Avianca Vuela Visa’s Maddingly Stupid Annual Fee Rule
This will be a quick mini rant, but something I need to write for cathartic reasons. At first, I figured it was a one off occurrence. I figured that I simply was dealing with an uninformed phone rep. But, I received a few more reports of it happening to other people in our Diamond Lounge group when I posted about it. It was one of the more bang my head into a wall moments I have had with a phone rep. So let’s get into it.
Banco Popular’s Ludacris Annual Fee Rule
I signed up for the Avianca Vuela Visa around a year ago when it had the 60,000 mile welcome offer. Some people end up keeping the card long term since you can earn 2X at grocery stores and gas stations. For big spenders, this used to be a good uncapped way to rack up Lifemiles. It has become a lot less useful once the Citi Premier did its refresh and the card started earning 3X at grocery stores. With Lifemiles being a transfer partner of Citi ThankYou points the Premier now offers a better way to earn Lifemiles. You will rack them up at a rate of 3 instead of 2 and the annual fee on the Premier is lower ($95 vs $149).
Because of that I had been waiting for the annual fee to post and then I planned on closing the card. A few days after the fee posted I called in to close the card. The rep said no problem and went through the spiel and then mentioned my $149 balance. I told her that was for the annual fee and that should be refunded since it has only been a few days since it posted. She said that they no longer refund annual fees once they post. Huh?! That is a CNB level move right there, and even they backed off it some.
She did say that she could waive the annual fee if I kept the card open.
Say What?
Yes, that is correct, you read that right. Is your face currently contorted into the most dumbfounded look you have ever had like mine was? They would not refund the fee if I closed the card but they would waive it if I would keep it open. Which means I could call in a few days later and close it without paying the fee. I would just need to wait for the credit to post. How does this make any sense? What is the point of it? I guess they hope that I forget about it and we get to do this dance again in a year. Really they are hoping that I start using the card again, fat chance there. It is a ludicrous rule because anyone with a brain can figure out how “to game” this set of rules.
More Issues
To throw salt in the wound, the annual fee didn’t credit so I had to pay it. I then had to call in and have them reissue the annual fee credit and now have a negative balance on my account instead of a zero balance. So I now have to spend it down or call once more to ask for a check to be mailed out 🤦♂️.
Final Thoughts
I know we are in a pandemic and everyone is hurting for money but Banco Popular’s annual fee refund rules are ludicrous. How can you refuse to refund an annual fee mere days after it posts? Do you want people to close the card after a few months instead to ensure they don’t get saddled with another year of fees? Throw in the fact that you will refund the fee if I keep the card, which I can just turn around and cancel right after. Why tie up your employees time with this process? Why be proactively against your customers? Because you are simply hoping it happens again, that is why.
Has anyone else had this same experience when canceling their Avianca Vuela Visa?
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My Capital One Venture card’s annual fee posted so I asked if I could downgrade the card a couple days later to get my annual fee returned and they said this is not possible!!!!!! They said the only way to get my annual fee back is if I cancel the card. So basically they are forcing me to close the card rather than just downgrade the card and keep it open in order to get my money back. How dumb is that?!?!?!
That is pretty dumb. Maybe it was an ill informed rep – have you tried calling back and asking another one?
Yea I got my annual fee taken care of this year! I just figured I would tell them, “how with the pandemic going on right am I supposed to pay for benefits that are not useful for me?’ And the agent said yes we understand we can waive the annual fee”, so I was beyond happy. then a week later I got the credit, it went great. A card i always get my fees back for every year is on both capital one cards, they always take care of the fee for me.(at least the last 6 years) but then the other day life miles credit card sent me an offer.
Casey, we have great news about your Avianca Vuela Visa® Card!
You can earn an extra 1 LifeMile for each $1 spent on eligible purchases made with your card ending in 9607.1 This is in addition to the LifeMiles that you always earn!2
Register by November 22, 2020. This offer will be active two business days from the date of registration and your purchases will earn the additional rewards for the following 90 days.
This was the first ever offer I got from them and since I buy gift cards at the grocery store this will go to good use.
That is a good offer for sure!
Had a similar situation with them. They waived the annual fee after my first year. This year they wouldn’t waive it so I said I would close the card but they said the annual fee would not be refunded whether I keep the card open or not. So, I paid the card and have filed a small claims suit against them. Little tricky finding their registered agent for service of process here in Michigan but I will keep you posted on the results. Sued for just enough that they would never want to pay an attorney to fight. Don’t think they’ll want to battle in a small community in northern lower Michigan. B of A made me do a similar thing a few years back, they called to settle.
Hi Bob,
I just read your comment and I’m in the same situation. I would actually keep the card if I had any use for it, but I haven’t used it in 18 months. I was told that I can cancel the card but will have to pay the fee. How could I go ahead and submit a small claims suit? It’s pathetic that they prefer to hold on to $149 and lose a customer for a lifetime. Scammy tactics.