going after know exactly what they are doing.

The thing about situations like this- which arise in the law as well as in business contracts- is that a lot of people assume that just because they claim innocent intent, everyone has to believe them. I can't tell you the number of times someone has said to me "I'll just tell them X if I get caught" and I have to respond with exactly that- you can say anything you want, but that doesn't mean they have to credit your explanation. Indeed, many, many people are actually serving prison sentences where they figured the jury would have to believe their "innocent" explanation for what they did.

Yes, I understand that it is possible for someone to get caught up in this because they didn't read the program rules and just figured they could sell an award they weren't going to use or something. But I don't think that's a reasonable explanation of what most of these folks are doing. Rather, they just figure they won't get caught, the same way a lot of people assume that they won't get caught when they are doing something wrong.
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Old Dec 26, 2019, 8:37 am
  #1485  
 
Join Date: Jun 2014
Programs: UA MM
Posts: 4,126
Originally Posted by dilanesp
One thing that militates in favor of a harsh approach here is that despite what everyone who gets caught claims, I think most of the people UA is going after know exactly what they are doing.

The thing about situations like this- which arise in the law as well as in business contracts- is that a lot of people assume that just because they claim innocent intent, everyone has to believe them. I can't tell you the number of times someone has said to me "I'll just tell them X if I get caught" and I have to respond with exactly that- you can say anything you want, but that doesn't mean they have to credit your explanation. Indeed, many, many people are actually serving prison sentences where they figured the jury would have to believe their "innocent" explanation for what they did.

Yes, I understand that it is possible for someone to get caught up in this because they didn't read the program rules and just figured they could sell an award they weren't going to use or something. But I don't think that's a reasonable explanation of what most of these folks are doing. Rather, they just figure they won't get caught, the same way a lot of people assume that they won't get caught when they are doing something wrong.
I fully agree. It's hard to imagine United is looking for reasons to throw customers out of the MileagePlus program. Instead, I have to think they are looking for true repeat violators of their rules.
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