Can the bank cancel my credit card rewards points if I close the card or default?
Last updated: 2026-07-12 · Educational content; not legal advice.
Short answer
Rewards points are a contractual perk governed by the rewards program's terms, not a statutory entitlement — so yes, most programs forfeit unredeemed points when you close the account, fall into default, or simply let points expire, and those disclosed terms are generally enforceable. What the law does require is that the program's rules, including expiry and forfeiture, be disclosed to you (RA 10870 §11; RA 3765 truth in lending). The practical move is to redeem or transfer your points before you cancel or before the account goes delinquent, and to read the rewards terms for the expiry window. If points vanished contrary to the disclosed terms, treat it as a billing/service issue for the issuer and escalate to the BSP.
Primary sources
Frequently asked
Can they really take my points when I close the card?
Usually yes. Rewards points are governed by the program's terms, which typically forfeit unredeemed points on closure, default, or expiry. Those disclosed terms are generally enforceable.
What protection do I have?
The law requires the program rules, including expiry and forfeiture, to be disclosed to you (RA 10870 §11; RA 3765). If points were removed contrary to those disclosed terms, that is a billing/service dispute you can escalate to the BSP.
How do I avoid losing points?
Redeem or transfer your points before you cancel the card or before the account goes delinquent, and check the rewards terms for the expiry window so points do not lapse unused.
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