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Mar 04, 2009 -- American Express will pay you $300 to fire them!
The financial meltdown of 2008-2009 has surely had some bizarre moments. But there's one thing that has really made Americans sit up and take notice of the collective freakshow.
American Express is now sending out targeted letters to select customers -- they're not divulging how many customers -- offering them money to pay off their balance and turn in their cards. In fact, people can earn $300 for firing AmEx!
What a reversal that is. This is an industry that used to send out some 7 billion solicitations a year like they were candy -- all in an effort to get you hooked on plastic. The low point for Clark was being on a plane when the flight attendants ran a contest to see who had the most credit cards in their name. The winner had 13 cards!
AmEx must be getting very nervous about the possibility of default among people who are only paying minimums or a little more each month. Their offer stipulates that you have to pay off your entire balance in a 60-day period to get the $300. And they don't care how you pay it off; it can even be balance transferred.
The company just wants to reduce its exposure on accounts that computer modeling shows could default. This really speaks to the dire difficulties all the big credit card issuers are facing.
How are you doing with your credit? Are you wheezing? The No. 1 early warning sign of trouble is when you can't pay your balance in full each month when the bill comes.
Remember, plastic is not one of the four food groups. In other words, credit cards are not necessary for you to live. If you have a problem, you may need to remove plastic from your diet entirely.
Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.
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What others are saying
AMEX is not worth the hassle
I have had my Delta Gold skymiles amex for over a year and have never been late on a payment and paid my bill in full yesterday - how was I rewarded? AMEX cancelled my card with NO WARNING. Talk about embarrassment when you go to use it and are declined. My credit score is over 700, Amex referenced EXPERIAN, from which I pulled my report this morning. I can see nothing that triggers unwarranted cancellation of my account. I will NEVER deal with AMEX again!
American Express needs to be sued
I have been with AE over five years now. The have just canceled both of my cards without warning. I first got hit when in a store and trying to make payment and the cashier told me my card was declined. I could not believe it because i just paid the balance in full on that particular card. I will fight this to the end with people of like minds . AE needs to be sued, because this will screw many peoples credit like me. It is just wrong to treat customers like this. What world are we in now ???
American Express
American Express is biting the hand that feeds them. The increase in the rate is going togo full circle and bite them in the back side. I use the AM card for a business account. I really don't want to close it out because I do use it at Costco. But to punish them I will no longer put other purchaes upon it, and will switch to a neither account card which has a rate about 9% lower than there increase. I want them to know that it will hurt them in the long run.
Just got Hit from AMEX
Yes, I just got a letter that will dramatically increase my rates, although I have been with them for many years, no late payments, etc., but still not good enough. Maybe we just need to let companies like this go out of business for the way they are treating their customers.
American Express - Costco Card Cancelled
We have had an AMEX Costco card since 2002. We have always paid the balance in full and on time. This week they cancelled the card with no warning. We tried using it and it was rejected. They said we longer met their profile and our account was cancelled. We were also told to order our Experian credit report because they had received info from Experian that no longer qualified us for AE. Credit report was perfect, with not 1 single negative comment. I called Costco Corporate who said they regretted the decisions that AE was making but they could not help us and they had many other customers being cancelled. So beware, if you have an AE card and have been paying on time make sure you "don't leave home without another card" - you maybe cancelled by AE with no warning or explanation.
AmEx Cancellation
My daughter paid off all but a couple hundred dollars on her AmEx card (leaving a balance so they wouldn't cancel her). Within two weeks thay cancelled her anyway. Apparently when auditing her account they saw she was only paying her minimum, which made her a risk of default. When she called to appeal this and have them check her records again for her balance payment AmEx told her it was already cancelled and there was no way to reverse it. So for my daughter: trying to keep her credit scor ein good standing was all for nothing. Maybe AmEx should consult their customers prior to cancellation. This could have been avoided.
