Citi/Capital One VISA - AA PROMO

Discussion in 'Other Credit Card Programs' started by euromannn, May 8, 2012.  |  Print Topic

  1. euromannn
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    euromannn Gold Member

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    I applied one year ago for the Citi & Capital One AA 100,000 promos.
    Now the annual fee is due which I don't wish to pay:
    1. Anyone have luck with Citi and/or Capital One retention department getting the fees waived and keeping the card?
    2. What happens to my Capital One 115,000 points if I cancel the card and can't redeem the points through the VISA card travel purchases?
     
  2. kansaskeith

    kansaskeith Gold Member

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    First to directly answer your question, in all my life I have had one -- repeat one -- conversation with the Citi retention department on their AA MasterCard. About six years ago. After paying the fee for several years, I honestly just wanted to cut my expenses, had other ways of getting AA miles, and was quite prepared to forego another year of the card and save $85. So I called their regular customer service with those instructions. They wouldn't agree to cancel without having me talk to Retention. Retention told me how great a customer I had been, offered to credit back the fee if I renewed (that's my recollection, anyway), so I did, and they did.

    Must have worked from their standpoint. . . because I have renewed voluntarily ever since then.

    I am quite aware that some people have had far more extensive, and lucrative, dealings with the Retention Department. But they will have to tell you. I don't know. . . that's not the way I do business.

    Now, having answered your question best I can, allow me to say I differ with your viewpoint. Others may think it is fine, but I shuddered when I read "now the annual fee is due which I don't wish to pay." Did you not know there was an annual fee for the second year when you signed up? Thee are a lot of things in life "I don't wish to pay." My electric bill comes to mind. And payments to the oil companies for gasoline. And when I had a mortgage, that too. But I agreed to pay when I signed up for those services -- either that, or cancel, or get foreclosed/sued.

    So if those are the terms of your credit card and some of us pay what we say we will. . . , well, you catch my drift.

    And remember how consumers scream bloody murder when the other side -- the credit card companies -- tries to do something the rules don't allow. Doesn't the system work best when both parties follow the rules?

    I realize there is a fine line here. You know others have had wonderful luck with Retention Departments, so you are only trying to get the best deal you can. I understand that. It's just that if I were King, I guess I would ask the card companies not to be so liberal with retention giveaways in order to be fair to those of us who follow our contracts.

    Alas, I am not King. :)

    ---

    P.S. -- On the Capital One miles you haven't redeemed yet, have you checked the cardmember agreement on what would happen to unredeemed miles if the card is inactive? Wouldn't that agreement control?
     
  3. Scottrick
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    Scottrick Gold Member

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    I like kansaskeith's position, but I'm not king either. To get closer to answering your second question, in general, the miles won't be taken away from you as long as it's been at least six months since you opened the account. You might have trouble getting the miles from your final statement. But if something goes wrong and you end up losing your miles, that's tough. You cancelled the card.

    As for Capitol One, points are very different from miles. YOU WILL LOSE YOUR POINTS. So spend them now.
     
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  4. harvson3

    harvson3 Silver Member

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    kansaskeith, that made me think. Thanks.

    I think the contract analogy works differently. When I signed up with Chase for my Sapphire Preferred, they offered me a promotional year. This period lasts one year and is fee-free. In the second year, the fee is $95. I am free to cancel the card if I feel that the benefits aren't worth paying for. (For the record, in a move that would amaze 2011 me, my wife has agreed that we should pay the fee and keep the Sapphire.) You're free to end your Citi AA card if you don't feel, going forward, that the fee justifies the expense.

    The credit card companies could design an agreement that would "claw-back" miles or points if you refuse to continue. Or they could lock you out of future offers if you ended a contract. Yet they don't do so. These contracts would resemble mortgages or utility bills - in those cases you've agreed to either lose some collateral, or you're paying for services already rendered. The credit card companies issue unsecured debt instead. Or they could all follow BofA and (mostly) Amex and not offer promotional fee-free years. Yet they continue to offer the promotions.

    Oh, and the credit card units of the issuers are still very profitable. I don't have the data, but I would wager that the sign-up bonuses and perks we get are only minimally funded by others paying the annual fees, partially funded by merchant fees, and mostly paid for by many, many other users' inability to stay debt-free.

    It's just another fascinating thing about this country and market that so many people don't break contracts (e.g., walk away from underwater mortgages), especially when the alternative - churning the AA card or breaking a mortgage - might yield higher returns.

    In conclusion, upon re-reading my post, I have no point and scottrick answered the question. Good night.
     
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  5. euromannn
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    euromannn Gold Member

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    harvson3,
    I guess a few of the other posters take a very negative attitude toward a simple business proposition. I did not want the high almighty interpretation of a simple business transaction is which I am NOT required to continue using the unless I like the services.

    That's teh freakin agreement. Since, many banks have used retention options I just asked if anyone had ideas to extend not attack my simple business agreement.

    Thanks for you reply.
     
  6. miles and smiles
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    miles and smiles Gold Member

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    Citi is very generous with retention offers. I have had my fees rebated the past two years. If you want details, there is a long thread at FT:
    http://www.flyertalk.com/forum/cred...1-citi-retention-offer-reports-all-cards.html
    Basically you just need to call in to Citi and tell the CSR you are considering cancelling your card because of the annual fee. You should be transferred to their retention department where you will talk with a different CSR who should offer you a variety of retention bonuses. It's up to you to choose or decline the offers.
    Retention offers do vary. Consult the thread at FT if you want to learn more.
     
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  7. euromannn
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    euromannn Gold Member

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    Whata bout Capital One retention? I assume when the VISA card is canceled you lose all reward points?
     
  8. harvson3

    harvson3 Silver Member

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    Your assumption is correct. See scottrick's reply.
     
  9. euromannn
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    euromannn Gold Member

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    Since I must sound the point in the next 10 days....what could I spend it on then change throughout he year?

    115,000 points equal to $1150..........

    Airline ticket that exchangeable for one year?
    Need something that I can change as I'm not sure what to spend on and use immediately.
     

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