I’ve come to learn that one of my least favorite things to report on is bad news in the credit card game. But not just bad news in general, but news in the form of American Express and its clawbacks. While sure, often times it seems fair that American Express would do the things they do, I don’t think that any other reputable company takes it to the extremes that American Express does.
What some users were able to do was take advantage of American Express’ airline credit. Basically, some cards give you an airline incidental credit that can’t be used for flights directly. What do you do if you wouldn’t normally be able to use the credit, but otherwise wouldn’t get value from the credit card? You could buy something that would trigger the credit, and then get a refund. You would get the benefit from American Express seeing that it paid out the benefit to you.
American Express has wised up though, and if they see that you have gotten that refund from the airline, they are taking their benefit they paid out back in the form of a bill. If you thought that was bad, the update to this story is that American Express is currently going back at least 2 years.
I get what American Express is doing, and from their point of view it makes sense. What I don’t see is how they are going so far back. I feel just about any other company would chalk it up to a mistake and move on. Instead, American Express is really going after individuals for this sum of money, and I just see it as too much. A year? Fine. Two years? Yeah maybe. But what’s to stop them from looking back 10+ years if they really wanted to? I just feel it’s a little excessive is all, and I’m not even directly impactd by this.
Is American Express over reaching? Or what do you think about the circumstance in general? Let us know down in the comment section below.