A consumer says a credit card purporting to offer points in a Gap rewards program dupes consumers by forcing them to meet strict qualifications or face losing their benefits.
Lead plaintiff Christian T. Kim claims consumers are lured into getting a credit card that offers rewards in the form of points that go toward purchases at Gap, Banana Republic and Old Navy; however, the retailer allegedly wipes out customers’ points balances when they get a physical replacement for the card, such as if the card is lost or stolen. The class action lawsuit claims Gap Inc. and the other defendants failed to inform him and other customers about this when they signed up for the credit card.
Kim says he obtained the rewards credit card and used it to earn points; however, he claims Gap wiped out his substantial point balance without warning after he obtained a replacement card due to fraud notifications from Synchrony Bank. He says he had no way of knowing his points balance would be wiped out in this situation and, thus far, only half of his accumulated points have been restored.
“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 complaint alleges.
The plaintiff points out that, while the Gap rewards program incentivizes consumers to shop at these stores, Gap Inc.’s bottom line is negatively affected when consumers use points to purchase discounted items. The class action lawsuit alleges that because of this negative impact, Gap Inc. uses arbitrary methods to reduce or wipe out customers’ point balances.
“Customers must meet stringent qualifications in order to continue to accumulate and sustain the rewards points, including keeping the credit accounts open, in good standing, and not more than two months past due,” the class action lawsuit states.
“Meanwhile, based on Defendants’ publicly available marketing materials and disclosures regarding the credit card, Defendants cannot render accumulated rewards points expired as long as these qualifications are met.”
The class action lawsuit alleges that there are certain instances in which the retailer will completely wipe out their rewards balance — in the event their credit card is lost or canceled due to fraud and needs to be physically replaced.
The plaintiff says he and other customers were not informed that Gap would use these situations to negate their Gap rewards program points. Kim says he and others would not have obtained and used the credit card had they known.
“Plaintiff, other customers that use the Gap, Inc. credit cards, and the general public have been injured by Defendants’ deceptive and unfair practices,” the complaint contends.
The plaintiff seeks to represent a nationwide Class of consumers who obtained credit cards to participate in the Gap rewards program and lost their points prematurely, along with a California subclass.
The class action lawsuit is seeking damages, restitution, and a court order stopping Gap Inc. from negating accumulated points when the physical credit card is replaced.
Do you use the credit card linked to the Gap rewards program? We want to hear from you. Tell us about your experience in the comment section below.
The lead plaintiff and proposed Class Members are represented by Todd D. Carpenter, (Eddie) Jae K. Kim and Scott G. Braden of Carlson Lynch LLP.
The Gap Rewards Program Class Action Lawsuit is Christian T. Kim, et al. v. Gap Inc., et al., Case No. 2:20-cv-11452, in the U.S. District Court for the Central District of California.
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31 thoughts onGap Rewards Program Tricks Consumers into Credit Card, Class Action Lawsuit Says
No rewards new card , I have my card since 2014 and I don’t know where my points went!