CreditMattersBlog.com: American Express Wants To Help You 'Simplify Your Finances' -- Will Pay You $300 If You'll Close Your Account

Monday, February 23, 2009

American Express Wants To Help You 'Simplify Your Finances' -- Will Pay You $300 If You'll Close Your Account

Well, this sure is a different kind of deal. Instead of paying you a bonus to join, New York-based American Express will give you a $300 American Express prepaid card if you agree to say goodbye. American Express says that it is making this "deal" so that customers can "simplify" their finances. Sure. The offer, which isn't available to everyone, requires a 14-digit RSVP code. Customers are receiving this offer via U.S. Postal and email.

Let's get something straight here. If you receive this offer, American Express is telling you something: please leave. Note also that in order to get the $300 prepaid card the customer MUST pay off his or her entire balance by April 30, 2009. If the balance is not paid off by April 30, then you will not receive the $300 card. But your card will still get closed. That's a heck of a deal.

Here is a picture of the offer from American Express's Web site (click to enlarge):

You can read the fine print here (click to enlarge):

You may be wondering why American Express doesn't just close the accounts of these customers, which would save American Express $300. Here's why: the $300 prepaid card is acting as an incentive for the customer to pay down the balance in an expeditious manner. The customer has exactly two months to get that balance paid off; if he or she does, the $300 card is theirs. Not a bad strategy by American Express.

The "we want to help you simplify your finances" language is a joke, of course. But, hey, this is American Express. It has never really been good at this sort of thing.

Anyhow, be on the lookout for the offer. If you receive the offer, be sure to let me know. I'd like to see what kinds of balances are being targeted here.

Here is a direct link to American Express's offer (link).

Related Articles:

American Express Will No Longer Use Spending Patterns To Slash Credit Limits

American Express Appears to be Stepping Up Its Slash and Burn Campaign

American Express -- The Game Plan

Bad Shopping, Good Shopping? Well, Good For American Express

Being Penalized For Shopping Choices. Consumer profiling?

American Express Rates Credit Risk By Where You Live, Shop

Are Your Shopping Choices Hampering Your Ability to get Credit Line Increases?

287 comments:

«Oldest ‹Older 1 – 200 of 287 Newer› Newest»

Josh said...: You think this deal applies to those in default?; February 21, 2009 6:29:00 PM EST
CreditMattersBlog.com said...: No. It applies to people who likely have large balances. Or to people that Amex is worried about defaulting.; February 21, 2009 6:30:00 PM EST
CreditMattersBlog.com said...: Or both.; February 21, 2009 6:30:00 PM EST
Josh said...: And I bet if you are receiving one of these offers and you continue to keep the card open and pay in small chunks you will definitely see balance chasing and other AA's..

Something is really perplexing me though. It's clear amex wants balances paid. Yet, Amex is introducing more and more new credit card products, not charge, credit products. I know they recently renewed a huge contract with Delta. Maybe it is they want people to pay down who they think will default.

I guess Amex really wants you to use these credit cards as charge cards...; February 21, 2009 6:34:00 PM EST
Anonymous said...: Wish they would have offered that to me instead of just flat out closing me. I have strung out my payments with them since it turned into a very low priority to me.; February 21, 2009 6:36:00 PM EST
Josh said...: Yeah, it's interesting who actually receives these offers.

Any significance of April 30th....

(wonders); February 21, 2009 6:37:00 PM EST
CreditMattersBlog.com said...: Josh, all bets are off (regarding balance chasing). The deal does say that after your account is closed you will continue to enjoy your current terms (APR). But that doesn't mean that Amex won't keep lowering your limit.

And you know what I think about Amex and the charge card (from the story I wrote 7 months ago):

http://www.creditmattersblog.com/2008/07/american-express-my-game-plan.html; February 21, 2009 6:38:00 PM EST
CreditMattersBlog.com said...: April 30 is NOT the end of American Express's quarter, so not sure what the significance is.; February 21, 2009 6:41:00 PM EST
The Lion said...: Odd that they didn't do the end of their quarter. I imagine this would only be available to those with a significant balance. Or, like you said, someone they think will default with a significant balance.; February 21, 2009 7:15:00 PM EST
CreditMattersBlog.com said...: You know that Amex watches accounts like a hawk. I am thinking large balances. And I am thinking customers who are considered "at risk."; February 21, 2009 7:16:00 PM EST
Marilie said...: Wow. I don't even know what else to say! Then again, I shouldn't really be surprised...it IS Amex.; February 21, 2009 7:22:00 PM EST
CreditMattersBlog.com said...: M, at least they're paying people to leave. Ha!

Hope you're doing well.; February 21, 2009 7:23:00 PM EST
Marilie said...: I'm hanging in here, CM. :); February 21, 2009 7:29:00 PM EST
CreditMattersBlog.com said...: Good to hear, M.; February 21, 2009 7:29:00 PM EST
clutchcargo said...: I paid the the previous bad girlfriend I mentioned in another thread OVER $300 to leave. It was worth every penny!; February 21, 2009 7:56:00 PM EST
CreditMattersBlog.com said...: Nice, Clutch, nice.; February 21, 2009 7:57:00 PM EST
Bob Wang said...: You have cheap girlfriends CC ;-); February 21, 2009 8:04:00 PM EST
Far Left Texas said...: Some things in life have higher levels of disbelief than others. This one is near the top of the list.

If their reasoning (can we use that word with Amex?) is going after people they are worried about defaulting, then those people probably aren't going to be able to meet the 4-30 deadline.

