Here’s a quick background:
I’ve been with AMEX since 2003, never missed a payment, never late, always paid in full and have been a Platinum Card member having accumulated over 150,000 points to date. A very good and loyal customer.
In the past couple months, I thought of an idea to accumulate more rewards points than my typical monthly spending would allow. Using my personal paypal account to send payments to my business paypal account, I was able to use my AMEX to essentially fund “cash”. I would then withdraw the cash to my bank account to eventually contribute to paying the monthly AMEX bill. There was never any attempt of fraud or unscrupulous activity, just merely accumulate more points, faster. Keep in mind I have done this for a few months and as mentioned above, always paid my bill in full and never late. Perfect.
Well today I received a call from AMEX stating that my account had been suspended, and aftering asking some questions regarding my employment, address, and salary, it lead to the inevitable question of why I was sending paypal payments to an account of the same name (my name). I explained the aforementioned story and was told that “Unfortunately, your actions violate the cardmember’s agreement will be reviewed for account cancellation”. Horrified, I explained my ignorance to such terms of the agreement (who reads that fine print crap anyway?) and vowed to discontinue my practice and go about my normal spending. Apparently the reason it’s such a big deal is due to the fact that my actions were deemed as using my AMEX to acquire cash and apparently severely against their rules.
Despite my plea for completely being unaware and noting my excellent 4+ year history of flawless financial responsibility with them, it appears that they will review my case and very likely contact me within 7-10 days to formally permanently cancel my account, just like that. My ignorance is no excuse, but c’mon this is ridiculous. I need not mention that I have to pay paypal fees and the idea of acquiring cash doesn’t even make sense.
Any dopers with similar experience/advice in the matter? It would be quite a shame to dissolve a relationship with a company whose card I used exclusively and loyally for so many years.