amex blue card cancelled me today
i've always paid on time, but i decided to bump up my usual minimum payment of $30 to $250 and $350 in the last 30 days, ie two payments.i'm generally pretty calm, but i raised my voice with the phone account rep. said "this is thievery and the kind of thing obama is addressing in dc right now. how do you people sleep at night?!" then i did the math for her and asked her to confirm for me that $422 (my current balance) is a lower number than $986 (last month's balance). and asked "why is it your canceling me again!?" the trouble i will have to go through to fight this is truly aggravating, but i'm doing it on principle. i'm going all the way up the chain. they said it was due to my large balances on other cards. what they don't know is that i've been on a self-imposed debt pay down program and i'm $6k less in debt that i was 8 months ago. and on their blue card, i cut the balance in half, more than half. it's an outrage that by doing the right thing, my credit score will be penalized.
American Express cancelling card
I had an american express card through costco for a little over 2 years. I paid my balance on time, in full every month. Then, with no warning, they cancelled my card. When asked why, which took forever to get an answer, it was the "computer modelling" and an "account check through experian." There is nothing different on my credit history, except now for this. Thanks a lot AmEx for screwing up my credit.
How?
Jason,
The "negative impact on your credit" is the result of a decrease in your overall credit line. I don't know what your credit line was with Amex/Optima, but, if for example it was $5,000.00, just by them cancelling your card the $5,000.00 is deducted from your "available credit" on your FICO score. It doesn't matter that you don't owe them anything. This is what is at the heart of what the banks are doing. They are sc--wing us all, when we aren't the ones that "mismanaged" our finances. For the most part, this meltdown was due to the "racketeering" on Wall Street and in the Bond Markets. They are trying to turn it all around, so the focus won't be on them. Sure, some of us have overspent when we shouldn't have, but, the entire meltdown has very little to do with that. The credit freeze is all a result of the banks not trusting each other (other banks). They moved so much bad paper in the form of bonds, mortgages, Credit Swaps, insurance ect that they sunk the financial structure of the USA and now, it's all the consumers fault. It's not going to happen, but, the government needs to put a stop to all this interest rate jacking, cancelling cards, and this nonsensce of FICO scores. With regards to the FICO scores, just by doing what they did to Jason, they can ruin your credit through no fault of your own.
Amex Optima
Member since 01. Paid balance in full dec 08. spent 100-200 per month there after, and paid in full each month. Two weeks ago Amex cancelled my card and letter says my credit may be negatively impacted due to their decision, and I have paid them off in full. how can they report any negative on a consumer that owes nothing and one that they decided to cancel for no reason?
I fired them today
I've been an AMEX card holder since 1995. They decreased my limit from $12,000 to $7,500 today. Since 1995 I think I've been late 2 times. I pay more than the minimum every month. My FICO score is better than average, so not sure why they decreased my line.
credit card interest
Do you know that you are still charged interest if you pay by the due date? It says right on the statement and the site to avoid interest pay by the due date but they still charged me because it has to be two months in a row. I cannot find that anywhere! Not only do they charge, the double the interest rate. Now what?????
Amer Exp Sneak Attack
I payed my min payment on time every month. I had made a $600 payment in a 2 week period to pay some bills to get my reward. When I went to pay the car repair, I found out that AE lowered my limit by $400 which left me 100 to pay my $600. Received e-mail 3 days after I had found out, received letter 2 wks after. Reason: Computer decision that I was a risk.
AMEX
Your Costco AMEX to make yourself money. We pay with our AMEX where ever we can which gives pays us two percent minimum at most of those places... it is like paying 98 cents for every dollar we spend. Then we pay off the entire balance each month. We have never had a problem with AMEX and love getting our rebate check each year, which was around $500 this year.
minimum payments
I've got a bunch of credit cards. I mostly use Discover but I have AmEx for Costco and I us MC for the stores that don't take Discover. I like knowing where my money goes; and cash it just disappears without a trace (I have to dig through my wife's purse to find receipts sometimes -- some still get lost, but with on on-line access, I can usually find out what happened whenever that happens.
I also have three cards that I only make minimum payments. All three of them gave me rates that are lower than my home mortgage rate (as long as I don't buy anything else with the cards). So my extra money goes to pay off the house.