If they are targeting people who can afford to pay off in +- 60 days, then the people would be foolish not to take the offer - but those are the people who aren't in danger of defaulting.; February 21, 2009 8:11:00 PM EST
CreditMattersBlog.com said...: FLT, I agree. You see me throwing out ideas because who knows with American Express. They just leave you guessing.; February 21, 2009 8:19:00 PM EST
clutchcargo said...: lol Bob, This wasn't the normal daily fees, this was an actual "please leave, I'll give you anything" termination fee.; February 21, 2009 8:34:00 PM EST
clutchcargo said...: So Amex is just doing a preemptive debt forgiveness deal. Be prepared for the standard 1099C as a goodbye kiss.; February 21, 2009 8:36:00 PM EST
CreditMattersBlog.com said...: Amex is clear about this being possible income. I would expect a 1099 if someone takes advantage of this.; February 21, 2009 8:39:00 PM EST
Josh said...: I love that sunset picture. How peaceful...

Hmm...the sun is setting on you as a customer :); February 21, 2009 8:44:00 PM EST
CreditMattersBlog.com said...: That's true, Josh. Didn't even think of that. Sunset on the customer. Nice.; February 21, 2009 8:47:00 PM EST
Pete said...: "If their reasoning (can we use that word with Amex?) is going after people they are worried about defaulting, then those people probably aren't going to be able to meet the 4-30 deadline."

Far Left,

Presumably they're just trying to get as much risk off their books as possible. What this says to me is: "We think you're going to default. We would prefer it if you would default with another bank instead of us."

Some people might be able to do a balance transfer or otherwise pay off the card for the $300 -- then, as far as Amex is concerned, the risk is somewhere else. It's obviously not going to work for everybody, but given how concerned Amex is about risk exposures, it's at least worth a shot.; February 21, 2009 11:34:00 PM EST
CreditMattersBlog.com said...: Pete, sounds like you're on board with my thinking. I think you're right. Worth a shot to offer the $300. Perhaps some of the "at risk" borrowers will roll on.

Of course, if they're already in the risky category, might not be easy for those customers to roll on.

But as you said: it's worth a shot.; February 21, 2009 11:37:00 PM EST
Anonymous said...: You'll definitely get a 1099...I got one for a car rental loss payout! They've since sent a correction to the IRS, but they are sending them out en masse...; February 22, 2009 1:48:00 AM EST
CreditMattersBlog.com said...: Thanks, Anon. That's what I figure. AmEx is pretty well known for sending 1099s.; February 22, 2009 1:49:00 AM EST
Sean said...: Great thinking on Amex's part. They come out with less risk, the former customer parts ways from Amex with possibly a positive view.

Knowing Amex's love for #'s and algorithms, I wonder what sort of customer would this make sense for. Obviously Amex isn't going to freely hand out $300 unless their benefit far exceeds that.

I'm guessing Amex is targeting people who are already late on other lines of credit. So maybe Amex figures they might see if they can be the first to cash out before the customer becomes completely insolvent.; February 22, 2009 5:48:00 AM EST
CreditMattersBlog.com said...: Sean, I think it makes sense, too. Maybe Amex is hoping that a customer will do a BT to another card, which would just shift the risk to the new lender. Or, perhaps these are people who have a moderate balance $10,000<.

Obviously not sure here, but whatever it is I am sure that Amex has thought this through. I'd give it a whirl if I was Amex.; February 22, 2009 8:47:00 AM EST
TrevorHere said...: One thing for sure, AMEX never fails to come up with something new. Though, it might not always be the best thing to be on the receiving end of that something new. No such letter my way, all I get so far ~ besides MR rewards and benes ~ are thanks for my biz...; February 22, 2009 9:59:00 AM EST
CreditMattersBlog.com said...: True enough, Trev. Not always nice to be on the end of an AmEx communication.

No problems with AmEx with me. I keep getting preapproval notices. Have not bitten. May later this summer, though.; February 22, 2009 10:05:00 AM EST
SuzQ said...: Now I might consider leaving for say $1000.
What next?

First they stereotypically analyze my spending habits, than they send me a letter telling me what they "CAN" do to my account in a "Change of Terms.etc"

And now they might offer me money to close my account. OK, I'll stop being sarcastic.

I kind of doubt if I'll qualify anyway, they are always paid up. And they are always sending me special deals too.

Actually that probably is a good way for them to get paid on some accounts and lower “their: debt, at least they have thought of a way to do it that really is at both parties best interest in our current economic climate. They are doing better than the other companies.

CM ~ about those pre-approved offers, I got 0% intro APR and 3.99% on transfers offer from Discover and bit and they denied it and offered me 19.9% with $39.99 annual fee, declined it of course. I think they were wanting me to enter balance transfers and they probably would of accepted it...now they are still sending me stuff to reapply...I just got a similar one from US Bank, seriously thinking about it, but afraid to. Sorry for getting off topic, just remembered.; February 22, 2009 11:31:00 AM EST
CreditMattersBlog.com said...: SuzQ, feel free to post your comment in the off topic thread.

I think Amex might be on to something here. Good way, if people bite on this offer, to offload some of that risk.

Sucks about Discover, by the way. Entice you with a potentially good offer but then you go for it and receive something that doesn't look too good. I would have declined the offer too. Don't like annual fees.

Regarding US Bank, you see what happened with Discover. Not assurance that US Bank's best published offer is what you'll actually receive.; February 22, 2009 11:37:00 AM EST
banker said...: I am one of those folks who got the offer -- I make over 100k -- I owe them about $8000 as I did a zero balance transfer when they opened the account for one year -- I no longer charge anything and am working to pay down the debt I have -- have never been late on a payment and have a credit score over 700 -- but I live in phoenix AND I work for a bank as a mid level exec. So -- I think they have profiled me and want me gone. I will be happy to comply.; February 22, 2009 12:13:00 PM EST
CreditMattersBlog.com said...: banker, I very much appreciate the note.

