Aeroplan Freezing Accounts due to travel hacking

Recently, some Aeroplan members have reported that their accounts have been frozen/locked. When they log in, everything appears to be fine. However, when they get to the page where you select points or cash & points, an error message pops up saying We’re sorry, we’re not able to process your request at this time.” Basically, they can’t make any redemptions with their Aeroplan points.

Of course, many people have called Aeroplan to find out what’s happening. The response has been consistent. “At the request of our financial partnerships, we have recently had to freeze a number of AP accounts pending analysis that needs to be conducted. We are investigating welcome bonus activity that appeared to violate certain CC terms and conditions.”

Well, we now know the reason for Aeroplan freezing accounts, and you can 100% blame travel hacking.

Aeroplan updates its terms and conditions

Aeroplan just sent out an email to all its members stating that the terms and conditions have been updated. For the general public, these terms and conditions won’t make a difference. However, those who travel hack will want to read two specific terms that were introduced.

Welcome Bonus Provisions

In connection with a Welcome Bonus being made available for becoming a holder of an Aeroplan Credit Card, such Welcome Bonus is intended as an incentive for a Member to become a holder of an Aeroplan Credit Card where that Member is not then a holder of the specific type of Aeroplan Credit Card for which the Welcome Bonus is being offered.  Similarly, in connection with bonus or incentive Aeroplan Points being offered as an incentive related to Products and Services, such bonus Aeroplan Points incentives are intended for a Member who has not previously received bonus Aeroplan Points for the same Products or Services, to acquire such Products or Services.

Aeroplan may, in its sole discretion, choose to limit the number of Welcome Bonuses or similar bonuses or incentives a Member may receive in any period, and, in addition to the other remedies set forth in these Terms and Conditions, reserves the right to suspend, revoke or terminate the Account of any person who engages in a behaviour of excessive use of the Welcome Bonus offers.  Such behaviours include but are not limited to: (i) applying for multiple Aeroplan Credit Cards across one or more product types or across one or more financial institutions that issue an Aeroplan Credit Card; (ii) a pattern of cancelling, or disengaging in, an Aeroplan Credit Card shortly after receiving a Welcome Bonus or similar bonus or incentive; and (iii) a pattern of purchasing and then cancelling or returning any product or service for which Aeroplan Points were issued.

It’s a common strategy for travel hackers to sign up for new Aeroplan credit cards, get the welcome bonus, and then cancel or product switch their cards. For reference, Aeroplan has over ten credit cards available in Canada. Aggressive travel hackers could easily earn 300,000+ Aeroplan points a year just from the welcome bonus.

If that wasn’t bad enough, some of these hackers were switching credit cards every few months to increase their chances of getting more points. They would literally get the same card two to three times a year.

Aeroplan has clearly recognized this pattern of abuse, and they’re shutting it down. Funny enough, you’ll notice that many travel hacking websites haven’t reported these shutdowns yet. That’s because their business/street cred depends on people signing up for new cards via their links.

Full disclosure, I also earn a commission or referral bonus with some of my links. However, I’ve never advocated aggressive travel hacking behaviour. In fact, I’ve written about the risks of travel hacking in the past. Aeroplan freezing accounts is no surprise to me as many people are way too aggressive with travel hacking.

Prohibited activity

Aeroplan Membership is a privilege that can be suspended, revoked, or terminated at any time, for any reason, and without compensation. Reasons for suspension, revocation or termination include, but are not limited to: (i) a circumstance where a Member intentionally engages in a pattern of activity or behavior that, in the reasonable opinion of Aeroplan, is intended to circumvent or work around these Terms and Conditions, or the terms and conditions of any Aeroplan partner; (ii) any abuse by a Member of any of these Terms and Conditions, any additional applicable terms and conditions or any benefit, privilege or reward associated with the Aeroplan Program; (iii) any misrepresentation by a Member to Aeroplan, its affiliates, participating partners or suppliers or to any entity associated with or participating in the Aeroplan Program; and (iv) any other actions or conduct of a Member deemed by Aeroplan, in its sole discretion, to be damaging to Aeroplan, the Aeroplan Program or the interests of Aeroplan’s affiliates, participating partners or suppliers, including, but not limited to: (i) applying for multiple credit cards across different product types (e.g., Entry, Core, Premium), across multiple financial institutions that issue an Aeroplan Credit Card in order to circumnavigate these Terms and Conditions or the terms and conditions of any such financial institution issuing an Aeroplan Credit Card thereby receiving multiple Welcome Bonuses; and (ii) a behaviour of cancelling, or disengaging in, an Aeroplan Credit Card shortly after receiving a Welcome Bonus.

