American Express removing reward points linked to cancelled credit cards
What's the story
American Express (Amex) cardholders in India have been losing their Membership Rewards points after closing individual credit cards. The issue was first reported on November 9, with several customers complaining of huge deductions from their reward balances. One customer, Sumanta Mandal, said 23,88,090 points were clawed back, taking his balance to minus 21,48,040 points.
Company response
Amex blames technical glitch for sudden deductions
In an email to affected customers, Amex blamed a technical glitch for the sudden deduction of points.
The company said that the issue had allowed points linked to canceled cards to remain visible beyond their redemption period.
According to Amex's Membership Rewards terms, customers are required to redeem points associated with a canceled card within 30 days of cancellation or lose them after this period.
Redemption issues
Issue raises questions about point calculations
The problem is particularly concerning for customers who have multiple eligible Amex cards and their points are pooled into a single balance.
This system makes it difficult to identify or select points earned on a particular card when redeeming.
The issue has raised questions about how Amex calculated the deductions, especially for customers who continued earning and redeeming points on their active cards after closing another one.
Policy change
What to do if you've closed an Amex card
In light of the issue, Amex has advised cardholders to redeem eligible rewards before closing an Amex card.
The company also clarified that points displayed in a combined balance may not remain available after cancellation.
Customers who have canceled an Amex card while keeping another should check their Membership Rewards balance and transaction history immediately.
They should also save previous balance statements and any communication from the issuer.
Customer action
Customers should file written complaints or seek clarification
If points have been deducted, customers should file a written complaint or seek clarification from Amex and ask for a card-by-card calculation of the adjustment.
They should keep the complaint reference number and the issuer's response.
The company has also said that no further action is required if your balance is negative, but hasn't clarified how such negative balances will be treated.