How long have you had the balance? Do you make the minimum payment? Well over the minimum payment?

They could be worried, as you said, about your location and job. Very likely, actually.; February 22, 2009 12:15:00 PM EST
Anonymous said...: I think the primary purpose is cash infusion more than risk reduction. I think the April 30 date was just selected as a compromise - early enough for a quick impact, late enough to give people time to scratch up funds (tax refunds, etc.) to take advantage of it. I'm guessing AmEx would target those who they think are able to pay down balances faster but don't choose to. Reminds me of the Citi $550 offer to encourage people to pay more than their minimum ...; February 22, 2009 12:26:00 PM EST
Jake said...: I'm annoyed to not have a balance with them.; February 22, 2009 12:27:00 PM EST
banker said...: I have had the account for a year at 0% it was a balance transfer (i NEVER charged anything on it) - I did not make beyond the minimum payment while it was at 0% -- was planning on using my annual bonus to pay it off -- well -- (thanks Mr. Obama your comments cut my salary by 15% even though my bank made profits -- it isn't the big wigs that are hurt by such comments -- its the average employee (sorry - I digress)). The interest just started two months -- and I am making slightly above the minimum as I paid off another credit card first. Now I am ready to pay it off and plan to have that done within the two months or so. The $300 is just an added bonus to what I already planned.; February 22, 2009 12:27:00 PM EST
CreditMattersBlog.com said...: Anon, it's probably both. Quick cash infusions. And reducing risk. I say that because these customers have to close their accounts. If you just wanted a quick cash infusion, you'd allow these customers to do the quick payoff -- but also keep the account open.

Because the accounts are being slammed shut, I think there is a risk component here too. But I am with you. Definitely cash infusion too.; February 22, 2009 12:28:00 PM EST
CreditMattersBlog.com said...: banker, thanks for the added color. My guess is that AmEx considers you a "slow payer." It wants to hasten the process -- and it's willing to pay you.

Sounds as though you have a plan in place. Grab the $300.

Thanks for writing.; February 22, 2009 12:31:00 PM EST
CreditMattersBlog.com said...: Jake, I almost missed your comment.

You'll have to work harder to get in on these "deals."; February 22, 2009 12:38:00 PM EST
Jake said...: I'd close the account yesterday for $300!!

Is this offer even real?; February 22, 2009 12:53:00 PM EST
CreditMattersBlog.com said...: Jake, is the offer real? Of course it is. Feel free to call AmEx and ask them about it. Also, while you're at it, see how much they'll pay you to close your account.

Maybe they have another deal for other customers. :); February 22, 2009 12:55:00 PM EST
CreditMattersBlog.com said...: By the way, if anyone has a copy of this letter, I'd love to get a scanned copy so that I can put it in the story. You can email me at plastic101@gmail.com. Be sure to redact the personal information from the AmEx letter.; February 22, 2009 1:05:00 PM EST
Jake said...: I'm not getting a deal, LOL!

Those fellatists owe me $0.46!!!; February 22, 2009 1:18:00 PM EST
CreditMattersBlog.com said...: Jake, tell them that you'll exchange your 46-cent credit for a $300 credit. :); February 22, 2009 1:19:00 PM EST
TrevorHere said...: I also keep getting preapproval notices. They apparently want me to have the whole card portfolio.; February 22, 2009 1:35:00 PM EST
CreditMattersBlog.com said...: And if you have all those AmEx cards, the thinking goes, you'll have no need for any card outside of AmEx. (Rolls eyes.); February 22, 2009 1:36:00 PM EST
TrevorHere said...: No question they suffer from jealous lender syndrome.; February 22, 2009 1:38:00 PM EST
CreditMattersBlog.com said...: Absolutely. AmEx is the most jealous card issuer out there.; February 22, 2009 1:39:00 PM EST
Jake said...: DGF is primary and needs the available credit for utilization purposes and it's age helps me. I use it every few months to buy clothes so real activity is shown.

I'd still boot them for three hundred bucks, LOL! It's only a matter of time before they CLD us anyways, might as well walk away with money for cigars or other crap.

We know the CLD is coming.; February 22, 2009 1:45:00 PM EST
CreditMattersBlog.com said...: Jake, you'll cross that bridge when you get there (the CLD).

Just do what you've always done. Be a responsible borrower.

Can't do a whole lot more than that.; February 22, 2009 1:47:00 PM EST
CreditMattersBlog.com said...: By the way, if any American Express employees are reading this, feel free to shoot me an email any time. My email address is in a previous comment (above). I'd love to know why American Express does what it does.

Confidentiality guaranteed.

Thanks!; February 22, 2009 1:57:00 PM EST
Anonymous said...: The deal is not terrible but really is is that good? Say that a person owes balances on other cards with high interest rates that have also been CLD or closed by grantor. Example $10,000 balances. An interest rate above 3% on any card is costing the person more than the $300 giftcard plus you need to add the potential income tax owed. Now the Amex interest rate would have to be played into consideration, but again, if given the choice to pay a low rate Amex vs say a high rate Chase, both with high balances, you would be doing yourself a much bigger favor to pay the highest rate always. That is.. assuming of course the person wants to pay and not default.

Also, telling a customer ahead of time "regardless you will be closed" sort of invites the potential defaulter to run up the charges now, before the card closes, or else..; February 22, 2009 3:45:00 PM EST
CreditMattersBlog.com said...: You'd have to do the math, Anon, as you said. Chances are that some of these balances are sitting in low-interest, or 0% interest, deals (see banker's comments above). Probably doesn't make a lot of sense to bite on this offer.

