Pay Late And Lose Your Miles

Let’s say you spend a lot on your co-branded Delta American Express one month and then forget to pay your bill on time.

You’re going to pay a hefty penalty and interest on the unpaid balance and, as of January, you’re going to lose the miles you earned during that month, the Associated Press reports. If you want the miles back, it will cost you $29.

The new American Express policy applies to its co-branded cards with Delta, JetBlue and Hilton and Starwood hotels.

This is simply unfair, a double penalty for a single transgression. If the customer pays the amount owed eventually, the customer should get the miles, eventually and without additional charges. The bank has the money, after all, and the exorbitant fees and interest the customer paid for being late.

I dropped my Delta Amex more than a year ago, annoyed by the high annual fee and the decreasing value of the miles it earned. I switched to a cash rewards card.

I still have a Citi American Airlines rewards card. Citi has told the AP that it won’t revoke miles for late payments — for now. So I’ll keep it — for now.


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