Credit can be a trap, but it can also be a tool.
AMEX
I wish everyone would fire AMEX! They are one of the worst credit card companies and many businesses won't pay their high prices so you can't use the card everywhere. They charge for the card (yearly), then a high percentage interest ratefor carried balances, then a late fee that is often $29-$39. They can move your closing date and payment due date, too!
Schneider
At one time my Wife had 36 (Yes,35 Credit Cards) Well, I had someone paying my bills for me & wound up in Bank reptsy. Now that the bankruptsy is over & paid for I would advise everyone in the US to cut up their damn credit cards. Live within your means. If you're going to buy something take that amount of cash with U not a pocket full Oh ya, the Chapter 11 paid back the damn credit cards minus the interest. I will never get another credit card in my life. The interest they charge is horrific. This would have never been brought to my attention if I hadn't appointed someone to use my money & pay them BLOOD SUCKERS Oh ya, I own my home,car & have money in the bank. I do have a debit card thru my bank & that's as far as I will ever go If one wants to be taken advantage of get those "credit cards or borrow on your house" The blood suckers never fail to come up with nes ways to get one's money My favorite is Humphery Bogart said "I like living below my means" One doesn't need every damn thing they show on TV & quit trying to keep up with the Jones as they are in debt over their head Just a bit of advise of someone who has been there & been taken advange of. Do what U like but consider the fact U will never get those Credit Cards paid off with the minimun they want.You'll just buy more & more. Oh ya. as for my Credit Rating I could give a damn less what they say. Thank U GARY
To Jordan
Jordan, This is not about "rewarding " people with huge debt. These people still have to come up with the cash to pay off their account. AmEx simply feels that these people will likely default & they would rather lose $300 than the whole balance. That is a good business decision. The timing of this offer is also good..when people are getting their income tax refunds back.
this worked for me
As others have related, many years ago I began returning those credit card offers in the postage paid envelopes. I write "Please remove me from your mailing list & save trees!" on the application form, then fold the whole shebang - including the envelope it arrived in - and send it back to them.
I cannot recall the last time we received a credit card offer!
To cancel or not??
Somewhere I heard that you should not cancel a paid off credit card because it affects your credit score. So, what to do? Should we just pay them off and stick them away or cut them up OR cancel? If you don't use them for a length of time how does that affect our score? Help I need to win this one-sis and I are at odds-who is right?
Using debit cards for car rentals, hotels
This is not wise...I worked for a major rental car company for many years...when using your debit card: a credit check is run on you if you are a day late returning the vehicle (emergency, sickness, death in family..whatever reason), they are authorized to take enough money out of your checking account to cover additional days (which are higher if not returned on time). You do not have to authorize this - it is in the fine print. You could end up with zero balance in your checking account before you are aware! It is always best to use a credit card. When usign a credit acrd for car ental, hotel and flights...you have the option to "disagree" with the charge, money is not tied up while waiting an answer.
Root of the problem
While AMEX and all other credit card companies and banks have no ethics what so ever, the real issue lies with our lawmakers. If they would simply pass laws that prevent these companies from screwing people, this article would never need written. Accepting money from lobbyists is more important though. Not to mention, the more money big corps make...the more money govt makes through taxes.
Money from AmEx
My wife and I pay off our AmEx each payday. We are very responsible and live within our means. Where is our $300?! It makes me sick that people with huge debts are being rewarded in this down economy.
Four Food Groups
Clark,
I enjoy reading your comments and appreciate your insights.
Are you aware that your reference to the four food groups is out of date? Nutritionists no longer talk about the four food groups. Instead, they refer the food pyramid.
Not all of your readers are boomers like you and me:)
Lois Huffman
you DO NOT NEED a credit card
If you get a Visa or Mastercard DEBIT or CHECK CARD (where the money is deducted from your checking account), you DO NOT NEED a credit card. You can rent cars, book hotel rooms, purchase items off the internet...anything you could normally do with a credit card. And, you get fraud protection if it is a Visa or Mastercard Debit/Check card. Don't fall victim to the idea that credit cards are a necessity...that's just NOT TRUE!!
