In December last year American Airlines began shutting down frequent flyer loyalty accounts due to credit card rewards abuse. Despite the fact that these American Airlines accounts were shut down, the actual Citi cards continued to work and not accrue any miles. Citi is now sending letters out stating that these cards will be closed within 30 days.
It does strike me as a bit odd that there isn’t any sort of apology from Citi or offer to convert these into other credit cards, but that is generally prohibited in the co-branded credit card relationship.
Two of mine were shutdown but I was able to convert the last to a Costco card.
I have a 10 year old personal AA card, am shutdown by AA, got this letter from Citi yesterday, called in today and asked to product change to DC and they were able to do the change. The card now shows as a DC online too. I don’t know if that will stop the 30 closure or not but for the sake of trying keeping my AoA up I think it was worth a try.
so they say cash like transactions should not earn points/miles. well, put your money where your mouth is. stop issuing miles/points for such transactions and stop the abuse. you already got lvl3 data to do so. and if you can’t: zip up your pants and stop being a d*ck.
My DP: I converted my AA card to DC half a year ago. Yesterday, my DC card was canceled. The letter says the reason is “inactivity”. I don’t know if it is possible to reinstate the card…
Has your DC card actually been “inactive” since the conversion?
“… that [PCing to another card] is generally prohibited in the co-branded credit card relationship.”
This just isn’t true for Citi, and you should change this statement.
I think William was saying that it’s probably prohibited to proactively offer to PC to another card. If I were AA, I wouldn’t want Citi going out of their way to tell customers that their AA card could be changed to a DC.
This
I got the letter, and I proactively called Citi and asked them to close the card today, so there would be no note on my credit file of them causing a force closing by issuer, which is much more negative than a requested closing by card owner.
Also they offered to allow me to transfer credit from this card I was closing to an existing Citi thankyou card, thereby increasing my credit line, with no credit pull required.
Doubt this would be listed as a forced closure.
Accounts closed by issuer (in the comments) – have little impact unless it really impacted your Avg. Acct. Age (oldest card), debt utilization, or you have a really young/thin credit file.
It’s only has a major FICO hit when it’s “closed by issuer” and flagged with a negative e-OSCAR code AND derog comment (i.e. closed for non-payment forebearance, repayment plan, etc). Things like your High Credit exceeding your actual CL . Otherwise You might take a small hit if you lose 5% of overall available CL.
But honestly anyone that got shut down for abusing the grAAvy train – is/was a Churnner that was lol/24
It won’t really affect your AAoA unless they are using the much newer FICO scoring models and literally no lenders are using those. It won’t really affect that until it falls off the report in 7/10 years.
Of course it would. IIRC the notation is typically “closed by grantor,” which is accurate.
Except that when these types of closures have happened in the past that isn’t how they have been reported.
I guess I’m not following. To my knowledge, this kind of shutdown (FFP first, then CC) has never happened. What exactly are you referring to?
AA sure puts the “dic” in vindictive.
I’m been changing mine to either a double cash or a citi+ rewards… I think they sent me a letter about the last one… not sure if I’ll get to change it or they’ll still shut it down.
Citi product conversions take 51 days to complete. Will they still close cards mid-conversion?
Shity is always shity. There is no citi in the city of shiti.
it actually rhymes
PREACH!!
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