Capital One, No Hassle Rewards RIPOFF, devalues customer reward miles by 140%! Richmond Virginia

Capital one has cut the value of reward miles by 140%! When I signed up with Capital One in November of 2001 (and agreed to pay $20 annual fee, see footnote 1) 25,000 miles earned enabled the customer to receive one domestic flight in the 48 contiguous states.

Capital One has changed this policy as of November 1, 2005 and now the cost of the flight you choose determines how many miles it will cost you. In my case my family lives in California and I live in Chicago and the flight was $360. Capital One said that it would cost me 60,000 of my miles. That is 140% more, than the 25,000 promised.

I never received notice regarding this change in policy. When speaking to people at Capital One, one person said notice was sent in September and another said October. I never received such notice. In fact, I have also gone through my statements to see if notice was included there. It was not.

If you have ever received a Capital One statement, you know the statements include notices about many programs they have. The statement also includes a section at the top of each statement I receive called “Reward Summary” about the reward miles I have and if miles are scheduled to expire. No such notice was given in the "Reward Summary" about this dramatic devaluation of my miles.

I have 142,000 miles, which had an approximate value of $2000 (5.6 trips to California), but under the changed plan it is worth $820. This change in policy applies retroactively to all unused miles earned over my years in the program.

1. I have excellent credit and have many no annual fee credit cards to choose from but chose to pay the $20 annual fee charged by the Capital One program for the miles specifically.

David
Chicago, Illinois
U.S.A.