Credit & Stimulus
It's a shame my wife and I don't owe a penny. Isn't there some kind of 'Reward' stimulus for those who own their own home outright, paid for a new car with cash in 2008, and don't have any credit card debt? We aren't rich but we don't like to owe money either....We would rather pay ourselves the interest....
Re-blue
I have never made a late payment, and always paid alot more than due, and they cancelled the minute I paid it off, then blamed me. It is wrong for them to trash my credit, when clearly this was not my fault.
amex
it's the only card i possess. needed for traveling, car rental, and reserving flights. what now?????
AMEX
I was a green card holder since 1989, last September AMEX cancelled my card because of a credit review. In the past year I had a couple late payments, I paid the late charges and interest. As of August 2008 I paid off all my credit cards(and cancelled them) and was going to keep my AMEX because I would have to pay it off every month, but THEY cancelled it! Tried to redeem my REWARDS Points, but they would not do it. I was paying $40/year for the program since 1998! The last $40 was taken in August 2008 and they cancelled my card the next month(they refused to give a refund after THEY cancelled my account. Hope they go bankrupt because loyalty to their customers is in the toilet.
AMEX credit card cancellations
How is this not "red lining"?
Credit Cards
The Opt Out doesn't work, I still get them. What I have found effective is to use their pre-stanped return ovelope, stuff it with enough paper to exceed the two oz limit, and send it back to them. They are forced to pay the extra postage fee. It almost makes you feel good.
No Credit Cards?
It may be wise to reduce the number of credit cards you hold, but in today’s world it is very inconvenient, if not impossible to live without one. If you don’t have a credit card, you have to carry large sums of cash to pay for things like gas. If you don’t have a credit card, you can’t but things over the internet, rent a car, purchase an airline ticket, or reserve a hotel room. But you don’t need more than one or two.
AmEx
Clark, American express canceled my card after I had it for many years and always paid off my balance every month in full. I sent in a payment via electronic banking with my credit union. When I selected the date, I mistakenly made it a month late. I guess that prompted a credit search and they found that a car I had co-signed for my son had gone into default and was repo'ed.
AmEx firing customers
AMEX has become my card of choice. I do pay it off each month and it provided me this month with the only "Stimulus" check I'm likely to see; over $400.00 for using their card this past year. I use AMEX Business thru COSTCT!
credit cards
If you trave and stay at hotels and rent cars you need a credit card, they are a necessary in life.
Credit card mailing offers
To those who hate credit card mailing offers, you can choose to opt out from the pre-approval letters: Calling 1-888-5-OPTOUT (1-888-567-8688) or https://www.optoutprescreen.com/?rf=t
I've opted out and I certainly do not get anymore junk mail!!! woohoo
Amex affects your credit score
I hate the fact that good Amex customers get their credit lines reduced simply because Amex is running scared. I've been a good customer for years and have never paid a bill late. But by reducing my line of credit (several times over the last 6 months), they impact my credit score. I know this has happened to many other Amex customers as well. Can someone please change the way credit scores are calculated?? Why should they be able to adversely affect my credit score when I have done nothing wrong?
Amex Blue Cash
I am a dedicated blue cash card user. I pay the balance every month and get cash back (credit to my card)once per year. Last year I got back over $1,000, about 2.5 % of the amoont I put on the card. Free money if you're spending the money any way.
Amex Refund
What if you owe Amex but they do not send you a letter...will you still qualify for the refund? Is it best to call Amex if you have not received a letter and ask for a refund if you cancel?
Thanks,
Excellent Credit Need Not Apply?
So it seems that the computer modeling will choose poor to good credit to make this $300 offer to, right? Then, if this is how it works, all who have taken care of protecting their credit and paying their bills, sometimes more than the minimum, ontime are left out.
Amex Blue card
Pls advise the negativity re the Blue card.
No Debt
I am seventy years old...have ALWAYS lived below my means. Own my home and my car free and clear, carry zero balance on my credit card, but have lost 55% on my IRA and other investments. Resent having to bail out those who were irresponsible and lived way above their means.
