Can a portal claw back miles, if you use them...

[Benjamin]

Always been curious about this:

1. I make a large purchase, say for an appliance at Home Depot.
2. Clean up on miles at 10x or something.
3. Let the miles post.
4. Use them.
5. Return the purchase.

Would your mileage account go into the red? Or would they try and follow up with a bill for the flight cost?

Morally, there are some obvious issues. But if you did this on accident after topping off an account, what could happen?

 

[smittytabb]

Always been curious about this:

1. I make a large purchase, say for an appliance at Home Depot.
2. Clean up on miles at 10x or something.
3. Let the miles post.
4. Use them.
5. Return the purchase.

Would your mileage account go into the red? Or would they try and follow up with a bill for the flight cost?

Morally, there are some obvious issues. But if you did this on accident after topping off an account, what could happen?

If you return a purchase, you will likely get a clawback of miles. I use the AA portal a ton and if I return for example clothes that don't fit, they always clawback. I have never had so few miles in my account that I could answer this, but as aggressive as Cartera is at clawbacks I would not doubt they would wait for miles to be deposited to delete them from your account. I cannot imagine being billed for the flight cost. I could imagine you having other actions with AA perhaps.

 

[Renee]

Like the previous poster, I frequently shop online for clothes and so returns are a frequent occurrence. They claw them back every time. You'll go in the red and will have to dig yourself out before you show a positive balance.

I've never gone in the red with a mileage account but it happens to me all the time (accidentally) with Victoria's Secret rewards, because the reward cards are issued automatically once you reach x number of points. So if I return something later, it causes me to have a negative balance, and then my next purchase(s) eventually dig me out of the red.

 

[Benjamin]

Having to dig out, meaning your account would show as a negative? Could be the case. I was thinking more in the sense of building large balance, using the currency, then not dealing with that account anymore. Obviously, a "what if" sort of scenario. Musings if nothing else.

 

[haserfauld]

Having to dig out, meaning your account would show as a negative? Could be the case. I was thinking more in the sense of building large balance, using the currency, then not dealing with that account anymore. Obviously, a "what if" sort of scenario. Musings if nothing else.

Just a tamer version of this:

https://www.fbi.gov/seattle/press-releases/2012/brothers-who-defrauded-nordstrom-with-online-reward-scheme-plead-guilty-to-wire-fraud

Morally and ethically wrong and, while it "worked" years ago, a lot of companies now track/protect against it through various LP means.

Would it work once? Probably. I enjoy mai tais on the beach much less with a dirty conscience.

 

[Benjamin]

Morally and ethically wrong

I would tend to agree. Pretty irate towards Citi right now regarding pay-out for CitiGold promo. These sorts of situations make it less morally and ethically wrong, my temper tells me.