AmEx wants its cash. It's willing to pay a fee to get it back.; February 22, 2009 3:59:00 PM EST
Jake said...: After factoring in BT fees, interest rates, taxes,etc... how many people is this really a good deal for?

Amex being strapped for cash doesn't make this a great deal.; February 22, 2009 4:45:00 PM EST
CreditMattersBlog.com said...: I think most of us would guess that this is a good deal for AmEx.; February 22, 2009 4:47:00 PM EST
Jake said...: Touche', LOL!

I hadn't considered their feelings.; February 22, 2009 4:53:00 PM EST
CreditMattersBlog.com said...: Haha. You've got to be a little more sympathetic, Jake. AmEx needs all the love it can get.; February 22, 2009 4:55:00 PM EST
Anonymous said...: I'd actually budgeted a bunch of money to pay off my Amex card with my next paycheck, but now I'm wondering if I should wait and see if I can make money on the deal.; February 23, 2009 10:13:00 AM EST
CreditMattersBlog.com said...: Anon, if you're eligible for the deal, you'll receive the offer before February 28 (which is just five days from now). This targeted offer has a short shelf life.

But, who knows, if this program is a success -- AmEx may start offering this program to even more customers in the future.; February 23, 2009 10:16:00 AM EST
CreditMattersBlog.com said...: The Wall Street Journal's "The Wallet" has picked up the story. The Journal has a call into American Express -- to get their take on the situation.

American Express Paying Customers $300 To Leave?

http://blogs.wsj.com/wallet/2009/02/23/american-express-paying-customers-300-to-leave/; February 23, 2009 10:35:00 AM EST
CreditMattersBlog.com said...: The Consumerist has a story on American Express's $300 deal as well.

AmEx Pays Some $300 To Zero Their Balance And Leave

http://consumerist.com/5158598/amex-pays-some--300-to-zero-their-balance-and-leave; February 23, 2009 10:36:00 AM EST
Anonymous said...: "or anywhwere else that AMEX cards are excepted"... lol the 'excepted' flips that statement into a negative ! proofreading anyone ?; February 23, 2009 10:43:00 AM EST
CreditMattersBlog.com said...: Haha. Good catch, anon. That's in the first picture posted above. I guess American Express was in a hurry to get that page up!

Thanks.; February 23, 2009 10:45:00 AM EST
Anonymous said...: Why can Amex just apply the $300 to cardholders balance and then close the cards?

I would love it Juniper or Capital One can do this.; February 23, 2009 10:49:00 AM EST
Jeff said...: When I noticed AmEx balance chasing my Optima ($30,000 limit dropped slightly above my $13k balance) I paid it off in full only to be rewarded the next month with a reduction of my credit limit to $500. I called and sent several emails and the response was always that the reduction was due to a high balance, even after all balances were paid off in full. The CS reps could not explain any other reason for the reduction - I have never been late on any payments, have always payed well over the minimum required, and have never been in any danger of default. Frustrated with the run around I canceled all 3 of my AmEx cards on the spot (gold, optima platinum, and a business gold). I'm happy to oblige and take my business elsewhere.; February 23, 2009 10:49:00 AM EST
CreditMattersBlog.com said...: Anon, I think this has to do with AmEx giving customers an incentive to pay off the balance ASAP. If you just paid customers $300 -- and closed the account -- the balance would still be sitting there. The customer would have no incentive to pay off the balance quickly.; February 23, 2009 10:50:00 AM EST
CreditMattersBlog.com said...: Jeff, I've been blogging here since July. I've heard so many stories like yours. SOP for Amex. I did a story on Amex chasing balances.

http://www.creditmattersblog.com/2008/10/american-express-appears-to-be-stepping.html; February 23, 2009 10:53:00 AM EST
Anonymous said...: Thanks! Well if I was an Amex customer, I would be more motivated to PIF by the deadline if Amex were to apply the $300 to the balance. oh well.

Too bad, Amex was THE card to get back in the day.; February 23, 2009 11:05:00 AM EST
Jeff said...: CreditMattersBlog, thanks for covering these stories, hopefully investors and potential customers will read these before they choose to do business with AmEx. The balance chasing and negligent credit reduction impacted my FICO by over 50 points in one month, although my score has since recovered.; February 23, 2009 11:06:00 AM EST
CreditMattersBlog.com said...: Anon, amen. I remember, years ago, when carrying an Amex card signified something good. Now? It's just another card.

Having said that, some people still strive to get an AmEx card. The brand hasn't been killed completely. Those who haven't been paying attention, still yearn for the card.

It's just another tool. Nothing more.; February 23, 2009 11:07:00 AM EST
CreditMattersBlog.com said...: Jeff, glad to hear that your score recovered. Once a customer starts getting "chased," it sucks. In the near term, the score can get hammered. But once the balance is paid down -- the score can bounce back.

To be sure, AmEx isn't the only one who has chased balances during this era; it's just the most high-profile example.

As for the $300 offer, I believe that AmEx is the first to make this sort of offer. I would not be surprised to see more card issuers do it.; February 23, 2009 11:09:00 AM EST
SLEZE said...: "Having said that, some people still strive to get an AmEx card. The brand hasn't been killed completely. Those who haven't been paying attention, still yearn for the card."

Agree. My fiancee only started getting solicited for an Amex Green Card since I added her to my Blue Card account and raised her credit score. She never would have qualified for it with her old mediocre credit score.; February 23, 2009 11:28:00 AM EST
CreditMattersBlog.com said...: SLEZE, I know several people who don't care. It's AmEx. They want a card. They don't think that AmEx's recent antics will impact them. Won't happen to me. You know the story.

