Gap, Banana Republic Credit Cards Vanishing Rewards Class Action

“Rewards programs are the primary driver of customers’ choice in credit cards[,]” says this complaint. The class action alleges that Gap, Inc., Banana Republic, and Synchrony Bank promoted the rewards associated with their credit card, but that in certain situations they permit themselves to wipe out accumulated rewards.

The National Gap Companies Class is all US residents who have or had cards for Gap brands, including for Gap, Banana Republic, Old Navy, and Athleta, who have lost accumulated rewards, even though they used the card within twenty-four months before the loss of the rewards. A California Gap Companies Class has also been defined, for those living in California.

Gap is the third largest retail clothing company in the US, the complaint says, and it has popular subsidiary brands that include Banana Republic, Old Navy, and Athleta.

To keep consumers shopping at its stores, it “enhance[es] the amount of points that accumulate when shopping at Gap, Inc. brands versus other retailers, as well as through the fact that the accumulated points translate into discounts for items at Gap, Inc. brands.”

The complaint quotes some of the reward promises made by the companies, such as “Find a whole new way of rewarding yourself[,]” “Reward yourself everywhere you go[,]” or “$5 reward for every 500 points you earn[.]”

The program’s marketing materials say that the companies cannot simply cause the rewards points to expire as long as the conditions are met. However, the complaint alleges that this is false, because “in certain undisclosed situations, such as upon the replacement of the credit cards due to loss, fraud or other reasons, [the companies] take this unrelated event as an opportunity to wipe out customers’ accumulated rewards points.”

The Gap Inc. Credit Card Rewards Program Terms and Conditions has only one provision about the expiration or erasure of accumulated rewards. The complaint quotes it as saying, “Points earned but not used towards the issuance of a Reward will expire 24 months after your last purchase if your Account has been inactive … for 24 months. Rewards will expire as of the expiration date set forth in the issued Reward.” A card is “inactive” when no purchases are made with it.

The plaintiff in this case, Christian Kim, had a Banana Republic card on which he had accumulated points. Sometime around January 2019, because he lost the card or because of fraud alerts from Synchrony, he had to replace it. When he received the new card, the complaint says, Kim “discovered that Defendants had eliminated all of his accumulated awards points … which exceeded 800 points.” Kim requested that they be returned to him, but according to the complaint, he has gotten back only around 400 of the lost 800-plus points.”

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Gap, Banana Republic Credit Cards Vanishing Rewards Complaint

December 18, 2020

“Rewards programs are the primary driver of customers’ choice in credit cards[,]” says this complaint. The class action alleges that Gap, Inc., Banana Republic, and Synchrony Bank promoted the rewards associated with their credit card, but that in certain situations they permit themselves to wipe out accumulated rewards.

Gap, Banana Republic Credit Cards Vanishing Rewards Complaint

Case Event History

Gap, Banana Republic Credit Cards Vanishing Rewards Complaint

December 18, 2020

“Rewards programs are the primary driver of customers’ choice in credit cards[,]” says this complaint. The class action alleges that Gap, Inc., Banana Republic, and Synchrony Bank promoted the rewards associated with their credit card, but that in certain situations they permit themselves to wipe out accumulated rewards.

Gap, Banana Republic Credit Cards Vanishing Rewards Complaint
Tags: Breach of Contract, Rewards Program