Getting annual fee back when cancellig credit card?

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knightrider
Posts: 238
Joined: Fri Jun 06, 2014 11:20 am

Getting annual fee back when cancellig credit card?

Post by knightrider » Sun May 06, 2018 1:35 pm

I do a lot of credit card churning. If I cancel a card after just a few months I often do not get the annual fee refunded. By law aren't they required to refund me at least a pro-rated amount of the annual fee?

For example, if I paid $120 annual fee and cancel after 3 months, they should refund me $90.

This sounds like a class action lawsuit since I often never get this refunded. Perhaps I need to cancel my card by sending a letter instead of calling?

SlowMovingInvestor
Posts: 617
Joined: Sun Sep 11, 2016 11:27 am

Re: Getting annual fee back when cancellig credit card?

Post by SlowMovingInvestor » Sun May 06, 2018 1:37 pm

knightrider wrote:
Sun May 06, 2018 1:35 pm
I do a lot of credit card churning. If I cancel a card after just a few months I often do not get the annual fee refunded. By law aren't they required to refund me at least a pro-rated amount of the annual fee?
No, they are not.

Jags4186
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Joined: Wed Jun 18, 2014 7:12 pm

Re: Getting annual fee back when cancellig credit card?

Post by Jags4186 » Sun May 06, 2018 1:41 pm

You should look at the T&C of the card you signed up for. Not all companies prorate.

knightrider
Posts: 238
Joined: Fri Jun 06, 2014 11:20 am

Re: Getting annual fee back when cancellig credit card?

Post by knightrider » Sun May 06, 2018 1:44 pm

Jags4186 wrote:
Sun May 06, 2018 1:41 pm
You should look at the T&C of the card you signed up for. Not all companies prorate.
I understand it may be in the T&C. My point is they should all do it because it's the right thing to do. To me it's like stealing. What right do they have to keep my annual fee if I am no longer a member?

SlowMovingInvestor
Posts: 617
Joined: Sun Sep 11, 2016 11:27 am

Re: Getting annual fee back when cancellig credit card?

Post by SlowMovingInvestor » Sun May 06, 2018 1:54 pm

knightrider wrote:
Sun May 06, 2018 1:44 pm
Jags4186 wrote:
Sun May 06, 2018 1:41 pm
You should look at the T&C of the card you signed up for. Not all companies prorate.
I understand it may be in the T&C. My point is they should all do it because it's the right thing to do. To me it's like stealing. What right do they have to keep my annual fee if I am no longer a member?
Not to be unduly sarcastic but in that case, wouldn't it be 'right' for them to take back the points you obtained when you churned a credit card ?

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whodidntante
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Re: Getting annual fee back when cancellig credit card?

Post by whodidntante » Sun May 06, 2018 1:58 pm

Some issuers will refund the fee if cancelled within 30 days of incurring the fee. Some issuers will wave it if you call and ask, or give you a promo of similar value to the annual fee. Some issuers allow you to product change to a no annual fee version of the card, for some of their products. Some issuers expect you to pay the fee and will not waver. Check doctor of credit, or provide details on who has expectorated in your Cheerios in the hopes that someone here will know.

TravelGeek
Posts: 1920
Joined: Sat Oct 25, 2014 3:23 pm

Re: Getting annual fee back when cancellig credit card?

Post by TravelGeek » Sun May 06, 2018 2:02 pm

knightrider wrote:
Sun May 06, 2018 1:44 pm
I understand it may be in the T&C. My point is they should all do it because it's the right thing to do. To me it's like stealing. What right do they have to keep my annual fee if I am no longer a member?
You agree to the T&C. It’s like signing a one year lease and prepaying for the year... can you break the lease and get your money back?

Also, since you do it for the points, I have little sympathy unless you offer to return prorated signup bonuses when you cancel. Because, you know, not doing that is like stealing :twisted:
Last edited by TravelGeek on Sun May 06, 2018 2:05 pm, edited 1 time in total.

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Doom&Gloom
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Re: Getting annual fee back when cancellig credit card?

Post by Doom&Gloom » Sun May 06, 2018 2:04 pm

If you are playing a game without knowing the rules, you are playing with less of an advantage than you calculated.

folkher0
Posts: 47
Joined: Fri Dec 09, 2016 2:48 pm

Re: Getting annual fee back when cancellig credit card?

Post by folkher0 » Sun May 06, 2018 3:21 pm

I think the annual fee is applied to discourage people from canceling cards immediately after receiving a bonus. Bonuses only exist to entice customers to sign up for cards that provide companies revenue through fees.

No fees, no bonus I don't think you can expect to have it both ways.

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