AmEx No Longer Offers Retention Offers and I Assume Other Banks Due to Gov Regulation

Arkhxm on 15/02/2025 - 09:45
Last edited 15/02/2025 - 10:37 by 1 other user

So my Amex Ultimate Qantas card is up for fee renewal soon and I thought I’d have a crack at a retention offer as ozbargainers do. To my surprise I was told they no longer offer it due to government regulations newly introduced.

How unfortunate. Thought I’d let some people know though. What’s your thoughts?

This is what they said via live chat:

I would like to inform you that Under the new regulation by AU government. we are prohibited from providing retention offers.
We really appreciate your card membership and spending on AMEX card, we would love to see you stay.
Had it been possible for me to offer you anything, i would have done that for you, however, we do not have an option to provide any incentive ..
Having said that, you can always look up for the merchant offers that are being added on the account for you so that you can enroll and earn credit.

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Comments

  • Wiadro on 15/02/2025 - 09:53

    yeah i got this response a few times now too

    • Arkhxm on 15/02/2025 - 09:59

      Did you end up keeping your card? I don’t think I’d be able to make use of the $450 travel credit for it to be worth it but I also really like the card

      • Hugh G Rection on 15/02/2025 - 11:11
        +2

        just take a quick weekend trip to sydney, melbourne, etc…

      • Wiadro on 15/02/2025 - 13:29

        yeah, I'm using the credit in April and then cancelling.
        no use to have it tbh

  • Ocker on 15/02/2025 - 09:59
    +1

    Maybe nothing to do with "new regulation by AU government".
    About 18 months ago, after holding an Amex green card for 41 years I rang to say I wanted it cancelled. They simply said "OK it will be cancelled immediately", no effort to ask why or will you stay if………"

    • Arkhxm on 15/02/2025 - 10:08
      -1

      Yeah pretty poor customer service in that case. I haven’t researched when the regulation came into place but I’ve always found with retention offers for any company it depends on timing and who you get. Some reps are too lazy to transfer to retentions or they just don’t care enough.

      • askbargain on 15/02/2025 - 10:10
        -1

        Poor customer service or the law? Pretty sure there are words you can’t mention

        • Arkhxm on 15/02/2025 - 10:13

          What do you man exactly? As I said I’m not sure when the regulations came in place so in Ocker’s case it could just be poor customer service. Normally they’d give a reason and refer to gov regulation if that was the case.

          What do you mean “words you can’t mention”

    • Arkhxm on 15/02/2025 - 10:14

      Found this on the web. I guess Amex took the stance to apply the law to everyone in your case.

      “The changes are a result of recent federal government reforms to the National Consumer Credit Protection Act 2009 (Cth). The new laws only apply to credit contracts created after 1 January 2019, but most banks have also made changes already to the way they deal with existing customers.”

  • WookieMonster on 15/02/2025 - 10:36
    +3

    I am getting a sense of déjà vu.

    Schedule 5 of the Treasury Laws Amendment (Banking Measures No. 1) Act 2018 amended the National Consumer Credit Protection Act 2009, and Section 133BV was one such amendment:

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

    I suspect AMEX has interpreted Section 133BV to mean they cannot offer any incentives to stop you from cancelling your credit card, as a retention offer could be seen as a suggestion to not cancel your credit card. This section actually only applies if you requested AMEX to cancel your credit card, but the cynic in me reckons AMEX has used these reforms as an excuse to stop offering retention offers altogether.

    • Arkhxm on 15/02/2025 - 10:57
      +1

      Yeah I 100% agree. This legislation is in the banks benefit rather than protecting consumers with the “responsible lending” wording

      • grasstown on 17/02/2025 - 09:58

        I also think the rules about merchant fees damaged Amex. Amex has the model of charging the retailer not the consumer, with retailers happy with the loyalty etc typical of Amex customers. (Sometimes retailers passed this bigger surcharge to customers)The politicians at the behest of the banks restricted the way Amex could charge. The offerings from Amex after this change were bad.

  • JIMB0 on 15/02/2025 - 11:16
    +2

    Bloody government and their royal commission.

    • pencilman on 15/02/2025 - 12:09
      +1

      Absolutely agree. Stupid outcomes for savvy consumers

  • surfingedge on 15/02/2025 - 15:47

    Amex in the UK has cut down on retention offers too, so it may also be a corporate thing

  • GuyfromMelbourne on 15/02/2025 - 23:12

    Next time try prompting, I reckon that might work. Instead of saying cancel the credit card. Try saying “I am happy to keep it, if you can offer something to retain.” Not sure 100% if it will work but worth trying.

  • T-man on 15/02/2025 - 23:32
    +2

    The Royal Commission in 2019 was a disaster. It killed most good reward credit cards, made churning impossible, reduced point earn rates per $1 spent to ridiculous levels, and the open banking makes it harder for homeowners to switch lenders, trapping more people in mortgage prison.

    I don’t see any benefits for consumers after that bloody Royal Commission. Bring back the US like banking system for us, please!

  • timhn on 16/02/2025 - 21:23
    +1

    Bring back the US like banking system for us, please!

    Together with deregulation and poor management so we can have crashes like Silicon Valley Bank?

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