Consumer complaint received 2026-03-06 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Problem with rewards from credit card
Company: CAPITAL ONE FINANCIAL CORPORATION
State: NY

Complaint narrative:
Follow-Up Complaint I am submitting this follow-up to my original complaint regarding Capital Ones closure of my accounts and confiscation of approximately XXXX rewards miles that I had accumulated over many years of regular card usage. In my original complaint, I explained that Capital One abruptly closed my accounts, claiming only that it observed activity inconsistent with typical customer account usage, while not alleging fraud, misuse, or any violation of the account terms by me. After the closure, I was told I no longer had access to my rewards. I specifically informed Capital One that, as a New York resident, I am entitled to a 90-day period to redeem my rewards following account closure, but their representatives appeared unaware of that requirement and did not provide a clear solution. Capital One responded on XX/XX/XXXX, stating that it suspended and closed my accounts on XX/XX/XXXX, and that on XX/XX/XXXX it redeemed my XXXX miles and on XX/XX/XXXX mailed me a check for {$2000.00}, which it says cleared on XX/XX/XXXX. According to Capital One, because my account was closed, the only option available to redeem your miles is by receiving a statement credit or check. I am extremely dissatisfied with this response. Capital One converted my rewards into cash at a rate of only XXXX cents per point, which is an unreasonably low valuation and far below the value I could have obtained had I actually been allowed to redeem or use the miles myself. More importantly, I do not believe this conduct complies with New York General Business Law 520-e, which provides that when a credit card account or rewards program is modified, cancelled, closed, or terminated, the cardholder must receive notice, and then has 90 days from the date notice is sent to redeem, exchange, or otherwise use the points accumulated at the time of closure, subject to availability of rewards. The law also defines a prohibited modification broadly to include changes that reduce the value of points or limit the holders ability to use them. That is exactly what happened here. Instead of giving me the required opportunity to redeem, exchange, or otherwise use my miles as permitted under the rewards program, Capital One unilaterally forced a cash-out at a deeply discounted rate. In my view, this deprived me of the 90-day statutory redemption period and effectively reduced the value of my rewards, which is the very harm the New York statute was enacted to prevent. New Yorks law has been in effect since XX/XX/XXXX2023 for covered agreements involving New York cardholders. Capital Ones position that a closed account leaves only the option of a statement credit or check is unacceptable. If the law requires that I be allowed 90 days to redeem or otherwise use my points, then Capital One should have provided a mechanism for me to do so in a meaningful way, rather than forcing me into a low-value redemption that benefited the company and deprived me of the full use of my miles.

Company response to consumer: Closed with explanation