Unable to Get AmEx Retention Offer - Apparently New Legislation?

activ8newbs on 01/11/2022 - 22:24

So wife and I each have our own Amex. Wife closed hers 2 months ago via live chat and was offered bonus points if she kept the card.

I went to close my card today. Spoke to retentions team, and they advised as of 01/01/2019 (IIRC), government regulation has meant that they no longer can offer any retention offers that would otherwise prevent or encourage someone to not go ahead with their card cancellation

Anyone have any idea what that's about? Obviously not consistent as wife received a retention offer couple months ago.

Cheers

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Comments

  • nosrad on 01/11/2022 - 22:45

    Never heard of this. Wife got some points from Amex last year when she tried to cancel her card.

    • [Deactivated] on 01/11/2022 - 23:19
      +2

      It’s been illegal for new credit contracts since Jan 2019. Some credit providers have also applied this to existing customers probably to make it less likely they accidentally break the law. Basically as soon as you say you want to cancel, they can suggest an alternative product but they absolutely can not induce you to change your mind, by waiving fees or giving you a bonus etc.

      You might be able to get past it by not indicating directly that you want to cancel.

  • jv on 01/11/2022 - 22:46
    -1

    Anyone have any idea what that's about?

    The Retention Team?

  • prisonmike on 01/11/2022 - 22:46

    It's harder to get the fee refunded as well these days with Amex.

    • jv on 01/11/2022 - 23:12
      -1

      which fee?

      • prisonmike on 02/11/2022 - 07:22

        Annual card fee

        • jv on 02/11/2022 - 09:17
          -1

          I don't pay one for my Amex

    • [Deactivated] on 01/11/2022 - 23:23
      +3

      It’s illegal for them to do so if you say you want to cancel, if your credit contact was since Jan 1 2019. Not sure if it’s been updated since then to be retrospective but haven’t heard as much.

      You might be able to get around it by asking about a product without fees etc, since they’re allowed to suggest alternative products and can probably waive the fee if you haven’t directly said you want to cancel.

      It’s basically part of the reforms to stop people who have a problem with credit from being induced to spend beyond what they can afford. The rest of us are collateral damage.

  • mini2 on 01/11/2022 - 22:46

    Call and try again.

    • daft009 on 02/11/2022 - 17:16

      Yep. HUACA acronym was invented for this reason lol

  • Tech5 on 01/11/2022 - 22:50
    +1

    It depends on how you ask

    "Do you have any retention offers to entice me to stay?" - No

    "I am wondering if you have any bonus points for the next year" - Maybe yes. I've got it every year since 2017.

    • HardQuiz on 01/11/2022 - 23:50

      What yearly bonuses are you getting?

      • Tech5 on 02/11/2022 - 15:17

        3 years ago 60k
        2 years ago 150k
        Last year 100k

        On an amex plat

        • Ash-Say on 02/11/2022 - 19:22

          150k is $750. How they give you that much in bonus just to keep you?

          • Tech5 on 02/11/2022 - 20:09
            +2

            @Ash-Say: Not entirely sure - I was surprised as well. Friend only got 40k that year.

            150k (75k kris flyer) is more like a $2000-$3000 business ticket with Singapore Airlines actually

  • WookieMonster on 01/11/2022 - 23:20
    +7

    Disclaimer: I’m not a lawyer nor someone who has studied law. The text below the line is simply a conclusion based on a quick Google search and a prima facie interpretation of the potentially relevant sections of the applicable Act.

    The person from the AMEX retention team is likely referring to Schedule 5 of the Treasury Laws Amendment (Banking Measures No. 1) Act 2018, which itself amended the National Consumer Credit Protection Act 2009. Amongst other things, this amendment updated some of the credit card regulations in Australia, including:

    • Section 133BU: Forcing credit card issuers into offering a way to cancel a credit card online.

    • Section 133BV: Prohibiting credit card issuers from suggesting to customers they should not cancel a credit card contract. (The requirement extracted from the Act is quoted below.)

