Class Action: California Man Claims Gap Unlawfully ‘Wiped Out’ Credit Card Rewards Points

New to ClassAction.org? Read our Newswire Disclaimer

Gap, Inc., Banana Republic, and Synchrony Bank face a proposed class action filed by a Banana Republic credit card customer who claims his rewards points were unlawfully deleted when his card was replaced.

Per the lawsuit, the terms and conditions that govern the Gap rewards program and Synchrony-issued retail credit cards allow for rewards points to expire only under specific circumstances and fail to inform consumers that their points will be lost if their card is lost or stolen.

The plaintiff, a California resident, claims he and other customers were injured by the defendants’ “deceptive and unfair” marketing of their retail credit cards and would not have signed up for the rewards program had he known the companies would “prematurely wipe out his accrued rewards points.”

According to the lawsuit, Gap offers a rewards program that allows shoppers to accrue points by using their store credit cards to make purchases with Gap-affiliated brands, including Banana Republic, Old Navy and Athleta. Gap profits from the program by incentivizing members to prioritize shopping at its retail stores and, through an agreement with Synchrony Bank, earning a portion of the profits derived from customers’ credit cards through their balance level, fees, and interest, the suit explains.

Customers, the case says, can earn points to redeem at Gap stores as long as they keep their accounts active, in good standing, and not more than two months past due. The lawsuit stresses that according to the defendants’ marketing materials, rewards points will not expire as long as these conditions, which include making a purchase at least every 24 months, are met.

The defendants’ representations, however, are false, the suit charges, because the companies fail to mention that in certain situations, such as when a credit card needs to be replaced due to loss, fraud or other reasons, the customers’ rewards points will be wiped out.

“This is what happened to Plaintiff,” the complaint states, adding that the defendants benefit from the practice by not having to provide discounts on future purchases at Gap brands.

The plaintiff, a frequent Gap companies shopper, says he opened a Banana Republic credit card in 2016 after viewing the defendants’ advertisements, marketing and disclosures regarding the rewards program. Per the case, the plaintiff always ensured his account remained qualified to accumulate and sustain rewards points.

In January 2019, however, the plaintiff replaced his Banana Republic credit card after losing the card and receiving fraud alerts from Synchrony Bank, the suit says. Although the plaintiff was mailed replacement cards, he discovered that the defendants had eliminated his rewards, which exceeded 800 points, according to the case. The plaintiff says that despite complaining to the defendants over the next several months about the missing points, he was only restored half of the amount he had accumulated.

The case argues that the defendants’ representations regarding its rewards program and the conditions under which points could expire were “false and harmful” to the plaintiff, who says he relied on such false representations when deciding to open his card.

“If Plaintiff had known that Defendants would prematurely wipe out his accrued rewards points, then he would have considered signing up for a different credit card and would have been able to accrue rewards points and monetary discounts through the different credit card,” the lawsuit says.

The lawsuit looks to cover anyone in the U.S. who had a Gap brand credit card, including for Gap, Banana Republic, Old Navy or Athleta, and lost accumulated credit card rewards points despite having made use of the card within 24 months prior to the loss of the rewards points. The case also proposes a subclass of California residents who meet the same criteria.

Get class action lawsuit news sent to your inbox – sign up for ClassAction.org’s newsletter here.