\n<\/p>\n
A loyal customer\u2019s years-long habit of saving up rewards points ended abruptly when a quiet policy change decimated his account balance.<\/p>\n
Aaron Braun, a Massachusetts resident and regular at Dunkin\u2019, had been banking rewards points on the chain\u2019s app for years \u2014 more than 93,000 in total. He planned to let his kids use them for free breakfasts on their way to school, now that they had driver\u2019s licenses of their own.<\/p>\n
But then the rules changed. Last fall, Dunkin\u2019 updated its rewards policy so that points now expire one year from the last day of the month they\u2019re earned. Braun didn\u2019t redeem his balance in time, and overnight he lost 62,000 points, roughly the equivalent of 100 coffees worth $260 total, according to CBS News Boston.<\/p>\n
\u201cI wrote and said, \u2018I\u2019ve been loyal to you, but you\u2019re not showing any loyalty back to me,\u2019\u201d Braun told the local broadcaster in a story published Jan 16 (1). \u201cIt\u2019s a local company, I mean, Dunkin\u2019 was founded up here. They\u2019re all over the place, but they started up in Massachusetts.\u201d<\/p>\n
It didn\u2019t matter. The points were gone, and Braun says he now makes his coffee at home. Dunkin\u2019 declined to comment, CBS News Boston reports.<\/p>\n
A 2024 report from the Consumer Financial Protection Bureau (CFPB) on credit card rewards programs found the most frequent complaints about consumers not receiving promised involved unexpected promotional conditions, devaluation or revocation of points, and redemption problems.<\/p>\n
While the CFPB\u2019s report focused on credit card rewards, the Dunkin\u2019 episode highlights a basic but often overlooked truth about rewards programs. Loyalty points are not money, and they often don\u2019t come with the protections consumers associate with cash or bank deposits.<\/p>\n
\u201cThe rule of thumb I have is you\u2019ve got to use it or lose it,\u201d Deirdre Cummings of consumer advocacy group MASSPIRG told CBS News Boston. \u201cThese things can change in a moment\u2019s notice.\u201d<\/p>\n
Read More: The average net worth of Americans is a surprising $620,654. But it almost means nothing. Here\u2019s the number that counts (and how to make it skyrocket)<\/strong><\/p>\n Companies typically reserve the right to alter rewards programs at any time. Points are marketing tools, not contractual obligations, and the fine print almost always allows brands to devalue or eliminate them. In exchange for points, consumers hand over purchasing data and personal information, a trade that Cummings called \u201cfree not free.\u201d<\/p>\n<\/p><\/div>\n Dunkin\u2019 isn\u2019t an outlier. Airlines have repeatedly raised the number of miles needed for award flights. Credit card issuers tweak redemption rates and benefits. Grocery and retail chains regularly adjust point values or expiration rules. The risk sits squarely with the consumer.<\/p>\n The safest way to think about loyalty points is as short-term coupons with a ticking clock, not as a stash worth hoarding. Stockpiling rewards exposes consumers to the risk that rules will change before points are redeemed.<\/p>\n That doesn\u2019t mean loyalty programs are useless. Used strategically, they can still offer real savings. But consumers should read program change notices carefully, set reminders to redeem points regularly, and avoid letting large balances accumulate. If a reward has value today, there\u2019s no guarantee it will have the same value tomorrow, or any value at all.<\/p>\n Join 200,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/strong><\/p>\n