I've tried to take a big-picture look at AmEx, though. Generally, I imagine that a lot of the stuff I point to isn't all that widespread. It's just that it gets a lot of publicity, so people think it's more widespread. Take financial reviews, for example. I imagine that financial reviews are rare. But we hear about them so frequently because we're plugged into this stuff.

Anyhow, best to you and your fiancee. Thanks for posting.; February 23, 2009 11:35:00 AM EST
CreditMattersBlog.com said...: The Huffington Post has now picked up the story as well.

http://www.huffingtonpost.com/business/; February 23, 2009 12:00:00 PM EST
CreditMattersBlog.com said...: The Wall Street Journal has updated its story -- with a comment from American Express.

http://blogs.wsj.com/wallet/2009/02/23/american-express-paying-customers-300-to-leave/?mod=rss_WSJBlog?mod=personalFinance; February 23, 2009 12:23:00 PM EST
Anonymous said...: This appears to be fake. There are misspellings in the alleged offer. The card is good where American Express is "excepted" instead of "accepted" for instance. Has anyone asked American Express about this.; February 23, 2009 12:29:00 PM EST
CreditMattersBlog.com said...: American Express has confirmed it, Anon. It was just a poorly written offer.

Here is the confirmation:

http://blogs.wsj.com/wallet/2009/02/23/american-express-paying-customers-300-to-leave/?mod=rss_WSJBlog?mod=personalFinance; February 23, 2009 12:29:00 PM EST
Anonymous said...: I got a similar offer from GE. I have 4K outstanding - it is on no payment/ no interest till June 09 promotion. They offered me $100 if I paid down before Jan 09. I did not take the offer.; February 23, 2009 12:42:00 PM EST
CreditMattersBlog.com said...: Anon, first I have heard of GEMB (GE Money Bank) doing that.

Thanks for the heads up.; February 23, 2009 12:45:00 PM EST
Vince said...: Wow, front page headline on Huffington Post links here.; February 23, 2009 12:53:00 PM EST
CreditMattersBlog.com said...: Vince, I always appreciate the publicity. I can tell you this: The Huffington Post has a TON of readers. My traffic is off the charts right now. Hope the site doesn't break! Ha.; February 23, 2009 12:55:00 PM EST
nutty professor said...: I am here from Huffpo, congratulations on your fine blog.

This offer looks too strange to be real, but I guess it is. Desperate measures?; February 23, 2009 1:07:00 PM EST
CreditMattersBlog.com said...: Nutty, your guess is as good as mine. I think you're right. Desperate measures and all that.

American Express would not say how many people have been targeted. Here's what they told the Journal, though:

“The intention is to help cardholders lower their debt and encourage responsible management of their credit,” said Ms. Faust.

Uh, yeah. Right. You can rest assured that this is a better deal for AmEx.; February 23, 2009 1:09:00 PM EST
Anonymous said...: I decided to pay off my AMEX account. I had a balance of about $1800.00, had never been late and had no delinquincies on any of my accounts. They then decided to close my account. I did not mind not having access to the credit limit; what I was angry about was the fact that their closing the account and documenting it as such affects my FICO score negatively although I was a great customer. I called about is and asked them to allow me to close it and they refused saying that the measure cannot be reversed. I am therefore being punished for being a great customer and I'm not sure what I can do about it.; February 23, 2009 1:11:00 PM EST
CreditMattersBlog.com said...: Anon, you're right about the closure and FICO. Just a quick note, though. Even if they marked the account as "closed by credit grantor," you don't take a hit for that. But the closure itself -- and the consequences that it plays with FIC (especially utilization) -- is what you have to worry about.; February 23, 2009 1:13:00 PM EST
Anonymous said...: I see a reason for this incentive -- think of the current person who is in over their heads -- they've got 3 or 4 cards, and they are paying the minimum. Now they get this, and say, "hey I want that $300" so they use one of their other cards' checks to pay this card balance off, get the $300, and voila, Amex unloads bad debt off on to some other bank.; February 23, 2009 1:16:00 PM EST
Anonymous said...: Can't you just see what will happen to Costco over this, as they only accept AMEX cards..; February 23, 2009 1:17:00 PM EST
CreditMattersBlog.com said...: Anon, yep. I am with you on that thinking. As long as the customer has a way to pay it off. Could prove difficult, though. AmEx might be targeting customers who would find it difficult to balance transfer or just flat-out pay it off.; February 23, 2009 1:18:00 PM EST
CreditMattersBlog.com said...: Anon@1:17, there are other American Express cards out there that are not offered through New York-based American Express. I have a USAA Amex. If that was my only Amex, I could still use it at Costco.

But that's not to discount what you're saying. Costco has aligned itself with American Express. It is not immune to stuff that's happening at American Express. Not sure what the impact is, of course, but you know there has to be some trickle down.; February 23, 2009 1:20:00 PM EST
Anonymous said...: This is like paying the daughter's boyfriend to drop her and move to another town.; February 23, 2009 1:28:00 PM EST
CreditMattersBlog.com said...: Anon, LOL. That's exactly what it is. And don't come back! That's what AmEx is saying.; February 23, 2009 1:29:00 PM EST
Christopher said...: I'm not sure that this is a bad deal for anyone. It is clear that it is good for Amex as it increases their cash intake and lowers their risk. It is good for the consumer who now has an incentive to pay off their outstanding debts. Those with a good history with Amex probably wont be involved. What is the down side to this?

