US Airways Freezing DM Accounts and Confiscating Miles Without Apparent Cause

As a leading advocate for frequent flyers and the traveling public in general, FFOCUS is deeply concerned about recent events allegedly taking place within US Airways under the guise of "Fraud Control." We have had reports from some of our members that US Airways sold them blocks of miles under a legitimate promotion, and then confiscated their miles and terminated their accounts when they tried to redeem the miles purchased. These members supposedly followed ALL PUBLISHED RULES of the Miles Purchase Program, and US Airways has not provided them with any recourse or valid explanation for their punitive actions.

While we acknowledge that any airline has the absolute right and even duty to ensure their program rules are properly followed, it now appears that customers who have acted legitimately within the terms and conditions of the Dividend Miles program have been punished for the misdeeds of others.

The FFOCUS Policy Board believes that US Airways is behaving in an arbitrary & capricious manner and in some cases without just cause. The trigger for account audits and arbitrary closures seems to follow a pattern: Customers responded to promotions aggressively, resulting in significant revenue for US Airways. Small accounts instantly grew to several hundred thousand miles, and subsequently end up "Under Review," Suspended or Closed, with no refund for the amount of the purchased miles.

In many cases, US Airways has refused to explain to the customer the reasons for their actions, and has refused to engage in meaningful dialogue with those affected. Furthermore US Airways has not permitted any discussion or appeal on the part of the affected customer, effectively stonewalling.

The actions undertaken by US Airways create the perception of impropriety. We urgently call upon senior management to publicly explain why customers who followed the rules have had their miles confiscated, and to assure Dividend Miles members that they can continue to redeem Dividend Miles for award travel without the fear that their accounts will be terminated or frozen without cause.

The FFOCUS Policy Committee