[AMEX Updates Card Closure Language For New York Card Members] New York’s Credit Card Points Protection Law Now In Effect, Will It Be A Game-Changer Or Nothingburger?

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Update: AMEX now notes when closing a card that having a New York billing address on any card that shares that same Membership Rewards account means you can continue to redeem points for 90 days after card closure:

Originally posted on 12/10/23:

New York’s credit card points protection law goes into effect today.

You can read the details of Section 520-E here.

In short, banks will have to notify cardholders when a card’s rewards program is being devalued or closed, at least 45 days ahead of the change. From the day of the notice, consumers will have a 90 day grace period to redeem points under the original program terms.

If you close your account or a bank closes your account, you will have 90 days to redeem your points, which is more generous than most banks currently provide.

However, banks are allowed to close your account and remove points when there is fraud or misuse. That’s a huge loophole for banks, as they can claim misuse whenever an account is closed.

Currently, banks don’t need to explain what that misuse is, but perhaps under this law that will have to be disclosed to the state?

It’s worth noting that the law states that this applies to any “denominated units that can be accumulated in an account in connection with a credit card reward, loyalty, or other incentive program, often referred to as points or for certain travel-related rewards as miles, which are redeemable, fungible, or otherwise exchangeable, in whole or in part, for rewards.”

Does that mean it applies to miles with airlines and hotels in addition to banks? Can NY even regulate airline programs like that?

The law doesn’t specify what penalties or recourse will apply to companies that violate the new law.

Will banks change the rules just for New Yorkers, or will they make changes across the board?

There appear to be more questions than answers, so we’ll have to wait and see how banks or even airlines react to this new law, but New Yorkers can file complaints to the state’s consumer protection department here. If you do file a complaint, let us know how the state responds!

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21 Comments On "[AMEX Updates Card Closure Language For New York Card Members] New York’s Credit Card Points Protection Law Now In Effect, Will It Be A Game-Changer Or Nothingburger?"

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Like all NY stupid policies this will end up screwing NYers as the only way companies can satisfy the rules are by just not playing. Examples:

1) Cancel for Any Reason Insurance: invalid in NY
2) Multiple security deposits on a car lease to lower the interest rate: invalid in NY

The list goes on


Or down the road they will just tax it


Lack of MSDs in NY is such a huge loss and few people even realize it


First people may need to know what MSD is?


Cancel for any reason on Travel Insured in NY is invalid?


Anyone know if I book an award flight on AA and then cancel, will it extend my miles, or will they claw back?


Why are you asking that here? Do you not have access to the forums?


The forums can sometimes seem daunting for someone who just has a one off question, and doesn’t have the time to learn the platform.

Former Litvak

Yes, this method does work texting your mileage balance. I recently had a need to extend my miles balance due to it expiring, so I booked the cheapest mileage of our flight I found on AA, canceled it a few hours later , got a full refund and a full years extension on my mild balance


You can open bask bank account for aa miles and put in a dollar and will add points to your mileage account


Why don’t they protect the dollar from getting devalued…


what is nothing burger?


Beyond meat!


Capital one recently closed an account and all points were lost. Can anything be done? Will this new law be retroactive ?


The bill says effective December 10, 2023.


I think this will end up in class action court some years down the road for the definition of misuse

I changed the address on one of my sapphire cards to a New York address last night and transferred all my points to that card.


So if you live in NY you can maybe save credit card points if they were illegally seized but for that right you have to pay 10% more in income tax and bridge tolls every 5 minutes.


Owm platinum w points
Same log in for a biz platinum
If close personal, Amex Said since member has biz Plat w same MR number, points on personal stay on Mr / biz open account

Is this accurate ?
Better use points asap?
Buy tickets ?
Move points to airline account?


2 does buying a biz class on elal with MR biz points eligible for 35 % back ?


MR points goes by MR account not by each card, so yes, you will NOT loose your points


What value will each point be given? Will it be based on the cashback value?