I don't have a personal Amex, just one provided by my employer. I always keep a very low, or zero balance on my BOA card. I never buy anything that I can not pay off in a few months at most. Living beyond your means by way of over extending your credit risk is a very bad idea that has lead to the economic problems we have today. I say good for Amex for being fiscally responsible and offering cash to people who pay off their debts.; February 23, 2009 1:30:00 PM EST
Anonymous said...: Here's the deal. You use a credit card to BORROW money from the card company. They in turn charge you INTEREST. You agree to this relationship when you receive and use the card. You OWE them whatever money you borrow from them. Whenever you OWE somebody something, then that entity has an amount of control over you and your life. So if you don't like it, don't carry revolving credit card debt!!! It's not rocket science.; February 23, 2009 1:30:00 PM EST
Anonymous said...: hi, I pay off my American Express every month, on a yearly fee card, so maybe I'm a good test of what's going on. I feed all spending possible through Amex because I have early, very early! Altzheimers and it's a way to keep track of outgo.

I'd be happy to let you know what happens if you can tell me a date that their switching should be completely over. I'm not an online commenter, so don't know-- will this url get back to you later on?; February 23, 2009 1:30:00 PM EST
CreditMattersBlog.com said...: Anon@1:30, precisely. That's why I recommend using credit cards and paying in full. That way you avoid the shenanigans that these card issuers play.; February 23, 2009 1:33:00 PM EST
Anonymous said...: Tried enrolling. Wasn't eligible.; February 23, 2009 1:34:00 PM EST
CreditMattersBlog.com said...: Second Anon@1:30pm, I monitor all of my comments. I get an email alert whenever someone posts something at my blog. The deadline for this particular deal is February 28. I don't think you'll be included in this deal, though. Sounds like you have a charge card. Very likely that AmEx is only targeting credit cards that are allowed to carry balances on them.; February 23, 2009 1:34:00 PM EST
CreditMattersBlog.com said...: Anon@1:34pm, you have to receive an RSVP code number. Otherwise, you are not eligible.; February 23, 2009 1:35:00 PM EST
Alaskan Assassin said...: Its funny how they have this deal going on right around TAX time!!!:-)

I dont think I would trade my amex for $300.00.; February 23, 2009 1:44:00 PM EST
CreditMattersBlog.com said...: Alaskan Assassin (nice name, by the way), exactly. One of my readers mentioned the tax angle previously.; February 23, 2009 1:45:00 PM EST
Suzy said...: It's an interesting idea.

You pay off your balance, get a $300 credit card/gift card and you have to spend that money which will put money back into the economy.

Sounds interesting?; February 23, 2009 1:51:00 PM EST
BCC said...: "anywhere American Express Cards are excepted."???? WTF. It's accepted, not excepted! Amex needs to spend that money on better proofreaders.; February 23, 2009 1:52:00 PM EST
CreditMattersBlog.com said...: So Amex has found a stimulus plan that might work.

Didn't Amex receive TARP funds? :); February 23, 2009 1:52:00 PM EST
CreditMattersBlog.com said...: BCC: exactly. When I first saw the site, I thought it was a spoof because of that typo!; February 23, 2009 1:53:00 PM EST
Tabby said...: Wow, I hate AMEX :) I just paid off an account last month and they closed my account immediately afterwards. I had hit the ceiling of my credit line about two years ago and was incurring over-limit fees, but I've cleared that up and have been paying regularly (twice the minimum) with no late payments since. I guess I should have waited it out! :); February 23, 2009 1:53:00 PM EST
Alaskan Assassin said...: I wonder where there coming up with all this extra money to give away?

Thanks on the complement!!!; February 23, 2009 1:54:00 PM EST
CreditMattersBlog.com said...: Tabby, no guarantee that you would have received the offer if you had waited it out. Plus, you're better off for paying down that balance -- and staying off Amex's radar.

Keep on chipping away, Tabby.; February 23, 2009 1:54:00 PM EST
CreditMattersBlog.com said...: Alaska, Amex wouldn't say how many people it is targeting. I can't imagine that this is a huge program. I have a lot of readers. I've only heard from a few who have been targeted.

Amex did get some TARP coin, though. Maybe it's putting some taxpayer $$ to work. :); February 23, 2009 1:56:00 PM EST
Tabby said...: Unfortunately, they closed the account immediately after I paid off the balance :( Except for that little hiccup 2 years ago, I was a perfect customer for 11 years. Is it worth calling them to find out why they closed it? Or is it probably just part of this "targeting"? I lived in Detroit until about 6 months ago, so I wouldn't be surprised if that's why.; February 23, 2009 1:57:00 PM EST
CreditMattersBlog.com said...: Tabby, Detroit definitely could have played a part. Plus your balance. AmEx has been targeting geographies -- in addition to industries that customers work in. Detroit would be a suspect location, I'd guess.; February 23, 2009 1:58:00 PM EST
Alaskan Assassin said...: mabe they should pay me $300.00 to stay with them.LOL!; February 23, 2009 1:59:00 PM EST
Damsel said...: I received this offer: I had a 2.99% transfer "life of balance" offer several years ago. My credit limit was 12,700. I took it for about 6,000, and used to pay off part of my 7.99% equity. We have never been late on any payments, but recently cards have been cutting back on our credit limits. Amex has been cutting back every month by whatever we pay. Currently our limit with them has been cut to about 5800.00. We are both working in recession proof jobs and are extremely financially stable.; February 23, 2009 2:00:00 PM EST
CreditMattersBlog.com said...: They waived my annual fee last year. They're paying me to stick around for the first year. We'll see what happens when renewal time comes around.; February 23, 2009 2:01:00 PM EST
CreditMattersBlog.com said...: Damsel, American Express is chasing your balance. Plain and simple.

