Question
Just wondering what credit card companies that allow churning would do once they figure out the loopholes and the churning. Would they withdraw the miles and if there were no miles send us a bill for the cost of the miles, or put a -ve note in our credit history?
Answer
I really don't think credit card companies are a) sleeping b) clueless or c) opposed to customers having multiple accounts.
Answer
I really don't think credit card companies are a) sleeping b) clueless or c) opposed to customers having multiple accounts.
Well then why do select companies like AMEX and US Bank not allow churning (IIRC a FT poster once mentioned that US Bank had a loophole, fixed it and charged for the cost of the miles). Also recently Chase started the crackdown on multiple UA cards.
Answer
Well then why do select companies like AMEX and US Bank not allow churning (IIRC a FT poster once mentioned that US Bank had a loophole, fixed it and charged for the cost of the miles). Also recently Chase started the crackdown on multiple UA cards.
Because they're not sleeping. They allow it when it suits them, stop it when it doesn't.
Answer
Previous discussion here...
http://flyertalk.com/forum/showthread.php?t=580355
Many credit card topics are located in MilesBuzz, and even after the buzz goes off the thread Flyertalk does not move them to the appropriate section which would make them easier to find by searching.
One theory is that churning inflates the number of "active" accounts and reduces the percentage of accounts that appear past due. To my amateur mind this is less important than the percentage of receivables past due.
Answer
They can shut the spigot off anytime they want. Get it while it's good...