Beginning in January, American Express is going to begin withholding miles and points earned by cardmembers of co-branded Delta, JetBlue, Hilton and Starwood American Express cards if you don't pay your bill by the due date.
Not only are you likely to be charged a late fee, but those paying late will be charged a $29 reinstatement fee if you want your miles or points to be credited to your account. This new fee is in addition to the $19 or $38 late payment fee and a higher penalty interest rate, which is a hefty 27 percent right now. Currently, cardmembers of American Express co-branded loyalty cards have their miles sand points immediately credited to their accounts monthly.
Mona Hamouly of American Express said this policy is new for the loyalty frequent flyer miles and points co-brand cards, but more aligns these cards with the policy they have with all of the other cards they issue. "We've had this policy in place for several years for our charge cards as well as our lending cards. Over the past few months we've been working to bring card policies into alignment. Since 1998, we've had this policy in place for our charge cards." That's 11 years ago and it seems that only the airlines idea of adding additional fees for almost everything is catching on elsewhere.
If the higher interest rate and late payment fee weren't enough of a deterrent for paying your credit card bill late, now you'll have to pay a fee to get your miles or points as well.
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