Introduction
A couple of weeks ago, I wrote about how Barclays shut down both my wife’s and my account. I had about $400 worth of Arrival+ points left in both of our accounts. Usually, you’ll want to contact the bank directly and ask to get a credit on those points, but I had read calling them won’t get you very far. I then decided to file a CFPB complaint with them for my orphaned points.
Filing a CFPB complaint
Please note that CFPB complaints should be treated very seriously. Don’t go filing a complaint because you have $5 left in your account, but if it’s a sizable amount, then go for it. I’m not going to circles and arrows you my CFPB complaint to help deter frivolous complaints. If you are serious enough to file a CFPB complaint, then you should be serious enough to come up with your own answers.
With that said though, I will say that I basically wrote how I thought Barclays was being deceptive with their business practices in promoting a credit card with rewards and then shutting down my account with no prior notice and not allowing me to redeem my rewards. I then asked to be compensated at a valuation of $.01 per point since that’s what I could have redeemed them for as a statement credit. I’m forgoing the extra 10% travel credit redemption, but I was okay with that. I filed this complaint on Day 1 (I don’t want to list the specific date in case the Cardinals are reading this).
The call from Barclays
I received an email on Day 6 that my complaint had been forwarded to the company. On the next day, Day 7, someone from “the Office of the President” at Barclays called me. It was a quick 5 minute phone call. She told me she can’t do anything about the annual fees, but she would look into getting me my points. In hindsight, I should have pushed harder about the annual fees. The worse thing is them telling me NO again. I never heard back from her again.
Later on in the week, I logged into my account and saw this:
This essentially means they redeemed my points as a statement credit, and they cut me a check for the balance.
I then checked my wife’s account and saw a similar thing. The odd thing was that they actually credited back my wife’s annual fee, but not for me. I’m not going to complain any further. I’m happy with the resolution.
Lessons Learned
If a bank shuts down your credit card and you have rewards points on that credit card and can’t redeem them out, consider filing a CFPB complaint against them to help you get your hard earned rewards money out.
I’ve read that Chase will give you 30 days to transfer out any Ultimate Rewards points. Barlcays clearly does not in my case. I think Citi doesn’t give you a grace period either. AMEX lets you do it if you HUCA enough times.
Barclay actually put a fraud alert on my wife’s card that requires her to send in a front/back photocopy of her social, driver’s license, and original bank statement/utility bill. They want her to send her “identity in an envelope” just to clear a basic fraud alert. I filed a CFPB complaint, but am nervous it’s not enough. I would rather cancel her card than send all this info to them. It’s her 2nd BC Arrival + Card (churn).
1. What additional action would you take any additional action if you were me?
2. Have you heard of this level of fraud alert before?
Background: It happened after we tried buying $2k of One Vanilla’s at CVS. After 3x of this back/forth between BC security / CVS cashier – it prompted the cashier to actually call the number on the back of the card and enter in some code. Have you ever experienced this type of cashier calling prompt at checkout before?
Thanks for any advice you can give!
I would have just sent in the info to be honest. I mean, they should or already know most of that stuff already. Since you’ve gone the CFPB route already, I’m not sure what to tell you at this point. Maybe wait for them to call you.
I have heard of cashiers having to call banks. A lot of ppl did that with the Apple Pay Discover promo at Best Buy – a lot of fraud alerts. I haven’t heard of any bank requesting that type of info though. Maybe they’ve all added a new level of fraud investigation now.
Personally, I was OK (but not 100% comfortable) with sending the info, but wife was not = no go. You’re a married man, I’m sure you understand 🙂
The reason for the CFPB complaint was b/c Barclays would not even let us close her account. I didn’t think that was fair as we legally opened the account so we should legally be able to close the account – especially with a zero balance – regardless of whatever “status” they arbitrarily determine the account to be. Well, we’ll wait and see and hope all goes well.
Thanks for the fast detailed response!
Ah okay, that’s the first I’ve heard of a bank not letting you close an account. Then for sure, you should have filed a CFPB on them.
I had multiple Citi cards shut down a few years back and list about $800+ worth of points. I filled an appeal with citi and a CFPB complaint and got a form feed letter from Citi saying it was standard policy and never heard back from CFPB. is that normal?
I’m not a CFPB expert so don’t know. If this was a few years back, there’s probably nothing you can do now. I haven’t read of any CFPB complaints against Citi lately, so not sure if they do reimburse or not.
I have about $350 worth of reward points on my Chase Business Card, and I just found out last month that they are expired…Filed the complaint with CFPB and 2 days later a lady from the “President’s Office” called, and told me there is nothing she can do…*sigh*.
That’s odd. I thought Chase gives you 30 days to transfer out. Did you procrastinate?
I haven’t use the card for a while…She said those reward points do have expiration day.
if my card has been shut down for over a year, can I still file this? Thanks.
You can Mike, but read Kevin’s comment above.
I don’t understand the reticence to use the regulatory agency established for just such purposes even when the balances involved are small. You aren’t supposed to lay back and try to enjoy it. After all, those who rob banks of $10 face the same penalties as those who rob banks of $10,000, and often much worse penalties than those who rob banks of $100 million. Same rules should apply vice-versa, when banks rob customers. If they have your money and won’t give it back and filing with the CFPB results in action 1 days after the bank is notified, I say things are working better than I’d expect and readers should be advised to do the same. Only by calling regulatory attention to such unseemly practices can we establish a record of the extent of the abuse.
Good point.
Any consensus on what triggered the recent Citi shutdowns?
Not really sure Dave. DoC has a post on it today though.