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Major Amex clawback related to self referrals

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Moderator

Re: Major Amex clawback related to self referrals


@frogman1 wrote:

I was reading some military guys blog where this was this trick.  Seems Amex waives annual fees for active Military.  So he would get Amex Business Green after Amex Business Green. That card waives the annual fee the first year and only has a 5k sign up bonus which he wouldn't get.  So he would call in as soon as the card was approved and have the card upgraded to Amex Platinum with a 50k upgrade offer.  He said just keep doing it over and over again.  I thought that was wrong because Amex will eventually stop waiving annual fees for active military. 


sad he was taking advantage of a company that waives AF for military as they arent obligated to do so, but doing so in good faith as he/she is serving our country.  Yet he/she takes advantage of an already sweet deal.

Message 11 of 33
Mega Contributor

Re: Major Amex clawback related to self referrals


@coldfusion wrote:

In reading the threads it's pretty clear that the whales are the ones being targeted.  The smart ones already knew to cash out their MR ASAP and be ready to bail on AMEX if their accounts suddenly showed a negative balance.

 

It's part of the game.  If you don't know how to play at that level eventually you're going to get burned.


Right!   Despite some of the angst in the reddit thread, I would guess that everyone who played knew that this was a possibility and determined it was worth the risk.    If they just take the self-referral points, people really aren't worse off, though I guess there is some talk of account closing.

 

Peoples belief as to what is OK varies!   I for one are always surprised by some people here who talk about getting credit scores by signing up for the $1 trials, then closing, then resigning.   To me, that just screams abuse and may lead to the service dying, but clearly others think it's OK because it is allowed.    Same here with self-referrals, till it wasn't!

Message 12 of 33
Senior Contributor

Re: Major Amex clawback related to self referrals

If it had been Cap1 or Barclays allowing self-referrals, I'd have probably tried it. The last two Amex cards I got were BBP and Delta Platinum, though, and I liked them too much for long-term use to have done anything that dubious.
Most spend: CSR, CFU, BBP
Rewards/AAoA ballast: CF, Discover, Costco, ED, Arrival
Perks: Schwab Platinum, IHG49, Hyatt75, Brilliant, Delta Platinum
Potential closures/downgrades: Savor, BCP, Double Cash
Message 13 of 33
Valued Contributor

Re: Major Amex clawback related to self referrals


@wasCB14 wrote:
If it had been Cap1 or Barclays allowing self-referrals, I'd have probably tried it. The last two Amex cards I got were BBP and Delta Platinum, though, and I liked them too much for long-term use to have done anything that dubious.

Amex has too many good cards to mess with them like this.  It is pretty obvious they would eventually get around to fixing it. And they are known to take back points for Obvious things.  Amex is the only card company I would be worried to do this with. 

More cards than I can mention in a signature.
Message 14 of 33
Mega Contributor

Re: Major Amex clawback related to self referrals


@frogman1 wrote:

@wasCB14 wrote:
If it had been Cap1 or Barclays allowing self-referrals, I'd have probably tried it. The last two Amex cards I got were BBP and Delta Platinum, though, and I liked them too much for long-term use to have done anything that dubious.

Amex has too many good cards to mess with them like this.  It is pretty obvious they would eventually get around to fixing it. And they are known to take back points for Obvious things.  Amex is the only card company I would be worried to do this with. 


Lets see what the fallout is.   My experience, pre-RAT I guess, when Amex closed my OBC for MS, I was allowed to open another one just  one month later (and maybe earlier, that was the first time I tried).   I lost a lot of reward dollars because I didn't know about trying to get them accelerated, but in this case it looks like people have only lost some points.

Message 15 of 33
Super Contributor

Re: Major Amex clawback related to self referrals

I guess the teaching moment is, if one does a lot of referral bonus, one gets a 1099 from AMEX for perceived value? That alone reduces some incentive.

With the improved regular earnings on Gold and BBP, that makes me wonder at what these folks were expecting to gain. I am glad to see AMEX taking steps to close loopholes. It should help sustain the program for my spend habits. I have 200k MR from legit SUB and earnings, 200k Delta, and 80k UR as I try to burn points from other programs and get focused on fewer.

The Reddit poster getting a 10k Delta self-referral is amusing. Why even bother?
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 16 of 33
Established Contributor

Re: Major Amex clawback related to self referrals

**bleep**, makes me not want to send referrals to my family. This is part of the tightening from lenders.
Message 17 of 33
Moderator

Re: Major Amex clawback related to self referrals

This isn't tightening from lenders if is lenders being Amex in this case stopping something that has cost them tens of millions of dollars in revenue as sites likes reedit and other blogs this has been around along time and if you have read the comments on them 1000's if not 10k+ are doing this and each self referral cost amex lets say 100 dollars, that adds up pretty quickly.  It was abuse pretty simply.  Obviously it was never meant to be used this way being referrals and people that say sure it was won't keep a straight look on their face for long.

Message 18 of 33
Highlighted
Community Leader
Senior Contributor

Re: Major Amex clawback related to self referrals

A question:

Since AmX is clawing back MR points, what happens if someone already redeemed 50K points and their point balance is now 0? Will they have to pay those points back ($500)? If yes, then this really is going to be a big mess!

GOALS: Garden til APR 2020 and 800 Club


SEP 2019: EX 791, TU 797, EQ 800
JUN 2019: EX 788, TU 794, EQ 779
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $18.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 19 of 33
Valued Contributor

Re: Major Amex clawback related to self referrals


@Blackswizz750 wrote:
**bleep**, makes me not want to send referrals to my family. This is part of the tightening from lenders.

I haven’t seen one data point where they clawed back anything relating to family referrals even a spouse or roommate.

Its a valid referral.

 

This is from people referring themselves for cards. Amex isn’t going to pay out a welcome bonus plus a referral bonus when you decide to signup for a new account. 





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FICO 8 scores 04/2019
EX-778
TU-714
EQ-716
Message 20 of 33
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