Read this story:

http://www.creditmattersblog.com/2008/10/chasing-balance-what-it-is-and-why-it.html

They've been doing that, right?; February 23, 2009 2:03:00 PM EST
Alaskan Assassin said...: I wonder why they chose $300.00 as the amount?; February 23, 2009 2:06:00 PM EST
CreditMattersBlog.com said...: AA, no idea. Probably figured it was a nice number that would appeal to people. But you'd like to think that there was some math involved.; February 23, 2009 2:07:00 PM EST
Damsel said...: Oh, yes, I'm aware. My husband and I have perfect credit, and back when they were handing out money like candy several years ago, we got all kinds of balance transfer for life offers. Which we took and paid off higher APRs with, so now the highest APR we have is about 7.99% fixed (of course we know they can change that, but...) but we have noticed that even though they are honoring their BT offers, which range from 1.99% to 5.99%, everytime we make payments, the limit goes down. We don't care, because we never charged anything on them anyway, we just transferred and parked the card except for our one a year 3.00 purchase. We knew the game we were playing.; February 23, 2009 2:11:00 PM EST
Anonymous said...: Must be a lot $10,000 balances outstanding for them to make this offer. When banks stopped lending many business gold cards were used in their place instead creating the cash flow problems and higher than ever defaults.; February 23, 2009 2:12:00 PM EST
CreditMattersBlog.com said...: Damsel, sorry for assuming that you didn't know about balance chasing. You sound like you're on the ball. You know how the game is played.

Thanks for commenting.; February 23, 2009 2:13:00 PM EST
Anonymous said...: i'm not sure i'm buying this.
i talked with Amex this morning and they deny offering any such promotion, but perhaps more suspiciously, there's a glaring typo in your reproduction of their offer page:
"...virtually anywhere American Express is excepted." it should be "ACCEPTED".
hard for me to believe the editors would have missed that.; February 23, 2009 2:14:00 PM EST
Damsel said...: Oh, yah. We know the games, :). My only thought is I wonder if they ever will change the terms of their BTs for life. I mean, wow, if they did that, they must really be hurting.; February 23, 2009 2:14:00 PM EST
Damsel said...: No, it's being offered. We got it.; February 23, 2009 2:18:00 PM EST
CreditMattersBlog.com said...: Anon@2:12pm, earlier I mentioned that this offer was likely targeted to credit cards. But you might on to something there. Charge cards also have Sign and Travel options. I bet some charge-card holders have been moving balances there too.; February 23, 2009 2:18:00 PM EST
CreditMattersBlog.com said...: Anon, the Wall Street Journal has already confirmed the story.

See here:

http://blogs.wsj.com/wallet/2009/02/23/american-express-paying-customers-300-to-leave/; February 23, 2009 2:19:00 PM EST
Alaskan Assassin said...: it looks like a win win situation for amex; February 23, 2009 2:20:00 PM EST
CreditMattersBlog.com said...: I think so, AA. Smart move by Amex. Maybe not great publicity; but good financial move.; February 23, 2009 2:23:00 PM EST
turtar said...: I don't think this has anything to do with TARP funds. Since they are only giving the 300 dollars after you pay off the balance, they're just taking a 300 dollar hit on whatever you are paying off. If they're doing it to increase their cash reserve, it makes a lot of sense. Personally, I've stayed away from AMEX because they've always seemed fishy to me. I guess I was right.; February 23, 2009 2:29:00 PM EST
CreditMattersBlog.com said...: Turtar, you're right, of course. Just having some fun at Amex's expense today. Not every day that readers get to poke fun at Amex. Usually it's Amex that is doing the poking. :); February 23, 2009 2:31:00 PM EST
Alaskan Assassin said...: Our poke is a tickle compared to there poke.; February 23, 2009 2:37:00 PM EST
CreditMattersBlog.com said...: Touche, AA. You got that right.; February 23, 2009 2:37:00 PM EST
Randy Macon said...: I got an AMEX blue card three years ago after I retired and discontinued my 25 year old AMEX Gold. They begged me to take it, which I did in order to have backup for my main VISA.

I have never used the Blue. Do you think I can charge 1000$, pay back only the minimum and get 300$ to close the card they begged me to take?; February 23, 2009 2:50:00 PM EST
CreditMattersBlog.com said...: Haha. Probably not, Randy. I think they're looking for "slow payers" too. You probably aren't on their target list.; February 23, 2009 2:52:00 PM EST
Anonymous said...: Isn't there something that can be done to bring public attention to this? I believe that we should have some recourse in this especially if we consistently payed way over the limit and paid off the card voluntarily. The worst part is the affect on the FICO score.; February 23, 2009 3:00:00 PM EST
Alaskan Assassin said...: Anonymous:::

Write to CNN; February 23, 2009 3:01:00 PM EST
Alaskan Assassin said...: Anonymous:::

also make a ireport on cnn; February 23, 2009 3:03:00 PM EST
CreditMattersBlog.com said...: Contact Drew Griffin over at CNN. Tell him that I sent you!; February 23, 2009 3:07:00 PM EST
DC Proud said...: CreditMattersBlog.com wrote about closing credit card accounts: "But the closure itself -- and the consequences that it plays with FIC (especially utilization) -- is what you have to worry about." This is the first time I have read that a customer decision to close a credit card account could actually have any sort of downside on a FICA score. A couple of years ago I closed a credit card I no longer needed; I've been diligent about doing this precisely because I had a couple of dings on my credit report and I'm trying to be disciplined about keeping things clean and raising my score. It seems like they've got you both ways: you're bad if you have too many credit lines open; you're bad if you try to close lines so you don't have so much open.; February 23, 2009 3:12:00 PM EST
Anonymous said...: I see a comment or two where readers are falling for the bait of applying for CC teaser rates and then only being approved for a higher interest rate.

Please beware this goes to lowering your Credit Score.; February 23, 2009 3:13:00 PM EST
The Lion said...: Does American Express have no concept of good publicity? Because it sure as hell doesn't seem like they can manage it. Every step they take seems to be the wrong one.

