New York City has enacted new regulations on credit cards that will reward shoppers with up to $500 for spending money in the Big Apple. The rules will allow New Yorkers to avoid fees and earn rewards at special retailers, but also bring a set of consumer protections seldom seen elsewhere.
New Yorkers have new credit card rewards consumer protections. The “chase ink cash cell phone protection” is a great way to earn cash back for your purchases and protect your phone.
After passing this summer, the governor approved a new credit card rewards consumer protection legislation. Customers who cancel a card – or have a card cancelled on them by the issuer for lack of usage – will be able to keep their points starting one year from today.
What Does This Bill Do?
It prevents bank credit card points from expiring (most bank points do not now expire) and requires banks to offer clients 90 days to spend their credit card rewards points if the account is cancelled by the consumer or the bank.
For other banks, this isn’t a problem at all. If an American Express Membership Rewards card is closed but you have another Membership Rewards card, you will still have access to all of your points. However, if you don’t, this bill will come in handy.
If you still have a non-Membership Rewards Amex, the issuer will offer you 30 days to utilize any unspent points, and if you don’t, you won’t get a grace period at all. Citibank’s grace period is also presently just 60 days. This legislation will oblige the bank to give New York consumers 90 days in both cases.
This does not apply to cases when an issuer confiscates points based on the claim that they were the victim of fraud or other program rules breaches. In this case, a bank could still deduct points without giving customers the opportunity to use them.
This is especially handy for customers who wish to cancel a credit card or who have had a card cancelled on them due to inactivity.
The relevant wording is as follows:
(2) establish a 90-day grace period (beginning on the day such notice is sent) for the use of accumulated credit card points, except in the case of fraud or misuse of the credit card or related awards program by the credit card holder, and require notice to credit card holders within fifteen days of the cancellation, closure, termination, or modification of a credit card account.
(3) Contracts that allow for the expiry of credit card points are prohibited;
Why Is There A Problem: When a bank card is cancelled, your points have nowhere to go.
If you cancel your co-brand credit card and have an American AAdvantage or United MileagePlus account, you will still have miles in your American or United account. Cancelling a bank rewards card, on the other hand, is the same as canceling the account that carries the points. Your points will be deducted.
In most cases, if you have more than one bank card, you may combine all of your points into a single account (American Express does this automatically). As a result, losing your points is only a problem if your previous bank account is cancelled.
You may be offered a grace period to utilize your points depending on the issuer. Citibank, for example, offers a 60-day grace period.
If your bank shuts your account, you may not be able to do anything with your points at first. In most circumstances, as long as no allegations of fraud have been made, you’ll be permitted to either access the account temporarily for redemption or get reimbursement for your accrued sum. The bank, on the other hand, is in command. And you have to work hard for anything you receive.
All “credit card agreements entered into, extended, updated, or altered after” December 10, 2022 are affected.
For One Reader, It’s A Huge Win
This bill in New York was the result of a quest by Wolfgang Armbruster, a reader of this blog.
Gloria and Wolfgang Armbruster of Bedford brought this problem to Senator Mayer’s attention after they lost over $50,000 in rewards that they had been saving when their credit card provider terminated their account without warning.
“It’s about time customers were safeguarded against unfairly stolen rebate awards from unscrupulous banks and credit card firms,” stated Wolfgang Armbruster. In our instance, after a lifetime of using Citibank credit cards, my wife and I had amassed over 1 million Citibank thank you reward points. Citibank took all of our points without notice in the middle of the night, asserting their contractual power to grab points at any moment and for no reason at all.”
It’d be great if banks did this for everyone.
If you don’t live in New York, you won’t be able to take advantage of the legislation’s features. However, it would be ideal if banks followed this policy for everyone.
It doesn’t provide anybody a legal footing if they’re accused of abusing the program; it just extends the window in which individuals may spend their accrued points if they no longer have the card (whether by their own choosing or the bank’s).
I’m not sure I’d have advocated for the law – it seems like a low-priority piece of legislation, shielding the well-heeled credit card rewards members from a recognized danger (for those who’ve done their study) – and I’m not convinced it should be unlawful for points to expire. Of course, according to Supreme Court precedent interpreting the Airline Deregulation Act, New York would not be allowed to pass a comparable bill for airlines. However, what about those hotel programs…
More From the Wing’s Perspective
Watch This Video-
Instant credit approval stores are popping up all over New York City. The new protections give consumers the ability to dispute charges, get a refund, or even get their money back without having to wait for a card issuer. Reference: instant credit approval stores.
Frequently Asked Questions
Are credit card consumers being protected?
A: Sony has a refund policy in place for their PlayStation store, which allows customers to request a full-refund if they are not satisfied with the product. They also have an automatic 14 day return window on all digital products.
What consumer rights does the credit card provide?
A: Credit cards usually provide the holder with legal rights to repair, replace or refund items that were defective when purchased.
Is cash discount legal in New York?
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