Amercian Express Credit Card
I am a long-time customer of the American Express Business Card, first the "green" card and then the "gold" card. This one has to be paid off at the end of the month. Which I consider a good thing.
American Express customer service though has periodically sold me several incarnations of the their interest-incurring "blue" card products, promising big benefits like lots of extra points for free airline tickets or other perks which turned out not to be available to me unless I charged a huge amount and carried immense balances--which I do not do. I had trouble getting these accounts closed and off the books both at American Express and at the credit rating bureaus.
I love my "gold card". That and its travelers' checks are really what American Express was originally all about and what it is really best at doing. If you are a responsible user and can qualify through the business that you work for or through owning your own business, I recommend their "business" gold card. But I recommend staying away from the "blue" products and "sky-miles" products.
How do we do this? Call them?
Anyone know how we get this offer?
Credit Cards can be helpful
Credit cards can be helpful too. Sure pay them off as soon as you can. The problem is that sometimes you need credit even if you have savings to help you out. For example, medical bills can wipe out your emergency savings. And the American medical industry is greedy. They charge as much as they can and the insurance won't pay it off. Sometimes they will work with you and sometimes they won't. So to protect your good credit you have to use a credit card to pay off the medical bill. Then the credit card Nazi's can do anything they want with only a simple notification. Any percentage rate, late charges, whatever they feel they need, can be added on your bill. We need better medical cost control - and don't believe the fear, uncertainty, and doubt (FUD) that medical quality will go down if the government controls it. Many other countries have quality medical care for their citizens and the government is involved. So not using credit cards is a good idea unless you need to. Count yourself fortunate if you never needed the loan. Stay healthy and save your money.
Federal Mortgage Relief poll question
None of the response options fit me. I am mortgage free, but neither rent nor live with family. I OWN my home 100 percent! I sold my house three years ago, put the proceeds into the condo that I presently live in and resisted the demands of my realtor to get a mortgage. BOY AM I GLAD NOW THAT I DIDN'T! I have no credit card balances and no car payment either.
Send the envelope offers back
I wait until I have a full stack of pre-paid envelopes from all the offers I get, seal them---sometimes put junk offers or reverse the term papers in---then mail the stack of envelopes back. I heard they have to pay more in postage when these envelopes are sent back? Just got too tired of shredding these offers that had my name on them. (believe it or not, this came from Andy Rooney!!)
Credit cards
Our government needs to do the same! They spend money they don't have, borrow money from China and just 'print' more money bills...and we taxpayers are told that this is ok?
Credit Cards
We enrolled in Dave Ramsey's Financial Peace University 8 weeks ago, and the first thing they challenge you with is to quit taking out loans, cut up the credit cards, and pay cash. It is strange at first, but I will never go back to them again.
What this country needs, both for individuals and government, is to drop the debt and only buy what we as individuals and as a country can afford.
We don't need the credit markets "unfrozen", we all need to grow up and live within, or below, our means.
Credit cards
In the past month I've paid off two, lowered the 3rd down to under 30% and am paying off the 4th so that by December 31,2009 it has a 0 balance. I'm done with credit cards. Even if the economy comes back I'm strictly a cash person. It's ironic banks are largely responsible for this financial mess we are in and they want to break the backs of those paying their bills on time and well above minimum accounts. So, let's go credit card less and see how the banks like it.
What a waste...
@ "me again"
I completely agree. I cry a little for mother earth every time I open my mailbox.
I'll admit, I do have CC debt...
...but I'm paying it down, and I haven't used the cards in months. As for my AMEX cards, they are always paid in full... can I still get my $600? ;)
definitely a sign of how bad things are
You know it's bad when AmEx could care less how those debts get off of their books, when they will even accept balance transfers to another card!
Debt is a hot potato right now, and NO ONE wants to touch it. I sure don't! (debt-free)
AE
If if had a penny for every american express card application me and my wife got over the last seven years before this crisis started it would be over $300. I wonder how many billions in postage and paper waste they created over the years.
