December 6,2006
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RIP, Now Let's Have Those Rewards
If you have worked hard to save up your credit card rewards points, you may feel secure in thinking that they are yours, and cannot be taken again. That, unfortunately, is not true. There is at least one way to get your points revoked – in most card companies' cases, that way is dying.
Many a grieving widow(er) has gone to review their credit card account only to find that there account has been canceled, and their accumulated rewards revoked. All major cards except Discover have policies of canceling rewards upon the death of the primary account holder – Discover is willing to write a check for the value of the rewards to the next of kin. Several high-profile stories of bereaved spouses being robbed of their fairly earned rewards has slackened many of these policies, but what's to stop card companies from doing this to anyone?
Sadly, not much. Card companies are free to change the terms and conditions of their rewards programs at any time, as per law. As the credit card rewards industry is insanely competitive, it wouldn't make much sense for a company to randomly discontinue its rewards program – but there isn't anything to stop that from happening.