Jim at Bargaineering tells a story about a woman he knows who took the American Express purchase protection feature to the extreme, getting reimbursed for a jacket she purchased that got an oil stain when she was on a ski trip.

From the post:

Use your AMEX card when you pay and you get 90 days of protection against accidental damage or theft. You file a claim and the protection replaces the item or reimburses you up to the amount of the purchase price. There’s a limit of $1,000 per occurrence and up to $50,000 per cardmember account per year. You can file an American Express claim online or call 1-800-322-1277 and you’ll be asked to provide proof of theft, accidental damage, or vandalism.

They were sent a claim form to fill out and needed to provide additional documentation such as receipt of purchase, AMEX statement with the purchase, and description of the damage. Had the jacket been stolen, instead of damaged, they would’ve had to include a police report as well.

American Express has a reputation, among merchants, of having the highest processing fees out of any of the issues. Not coincidentally, they offer some of the best consumer protections like return protection and purchase protection.

Have you ever taken advantage of the AmEx protection program? Where do you draw the ethical line for when it’s acceptable to do so?

American Express Purchase Protection Perk [Bargaineering]

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