Amazon Prime Refunds Just Got Bigger: Here's Who Qualifies

If you signed up for Amazon Prime without quite meaning to, you may now qualify for up to $200 back. The FTC just expanded its refund program, raising the maximum payment from $51 to $200 and covering more people than before.

I'm Ralph Estep Jr., a licensed public accountant with 30 years in the business, and today's show also covered two more settlements that could affect your wallet, plus a subscription audit worth doing this weekend.

Quick take

• Amazon's Prime refund cap jumped from $51 to $200, and eligibility now covers people who used 11 to 20 Prime perks, up from 10. Payments start October 1 with nothing to file.
• Amway is paying $225 million after its own disclosure showed the typical distributor earned $657 a year, not the $40,000 that got pitched.
• Credit Acceptance Corporation, a subprime auto lender, is paying $694 million. Most of that removes old debt from credit reports rather than putting cash in anyone's account.
• The average household spends $219 a month on subscriptions. Most people guess $86. That gap adds up to $1,596 a year.

How do I know if I qualify for a bigger Amazon Prime refund?

Last year, the FTC settled with Amazon for $2.5 billion over how hard Prime was to cancel. Now the maximum refund is going from $51 to $200, and eligibility is expanding from 10 or fewer non-shipping Prime perks used to 11 through 20.

Amazon already has the sign-up records, so there's nothing to file. Automatic payments to newly eligible customers start October 1, sent by Venmo, PayPal, or check. The FTC will never call you about this refund, so treat any call "verifying" it as a scam.

What did Amway actually pay people, and why is the FTC involved?

Amway told recruits they could make more than $40,000 a year. Its own 2023 income disclosure said the average was $657. The FTC found that most people who signed up spent more money than they got back. That mismatch, a promise the company's own records contradicted, is what triggered a $225 million settlement.

If anyone pitches you a business opportunity this week, Amway or otherwise, ask for the company's written income disclosure statement before you spend a dollar. Every legitimate one has this document, and it's public.

Why is Credit Acceptance paying $694 million, and will I get a check?

Credit Acceptance is a subprime auto lender, meaning it buys loans traditional lenders turned down. The New York Attorney General and 40 other states allege the company originated loans it knew or should have known borrowers couldn't afford.

Here's the part that surprises people: most of the $694 million isn't cash in the mail. $388 million wipes deficiency balances for cars already repossessed, so the leftover debt disappears from your credit report even though the car is gone. Another $246 million covers cars that weren't repossessed, and $60 million is actual cash.

Credit Acceptance has until November 2, 2026 to notify eligible borrowers. If you've ever had a loan through them, especially if your car was repossessed or your wages were garnished, make sure they have your current contact information.

A couple common questions

Do I need to file a claim for the Amazon refund? No. Amazon already has your account information and sends the refund automatically starting October 1.

Will the Credit Acceptance settlement put cash in my account? Usually not. Most borrowers will see the deficiency balance removed from their credit report instead.

Got a money question of your own? Send it to becomingfinanciallyconfident.com, or watch the show live weekdays at 11:30 AM Eastern at becomingfinanciallyconfident.com/live.