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"Credit card customer risk losing their air miles"

By admin | April 4th, 2009 | Cash Back & Rewards

Rewards based credit cards, such as air miles credit cards, have become increasingly popular over recent years, and many people that use their credit cards regularly and repay their balance in full each month decide to take out an air miles credit card so that they can enjoy cheaper travel, making these cards effective for those that like to travel regularly.

The card works by rewarding consumers with air miles for each pound spent on the card on purchases, and the number of air miles earned per pound spent can vary based on the provider, any special introductory periods, and the credit card taken.

However, there is bad news for millions of consumers that hold air miles credit cards, as they have recently been told that they risk losing all of the air miles that they have collected through spending on their cards. These cardholders have been told that if they fail to collect more air miles in the next six months they could end up losing their collected air miles altogether. Around 1.7 million cardholders have been contacted by the UK’s longest running loyalty scheme, Air Miles, and have been informed of the risk of losing their existing air miles.

One industry official said that the move has made many air miles credit card holders feeling angry and ripped off. He said that it was like a bank closing a customer’s savings account and keeping the money simply because the customer hadn’t put any money into the account for a certain period of time.

He stated: “That’s a bit like having a bank account where you’re told, ‘Ah, well, you haven’t put any money in it for a couple of years so we’ve closed it down and kept your money.’”

However, Air Miles has said that most people won’t be affected because they collect air miles regularly anyway, and those that haven’t been collecting have responded positively by starting to collect their air miles again.

Tags: air miles, credit card rewards

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