topic Re: Perils of MS in Credit Cards

Perils of MS

Anonymous — Wed, 22 Oct 2014 23:31:15 GMT

Well, to no great surprise, Amex started closing Amex Blue Cash cards, including mine. Two somewhat unusual features:

1) No FR, just email saying the card was cancelled

2) Other Amex cards left alone. Many issuers in this situation close all cards

Sampling on flyertalk shows the usual lack of pattern, in some husband/wife pairs, the partner doing less on their card had the card closed whereas the other is open. But the whole shakeout might take a few days, and one person was told (when trying to apply) that the card is being phased out.

As is usual, with the cards closed, all unpaid/unreedeemed rewards go away, and with Amex this is effectively two months of rewards (I should have got last month's on Oct 27). So the next step is to consider suing in small claims for the rewards (which seems to have a high degree of success, as courts choose not to abide by overly restrictive T&Cs)

So is/was it worth it? Yes, even for a few months. But I will give it a rest, and then try one of the next best things (TD / WF)

Re: Perils of MS

gen-specific — Wed, 22 Oct 2014 23:33:52 GMT

???

I have a Blue Cash card that I don't use

Re: Perils of MS

FinStar — Wed, 22 Oct 2014 23:41:21 GMT

Well isn't that something? So, in the absence of tangible bread crumbs on the closure (or discontinuation) would you strongly feel this was MS-related as a whole?

Re: Perils of MS

WillTeasle — Wed, 22 Oct 2014 23:46:03 GMT

@FinStar wrote:
Well isn't that something? So, in the absence of tangible bread crumbs on the closure (or discontinuation) would you strongly feel this was MS-related as a whole?

It's still early, but it's looking like it. My old BC is fine, but I don't do any MS on it. Only time will tell though.

Re: Perils of MS

Anonymous — Wed, 22 Oct 2014 23:48:14 GMT

@FinStar wrote:
Well isn't that something? So, in the absence of tangible bread crumbs on the closure (or discontinuation) would you strongly feel this was MS-related as a whole?

Well, one person called and was told:

Reason for closure:

You repeatedly used the Blue rewards feature of the card for purchases which are not consistent with personal, family, household use. Such purchases are ineligible for rewards under the T&Cs of the card agreement

This language would also be used if they suspected business use of a personal card, and this person had no business, so it indeed was for personal/family/household use (you can never have enough gift cards!).

Note that these purchases aren't forbidden in the T&Cs, just that they don't earn rewards. But it isn't up to us, the issuer gives the rewards.

We'll see how this shakes out. But a good reminder that this isn't risk free!

Re: Perils of MS

FinStar — Thu, 23 Oct 2014 00:00:20 GMT

@Anonymous wrote:
@FinStar wrote:
Well isn't that something? So, in the absence of tangible bread crumbs on the closure (or discontinuation) would you strongly feel this was MS-related as a whole?
Well, one person called and was told:

Reason for closure:

You repeatedly used the Blue rewards feature of the card for purchases which are not consistent with personal, family, household use. Such purchases are ineligible for rewards under the T&Cs of the card agreement

This language would also be used if they suspected business use of a personal card, and this person had no business, so it indeed was for personal/family/household use (you can never have enough gift cards!).

Note that these purchases aren't forbidden in the T&Cs, just that they don't earn rewards. But it isn't up to us, the issuer gives the rewards.

We'll see how this shakes out. But a good reminder that this isn't risk free!

Oh I see. Thank you for the insight longtimlurker. Good to know! Sorry to hear about the closure of your BC what CL did you have?

Re: Perils of MS

Anonymous — Thu, 23 Oct 2014 00:11:12 GMT

@FinStar wrote:
@Anonymous wrote:
@FinStar wrote:
Well isn't that something? So, in the absence of tangible bread crumbs on the closure (or discontinuation) would you strongly feel this was MS-related as a whole?
Well, one person called and was told:

Reason for closure:

You repeatedly used the Blue rewards feature of the card for purchases which are not consistent with personal, family, household use. Such purchases are ineligible for rewards under the T&Cs of the card agreement

This language would also be used if they suspected business use of a personal card, and this person had no business, so it indeed was for personal/family/household use (you can never have enough gift cards!).

