Amex credit card points clawback: Why customers are losing Membership Rewards points and what they should do next
American Express India cardholders have reported losing large amounts of Membership Rewards points after closing individual credit cards, even while keeping other Amex cards active.
The sudden adjustment has raised concerns about how customers can track and redeem their accumulated rewards, particularly when points from multiple cards are combined into a single account balance.
The issue came to light on 9 November, when cardholders reported substantial deductions from their reward balances.
One cardholder, Sumanta Mandal, claimed on X that 23,88,090 points were clawed back, taking his balance to minus 21,48,040 points. Other customers also reported deductions, although individual claims have not been independently verified.
In an email to affected customers, Amex attributed the adjustment to a technical issue that had allowed points linked to cancelled cards to remain visible beyond the permitted redemption period.
Amex says its Membership Rewards terms require customers to redeem points associated with a cancelled card within 30 days of cancellation. Any unredeemed points are forfeited after this period.
In its email, the company said, “Due to a technical issue, your unredeemed Membership Rewards points associated with your cancelled Card continued to reflect in your account beyond the 30-day period, despite no longer being eligible for redemption.”
It added that the issue had been resolved and that the balance had been updated in accordance with the applicable terms and conditions.
The main concern is that customers with multiple eligible Amex cards had their Membership Rewards points pooled into a single balance. Consequently, they argue that they could not independently identify or select the points earned on a particular card when redeeming.
This has raised questions about how Amex calculated the deductions, particularly for customers who continued to earn and redeem points on their active cards after closing another card.
Mandal on X said that “Like many of us, I hold multiple Amex cards with points pooled into one central MR account. I closed some older cards a while back. Historically, the 30-day point forfeiture rule ONLY applied to full account closures (if you close all your cards).”
According to him, the 30-day points forfeiture rule was historically understood to apply when a customer closed all their Amex cards and not when they cancelled individual cards while retaining others.
However, he alleged that Amex had now retrospectively reviewed customer accounts and deducted points earned on individually cancelled cards that had not been redeemed within 30 days of cancellation. He further claimed that customers received no prior email, SMS or other warning about the deductions.
The issue is particularly significant for customers whose reward balances have turned negative following the adjustment. Amex's email shared by another X user says no further action is required but does not explain how such negative balances will be treated.
Customers who have cancelled an Amex card while retaining another should immediately check their Membership Rewards balance and transaction history. They should also download or save earlier balance statements and any communication received from the issuer.
If points have been deducted, customers should raise a written complaint or seek clarification from Amex and request a card-by-card calculation of the adjustment, including the treatment of earlier redemptions. They should retain the complaint reference number and the issuer's response.
Going forward, cardholders should redeem eligible rewards before closing an Amex card rather than assuming that points displayed in a combined balance will remain available after cancellation, said the company.
Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.
Get Latest real-time updates
Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
HomeMoneyPersonal FinanceAmex credit card points clawback: Why customers are losing Membership Rewards points and what they should do next
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.