Get App
Download App Scanner
Scan to Download
Advertisement

Lakhs Of Points Gone Overnight: Amex Cardholders Allege Retroactive Rewards Clawback

Amex India has removed points linked to cancelled cards, citing a technical issue. Cardholders question the clawback of rewards held in pooled accounts.

Lakhs Of Points Gone Overnight: Amex Cardholders Allege Retroactive Rewards Clawback
Source: Unsplash
  • American Express India removed Membership Rewards points linked to cancelled cards due to a technical issue
  • Points linked to cancelled cards must be redeemed within 30 days or they are forfeited as per Amex terms
  • Customers complained points were pooled across cards, making it hard to identify or redeem points per card

After multiple confusions, American Express India has now informed cardholders that it has removed Membership Rewards points linked to previously cancelled cards. In an email to affected customers, they cited a technical issue that had allowed ineligible points to remain visible in customer accounts beyond the permitted redemption period. However, the adjustment has triggered multiple complaints from customers who say their rewards were pooled across multiple cards, leaving them with no clear way to redeem, or even identify, points associated with an individual card before its closure.

Amex has said that points linked to a cancelled card must be redeemed within 30 days of cancellation, failing which they are forfeited under its Membership Rewards terms. The company followed up by saying a technical issue had allowed these points to continue reflecting in accounts beyond the 30-day period. It also said that the issue had been resolved and the balances updated in accordance with the applicable terms.

Account screenshots shared by cardholders show adjustments of 311,990 points, 53,528 points and 75,715 points on November 9. One cardholder, Sumanta Mandal, claimed on X that 23,88,090 points had been removed from his account, leaving it with a negative balance of 21,48,040 points. Another customer, Roshan Agarwal, said the points removed from his account were worth around Rs 4.5 lakh. These individual claims have not been independently verified by NDTV Profit.

Clawback being questioned

The concerns centre around how points are tracked and redeemed when customers hold multiple American Express cards.

Amex's Membership Rewards terms define linked basic card accounts held by the same customer as accounts where spending is combined and accumulated under one Membership Rewards Program account. Customers argue that they saw a common points balance and could not specifically select points earned on a particular card for redemption.

This also raised questions about how Amex calculated the points attributable to each cancelled card, particularly where customers had continued making redemptions from the pooled balance after closing individual cards. Cardholders are seeking transaction-level calculations showing points earned, redeemed and subsequently reversed against each card.

Amex's email, however, does not provide this reconciliation or explain how previous redemptions were allocated.

Additionally, from Nov 15, the company says points held by customers with two or more basic cards will be maintained separately for each card, rather than in an overall account-level balance. Existing points will then be distributed based on the individual balances associated with each card.

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.

Newsletters

Update Email
to get newsletters straight to your inbox
⚠️ Add your Email ID to receive Newsletters
Note: You will be signed up automatically after adding email

News for You

Set as Trusted Source
on Google Search
Listen to the latest songs, only on JioSaavn.com