American Airlines is being sued for confiscating frequent flyer miles from cardholders

By Jonathan Stempel

(Reuters) – American Airlines was sued on Monday in a proposed class action by two customers who said the airline stripped them of 1.1 million frequent flyer miles after doubling the number of credit cards offering mileage bonuses.

Ari and Shanna Nachison said American falsely accused them of fraud for opening multiple AAdvantage accounts, with cards issued under co-branding agreements with Citibank and Barclays.

The residents of Los Gatos, California, said that while some card applications prevented multiple mileage bonuses within a 48-month period, that was not the case for them, and it remained unclear why American closed their accounts in early 2020.

Both said the Fort Worth, Texas-based airline cited violations “related to the collection of ineligible miles and benefits; through fraud, misrepresentation and/or abuse of the AAdvantage program” in emails that the terminations were announced.

Ari Nachison said he lost 564,463 miles, while Shanna Nachison said she lost 550,664 miles.

The Nachisons said they were exempt from applicable statutes of limitations because the U.S. emails did not mention specific violations or credit cards in question, leaving them without legal remedies.

American did not immediately respond to requests for comment. Attorneys for the plaintiffs did not immediately respond to similar requests.

The lawsuit filed in federal court in San Jose, California, seeks damages for people whose AAdvantage accounts were terminated based on alleged fraud in obtaining Citi-AAdvantage and Barclays-AAdvantage credit cards.

Some airlines, including American, have increased spending and mileage requirements in recent years for frequent flyers, who use their status to…

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