Where, in the reasonable opinion of Aeroplan, a Member has violated these Terms and Conditions, Aeroplan may, at any time and in its sole discretion, take one or more of the following actions: (i) freeze the Account of any Member while Aeroplan investigates suspected activity on the part of that Member; and (ii) refuse to credit the Account of any Member, or debit the Account of any Member. 

In the event a Member’s participation in the Aeroplan Program is terminated by Aeroplan in accordance with these Terms and Conditions, all accumulated Aeroplan Points will immediately be forfeited.

Aeroplan reserves the right to restrict or refuse Aeroplan Membership in the Aeroplan Program for any reason, in its sole discretion, including, if you do not meet the requirements set forth in these Terms and Conditions, if you are suspected of fraud or illicit conduct or have had an Aeroplan Membership previously revoked or terminated by Aeroplan.

Unauthorized reproduction of any Aeroplan Membership card or number, or fraudulent misrepresentation of an Aeroplan Membership is prohibited and can result in legal action. Aeroplan Membership cards and Membership numbers belong to Aeroplan and may be revoked at any time in its sole discretion.

The prohibited activity section always existed, but it now adds a line about applying for different Aeroplan credit cards across multiple financial institutions to get the welcome bonus. Again, Aeroplan can’t be more clear. Multiple welcome bonuses are not allowed.

The rest of the language in the prohibited activity section is intentionally vague. It essentially states that Aeroplan can lock your account for any reason if they suspect fraudulent activity. That said, they’re looking for people who manufacture spending to get points or are lying on their applications. 

Aeroplan freezing accounts due to prohibited activity should not surprise anyone. Travel hacking was always a grey zone. Now it’s clear that Aeroplan does not accept it.

How to get your Aeroplan account unlocked

The reality is that there’s nothing you can do while Aeroplan conducts its investigation. Calling 100 times won’t make a difference. If you’ve done nothing wrong, then your account will likely be unfrozen eventually. However, if you’re guilty of breaking the terms and conditions, I wouldn’t count on seeing your points again.

That said, there are a few loopholes that might work. If you’re part of an Aeroplan Family Sharing Plan, or if you join one, you could potentially have another member of the plan make a redemption for you. However, since points are deducted in equal percentages in family plans, that may not be fully beneficial. Ideally, you want to join a plan where the other member has no points, so only your points will be deducted. Note that there’s no guarantee this will work.

Another option is to set up a new Aeroplan account. This won’t get your points back, but it will allow you to start fresh while you play within the new rules.

There’s absolutely no point in complaining about things on social media or trying to escalate things. Aeroplan freezing accounts is a direct result of people circumventing the rules, they’re within their rights to ban you. Go ahead and complain to the media. They likely won’t feel sorry for the person who has been taking business class flights on points every year.

How the new Aeroplan terms and conditions affect travel hacking

Whether you travel hack or not, you will need to make adjustments. The terms and conditions actually give us a better guideline on how to avoid Aeroplan freezing accounts.

First off, you’ll want to limit your credit card applications. Applying for one new card a year, and using that card regularly won’t set off any flags. If you end up cancelling thatd card before your year is up, that likely won’t trigger anything. That’s because it’s perfectly normal for people to cancel a card after a year.

Also, I wouldn’t consider applying for Aeroplan cards across different financial institutions to be a concern. For example, if you have one Aeroplan credit card with American Express and one with TD, it’s perfectly normal. American Express isn’t accepted everywhere, and many people have multiple credit cards.

In addition, having a business and personal Aeroplan credit card is perfectly fine. Many people have businesses.

Travel hacking is a marathon, not a sprint. Essentially, you should limit new applications to once a year. It’s also a good idea not to apply for the same card for at least one year after you previously cancelled it. These terms and conditions are targeting people who are clearly abusing welcome bonuses.

You could look at  American Express credit cards since they earn you Membership Rewards points. These points can be transferred to Aeroplan on a 1:1 basis. That said, American Express has been banning people that have abused their cards for years now. Only apply for cards that you’ll actually use.

If you want to save on travel, focus on cards that will give you the most bang for your buck and are worth keeping. For example, the American Express Cobalt Card has one of the highest earn rates and you can transfer your points to Aeroplan. Alternatively, the American Express Aeroplan Reserve Card comes packed with Aeroplan benefits. Both of these cards are worth holding for the long term.

Final thoughts

Aeroplan freezing accounts is no surprise. With so many travel hackers these days, it’s become increasingly difficult to secure seats on points in business and first class. Aeroplan would prefer its most loyal customers to access these seats first.

That said, it’s not like these changes will stop people from travel hacking. It’ll slow them down, but the odds are that the most hardcore travel hackers will find loopholes. I personally plan on doing the same thing as I always have. I’ll apply for cards with a generous offer once a year and hold cards with long-term value to me.