Note that these purchases aren't forbidden in the T&Cs, just that they don't earn rewards. But it isn't up to us, the issuer gives the rewards.

We'll see how this shakes out. But a good reminder that this isn't risk free!
Oh I see. Thank you for the insight longtimlurker. Good to know! Sorry to hear about the closure of your BC what CL did you have?

sorry to hear about your closure. I remember you had a high CL on that card. Did you move CLs to that card?

Anyhow, as long as it's worth it, and it didn't affect your other Amex cards, then it's not so bad after all.

Re: Perils of MS

Luscher — Thu, 23 Oct 2014 00:17:57 GMT

Wow that sucks. I guess we can only compare and see if the only cards closed were from MS. It seems weird that if they WERE fazing it out, that they wouldn't just make you PC.

Re: Perils of MS

mongstradamus — Thu, 23 Oct 2014 00:29:39 GMT

the thread was an interesting read, i can kind of see amex pov if they are losing an lot of money where people are putting that much spending in on an card just for sole purpose of MS.

Re: Perils of MS

pizza1 — Thu, 23 Oct 2014 00:41:33 GMT

Well shoot... Sorry to hear! We're you able to keep some of the cli and transfer to other card? Keep us posted!

Re: Perils of MS

taxi818 — Thu, 23 Oct 2014 00:41:40 GMT

@Anonymous wrote:
Well, to no great surprise, Amex started closing Amex Blue Cash cards, including mine. Two somewhat unusual features:

1) No FR, just email saying the card was cancelled
2) Other Amex cards left alone. Many issuers in this situation close all cards

Sampling on flyertalk shows the usual lack of pattern, in some husband/wife pairs, the partner doing less on their card had the card closed whereas the other is open. But the whole shakeout might take a few days, and one person was told (when trying to apply) that the card is being phased out.

As is usual, with the cards closed, all unpaid/unreedeemed rewards go away, and with Amex this is effectively two months of rewards (I should have got last month's on Oct 27). So the next step is to consider suing in small claims for the rewards (which seems to have a high degree of success, as courts choose not to abide by overly restrictive T&Cs)

So is/was it worth it? Yes, even for a few months. But I will give it a rest, and then try one of the next best things (TD / WF)

I hope you are not talking about TD Bank. they are the worst. but for the first 6 months with card. its ok. i was going to close it tomorrow.but i saw i would take a 30 point hit from simulation so i will just sd it.

Re: Perils of MS

Anonymous — Thu, 23 Oct 2014 01:35:21 GMT

@taxi818 wrote:
@Anonymous wrote:
Well, to no great surprise, Amex started closing Amex Blue Cash cards, including mine. Two somewhat unusual features:

1) No FR, just email saying the card was cancelled
2) Other Amex cards left alone. Many issuers in this situation close all cards

Sampling on flyertalk shows the usual lack of pattern, in some husband/wife pairs, the partner doing less on their card had the card closed whereas the other is open. But the whole shakeout might take a few days, and one person was told (when trying to apply) that the card is being phased out.

As is usual, with the cards closed, all unpaid/unreedeemed rewards go away, and with Amex this is effectively two months of rewards (I should have got last month's on Oct 27). So the next step is to consider suing in small claims for the rewards (which seems to have a high degree of success, as courts choose not to abide by overly restrictive T&Cs)

So is/was it worth it? Yes, even for a few months. But I will give it a rest, and then try one of the next best things (TD / WF)
I hope you are not talking about TD Bank. they are the worst. but for the first 6 months with card. its ok. i was going to close it tomorrow.but i saw i would take a 30 point hit from simulation so i will just sd it.

Yes, just for the six months. Some say you can close and repeat after three months.

Re: Perils of MS

weehoo — Thu, 23 Oct 2014 02:24:09 GMT

I havent been cancelled yet. Just cashed out my rewards to be safe though

Re: Perils of MS

Anonymous — Thu, 23 Oct 2014 02:38:55 GMT

I knew better than to app this card, lol.