    The licensee who is the credit provider under the credit card contract must not suggest that the consumer remain in the credit card contract.

    • Section 133BW: Forcing credit card issuers into facilitating a request to terminate a credit card contract. (The requirement extracted from the Act is quoted below.)

    The licensee who is the credit provider under the credit card contract must take reasonable steps to ensure that the request is given effect to as soon as practicable.

    The reaction from the retention team may be due to how you phrased your request. For example:

    • If I say to AMEX that I would like to cancel the credit card, they are legally obliged to enact this request, because I have spoken my intent for the credit card contract to be terminated. Even if I ask after expressing this request what sort of offers AMEX can offer to change my mind, I don’t think that matters from the point of view of AMEX, as Section 133BW legally forces AMEX to cancel my credit card ASAP. Any enticements (such as bonus points or fee waivers) after me expressing my request would likely also run afoul of Section 133BV, as AMEX cannot entice me to stay in my contract after I have requested its cancellation.

    • If I say to AMEX that I am considering cancelling the credit card, but I am interested in retention offers, that is likely to be legally fine, as I have not actually explicitly asked for the credit card to be cancelled.

    It also boils down to how the AMEX staff have been trained in regards to customers calling about credit card cancellations and retention offers. For example, the AMEX staff you dealt with probably have not been trained on the (likely) important nuance between you saying you are considering cancelling your credit card vs you want (or would like) to cancel your credit card. For all we know, staff could have been trained to believe that a customer calling about cancelling a credit card means they cannot offer any enticements for you to keep the credit card open whatsoever.

    • activ8newbs on 03/11/2022 - 14:27
      +1

      Thanks for this! Unfortunately didn't work. Although I felt very smart quoting section 133b whilst on the phone to them hahaha

  • Mechz on 01/11/2022 - 23:48
    +3

    Use better terminology like 'I am thinking of switching to this other card with no annual fee and bonus points' and they might have something to offer.

  • elgrande on 01/11/2022 - 23:51

    So did you cancel? 🤣

  • iguana on 02/11/2022 - 00:24

    About 20 years ago, straight out of uni and into my first full time paying job I was walking down the street of the CBD when I was stopped by some hot girl who asked me if I wanted an American Express card. I said "why not" and after filling out the form there and then a week or so later I got an AMEX card in the mail with a $6,000 limit. Over the years I didn't really use it that much so reduced the amount to $2,000 and that's the limit where it sat for that last decade.

    Last week I logged into my account an applied for an increase to $10,000. I entered my job income, dividends, expenses etc. and submitted the form. I get an email shortly after requiring evidence of my salary, dividend statements and evidence of my share portfolio. Screw that!

  • Peck on 02/11/2022 - 01:08
    +1

    I can see the logic. If I was having trouble managing my debts and credit facilities, and I asked to cancel a card, then offering an enticement to keep the card could be seen as unscrupulous.

  • Danstar on 02/11/2022 - 09:46

    Every time I've asked to close my amex they've always offered some sort of bonus to stay on board, even though this legislation is been in effect. I guess you might've just got a newbie who's taking the legislation seriously

  • activ8newbs on 03/11/2022 - 14:26

    Thanks guys
    Tried three times
    No luck :(

    Although the 2nd time, they advised that I have a 15k bonus points if I add a 2ndary card holder which I did.

    Thanks a lot guys! You've been really helpful

  • loveyou3000 on 03/02/2024 - 17:09

    Have tried in the last few days to get a bonus through cancelling the card.
    The agent said that he can’t offer an retention bonus, and that system doesn’t prompt them anymore during the card closing process?
    Can anyone confirm? Not sure if should try again?
    I managed to always get several thousand bonus during the closing process last few years for my explorer. Thanks

  • Mzqaqe on 03/02/2024 - 18:50

    https://www.australianfrequentflyer.com.au/community/threads… you need to asked and complain devaluation of points rather than retention bonus

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