There are lots of credit cards with annual fees that are worth holding onto, thanks to the benefits and return on spending that they offer. However, sometimes the annual fee on a card might be billed, and you decide that the card is no longer worth it for you.
Continue reading: Credit Card Annual Fee Refund Rules Explained: Is There A Grace Period?
Share your questions, experiences, and thoughts below.
Why is OMAAT owned by point . me? I always thought you are in full control of your own blog, but you aren’t even listed in the About section of their website. Do they have any saying in what content you can/have to post?
@ Endre — I can’t answer the “why” question, because OMAAT isn’t owned by point.me. What am I missing?
Anyone know the policy for Cardless? I can't seem to find it on their website.
@ Peter — I’ve heard some say that Cardless has no grace period whatsoever, and you’re on the hook as soon as the fee hits. Can anyone chime in with recent experience?
Another aspect to this question is whether any benefits you get upon renewal get clawed back. If there are statement credits, a hotel free night, a companion certificate etc. that you receive and you use them in the 30 days, then cancel the card and get a refund on the fee, does the bank claw those back?
MA residents get special treatment I believe:
Section 114C. A card issuer as defined in section one of chapter one hundred and forty D, whether located within or without the commonwealth, may assess an annual fee provided that the cardholder as defined by said section one, is notified of the amount of any such fee on or with the billing statement for the billing period prior to that in which the annual fee is billed to the cardholder's account. A cardholder may cancel his credit card agreement at any time during this period without penalty. If the cardholder cancels the agreement at any other time during the year, he shall receive a refund on a pro-rata basis of two-thirds of the annual fee.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXX/Chapter140/Section114C
What if you just signed up for a card, it has just arrived in the mail but you haven't activated/used it yet, and changed your mind about wanting it, can you call and cancel and get a refund with account closure?
Massachusetts has a state-specific law that requires a prorated refund if cancelled after the fee has hit and after any grace period has expired.
I recently product changed my AA card to the no-fee variety prior to the annual fee billing, and was surprised to see that they billed the fee to the no-fee card regardless. I’ve called several times for this to be credited and Citi insists that I pay the fee, wait up to 51 days for it to be refunded (which will create a credit balance), and then call back in to request my own money be returned to me. It’s essentially an extortionate interest-free loan to Citi. Absolute madness! Seriously considering closing all of my cards with them over this BS.
There's a new caveat I'm experiencing with Amex. Annual fee due Oct 5th. I downgraded an Aspire to a No Annual Fee Hilton Card in late September. If I cancelled I would have had the fee completely erased. Since I downgraded they prorated the fee which didn't account for the entire amount.
I've never seen this before in all my years of upgrading and downgrading Amex cards. We went back and forth about it even opening a case but from now on I'm either going to downgrade in month 11 or cancel entirely.
Does Barclays really give 60 days to cancel for a full AF refund? My Barclays business card statement says the AF is refunded if the card is cancelled within 30 days of the statement closing date.
Frequent Miler had an article yesterday about Bilt and some vagueness in their policy for cancellation or downgrading within the first year. It's a bit vague but one way to read it is they can claw back some of the Bilt Cash or introductory bonus you received.
Ben, I just closed my Wells Fargo Autograph Journey card about 50 days after the annual fee was charged. I confirmed with the phone agent that I am eligible for an annual refund if closing the card within 60 days of the annual fee posting date. I would've loved to product change to a $0 fee card but the agent said that wasn't possible.
A lot of issuers have tightened their belts on product changes. Tried with Citi recently and it was not pretty. Used to be able to go from an AA card to Custom Cash or Double Cash, etc. No mas. No retention offers lately, either. HUCA don't help, neither. Eh, better to just close 'em and do a reset.
I call the credit card company on or near the renewal date. I’m going to cancel because, supply a reason, then I get, how about miles, no fee for the next year? This works frequently to add value to the renewal fee.
Some credit cards give large bonuses for the second year of a cards life by offering them in weeks 5 or 9 after renewal. Good indicator of when cancellation won't allow fee refunds.
FWIW, I just downgraded a Citi CC and they claimed a 51 day period for a full refund of the annual fee. I ended up getting the refund in about 20 days.