Re: Perils of MS

hiro905 — Thu, 23 Oct 2014 02:43:36 GMT

I read about this as well . It will be intersting to see what pattern develops over the next few days.

Re: Perils of MS

mongstradamus — Thu, 23 Oct 2014 02:43:54 GMT

@Anonymous wrote:
I knew better than to app this card, lol.

I thik you can still app card and still ms with it , just don't go crazy where you are doing 3 or 4x your CL in one month thats just asking for trouble. Like people are spending up to an million dollars in six months or so , when there income would not support it. Thats my opinion on the shutdowns.

Re: Perils of MS

navajomyst2003 — Thu, 23 Oct 2014 02:51:01 GMT

@Anonymous wrote:
Well, to no great surprise, Amex started closing Amex Blue Cash cards, including mine. Two somewhat unusual features:

1) No FR, just email saying the card was cancelled
2) Other Amex cards left alone. Many issuers in this situation close all cards

Sampling on flyertalk shows the usual lack of pattern, in some husband/wife pairs, the partner doing less on their card had the card closed whereas the other is open. But the whole shakeout might take a few days, and one person was told (when trying to apply) that the card is being phased out.

As is usual, with the cards closed, all unpaid/unreedeemed rewards go away, and with Amex this is effectively two months of rewards (I should have got last month's on Oct 27). So the next step is to consider suing in small claims for the rewards (which seems to have a high degree of success, as courts choose not to abide by overly restrictive T&Cs)

So is/was it worth it? Yes, even for a few months. But I will give it a rest, and then try one of the next best things (TD / WF)

My wife and I are currently running her parents assisted living expense (about 12,000 a month) through her CSP AU card. CSP account is mine. That wouldn't fall under MS would it? The statement is paid from her parents checking that is a pay from account we have set up.

Re: Perils of MS

Anonymous — Thu, 23 Oct 2014 02:51:06 GMT

@mongstradamus wrote:
@Anonymous wrote:
I knew better than to app this card, lol.
I thik you can still app card and still ms with it , just don't go crazy where you are doing 3 or 4x your CL in one month thats just asking for trouble. Like people are spending up to an million dollars in six months or so , when there income would not support it. Thats my opinion on the shutdowns.

What if your income does support it?

Re: Perils of MS

Bman70 — Thu, 23 Oct 2014 02:57:41 GMT

As I recall OP was spending some $20k monthly on gift cards. Definitely enough to be an outlier and raise flags. As for suing for the rewards... If it was against TOS spending in the first place, seems groundless. I would expect Amex would have a good case for suing the consumer for rewards paid though.

Re: Perils of MS

Anonymous — Thu, 23 Oct 2014 03:00:09 GMT

@navajomyst2003 wrote:
@Anonymous wrote:
Well, to no great surprise, Amex started closing Amex Blue Cash cards, including mine. Two somewhat unusual features:

1) No FR, just email saying the card was cancelled
2) Other Amex cards left alone. Many issuers in this situation close all cards

Sampling on flyertalk shows the usual lack of pattern, in some husband/wife pairs, the partner doing less on their card had the card closed whereas the other is open. But the whole shakeout might take a few days, and one person was told (when trying to apply) that the card is being phased out.

As is usual, with the cards closed, all unpaid/unreedeemed rewards go away, and with Amex this is effectively two months of rewards (I should have got last month's on Oct 27). So the next step is to consider suing in small claims for the rewards (which seems to have a high degree of success, as courts choose not to abide by overly restrictive T&Cs)

So is/was it worth it? Yes, even for a few months. But I will give it a rest, and then try one of the next best things (TD / WF)
My wife and I are currently running her parents assisted living expense (about 12,000 a month) through her CSP AU card. CSP account is mine. That wouldn't fall under MS would it? The statement is paid from her parents checking that is a pay from account we have set up.

I think it's more like any purchase and so should be ok. If the amount is high relative to income Chase may have questions, but you have a good explanation.