Consumer complaint received 2023-08-08
Company: AMERICAN EXPRESS COMPANY
State: NY
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Problem with rewards from credit card

Complaint:
On XX/XX/XXXX American Express cancelled my account without warning. With the cancellation of my account they took over all my points XXXX which is equivalent to {$690.00} which I was saving to pay through my outstanding balance. Per NY State Law I am entitled to my points which I have notified the company and they stated that they would investigate and get back to me within 10 days, this request was provided on XX/XX/XXXX. After several times trying to reach AMEX customer service they said due to cancellation of my account I am not entitled to any of my reward points. 

Per NY State Law : New York law enacted at the end of last year requires reward programs associated with credit cards to provide cardholders advance notice of changes to credit card accounts and the rewards programs associated with those accounts as soon as possible and within a minimum of 45 days before the change. In addition, cardholders must be given a 90-day grace period from the date the notice is sent to redeem any points associated with a cards rewards program. The new law also makes it unlawful for any agreement between a card issuer and cardholder, or any related reward program, to allow for the expiration, forfeiture or cancellation of reward points associated with a credit card before the end of the 90-day grace period. It also deems void as contrary to public policy any agreement that attempts to waive, limit or disclaim the rights conferred by the new law. 

XXXX XXXX XXXX  signed Senate Bill 133B/Assembly Bill 5698B into law XXXX XXXX, XXXX. The legislation, which amends the states general business law to add new Section 520-e, takes effect one year after enactment and applies to all credit card agreements entered into, renewed, modified or amended on or after that date. 

Given its broad definition of the term points, the new law arguably applies not only to credit cards but also to the reward programs associated with those credit cards, which can be governed by separate agreements. New Section 520-e defines credit card points or points as denominated units that can be accumulated in an account in connection with a credit card reward, loyalty, or other incentive program or for certain travel-related rewards as miles, which are redeemable, fungible, or otherwise exchangeable, in whole or in part, for rewards. The definition is not limited to points that are earned by spending money on a credit card. Instead, it includes not only other incentive program [ XXXX ] but also more specifically travel-related rewards as miles. For some credit card rewards programs, the member may be governed by two different agreementsone for the credit card and one for the overarching reward programand the rewards programs allow members to accumulate points not only for purchases on the card but also for actions taken in connection with the linked reward program ( such as hotel stays or flying with an airline ). The broad definition of points in the new law arguably encompasses both the credit card and the related loyalty program points.

Company response to consumer: Closed with explanation