CM, holy crap! You have really blown this place up - haven't you!?; February 23, 2009 3:24:00 PM EST
The Lion said...: Anon, I think CM is bringing PLENTY of attention to this!; February 23, 2009 3:25:00 PM EST
The Lion said...: DC, it isn't bad if you have too many accounts - it is bad if you have too many "new" accounts or too many inquiries. But both of those "bads" go away in time. Having too few accounts leads to a possibly lower average "age" which can hurt badly.

Once the account is open - the damage is done. You might as well keep it (even if you only use it very rarely) and let it help with utilization. Closing it will *NOT* help you in any way.; February 23, 2009 3:27:00 PM EST
Anonymous said...: I may have received this offer, but probably thought it was junk mail and threw it out. If you refuse the offer, I'm not clear if your account is closed anyway, or balances are chased and then your account is closed?; February 23, 2009 3:45:00 PM EST
CreditMattersBlog.com said...: If you do NOT take them up on this offer -- meaning you do not respond to it -- nothing happens to your account, Anon.

HOWEVER, if you do enroll in the program, your account will be closed. Even if you don't manage to pay the balance off by April 30, your account will be closed if you enroll in the program.

You can call AmEx and see if you are eligible for the deal.; February 23, 2009 3:47:00 PM EST
Anonymous said...: Thanks for clearing that up, CreditMattersBlog! I'm a first-time visitor and am impressed with your timely responses!; February 23, 2009 3:49:00 PM EST
CreditMattersBlog.com said...: Things were nice and quiet this morning until a few sites starting pointing to this story. For several hours my traffic was measuring about 19 million page views for the month and 14 million visitors. That was based on the hourly traffic flow, which means that I was getting huge traffic.

Of course, the site will get back to normal by the end of the week. But I much appreciate the traffic. Nice for the blog to get some exposure. Lots of people are interested in credit right now.; February 23, 2009 3:50:00 PM EST
CreditMattersBlog.com said...: Anon, one thing my blog is: responsive. I get an email alert whenever someone posts a comment. Generally, I respond to messages within five minutes. If I am away from my desk (rare), you'll notice a longer lag. But, by and large, expect a response within a couple of minutes.; February 23, 2009 3:51:00 PM EST
Anonymous said...: My husband and I have a Costco Amex that gives an annual cash rebate. He travels a lot and charges his last minute flights as well a lot of other travel expenses, but everything is paid off in full each month. So we just got our annual rebate which was a nice sum. Just wondering if Amex will want to get rid of us as customers. They get the fees from the transactions (sometimes the balance is over $20k a month) and we pay the annual Costco membership fee ($100), but our rebate was a lot more than that annual fee.; February 23, 2009 4:02:00 PM EST
CreditMattersBlog.com said...: Anon, you're likely safe (at least you won't be getting this $300 promo). Amex is targeting folks who are carrying balances. Don't know how high the balance needs to be, but we do know you have to have a balance to get this offer.

You sound like Amex's ideal customer. You charge large amounts on the card and you pay it in full each month.; February 23, 2009 4:03:00 PM EST
pjc said...: Is this offer only for AMEX cards where you can carry balances or does it apply to gold and platinum cards as well? (charge cards); February 23, 2009 4:05:00 PM EST
CreditMattersBlog.com said...: Pjc, not sure which cards are being targeted. Definitely the credit cards are being targeted. That's where most of the balances will be carried. However, if charge-card customers have been using the Sign and Travel option, there could be balances there as well. In that case, it would make sense to target those customers, too.

But I don't know for sure. Just thinking out loud here. Amex hasn't said which cards -- or how many customers are being targeted.; February 23, 2009 4:07:00 PM EST
Anonymous said...: I always pay my AmEx bill in full but I would still like the same offer.; February 23, 2009 4:09:00 PM EST
pjc said...: I have a gold card that i use for day to day charges and pay in full each month and i dont use the sign and travel option.... should i be worried to get the offer or if you pay your balance in full you are somehow safe?; February 23, 2009 4:10:00 PM EST
CreditMattersBlog.com said...: pjc, you won't be getting this offer. NO worries.; February 23, 2009 4:11:00 PM EST
CreditMattersBlog.com said...: Anon, my emailbox echoes your sentiments. Some of my readers (who don't carry balances) wish Amex would offer them this deal to go away. :); February 23, 2009 4:12:00 PM EST
CreditMattersBlog.com said...: Bloomberg has picked up the story now as well.

http://www.bloomberg.com/apps/news?pid=20601213&sid=aDhMMI9EMl5Q&refer=home; February 23, 2009 4:23:00 PM EST
Pete said...: CM: it looks like Bloomberg is citing you -- very good!; February 23, 2009 4:31:00 PM EST
CreditMattersBlog.com said...: Pete, exactly. Nice to see the reporter giving me credit for the story. Often it doesn't work that way. Indeed, Hugh Son, the author, could have done that story without citing me at all. That he gave me a tip of the cap is nice.; February 23, 2009 4:33:00 PM EST
Anonymous said...: I got this offer. I've been with them for nearly 8 years with a blue card (I can carry a balance.) I believe I started with a $5500 limit and at one point they up'd me to $18,000. I've used that card to pay for a lot of my home projects since I've always had a really great rate on it (better than my HELOC). I am currently carrying a balance of $13k. Though I haven't used the card in ages, they have been systemically dropping my limit to be a couple of hundred over the current balance. That's annoying because no matter how much I pay onto it, it always makes me looked maxed out. At least they haven't up'd my rate though. I didn't read the offer past you balance would need to be paid in full by 4/09 since I knew that was an impossibility. Maybe they will close the account anyway.; February 23, 2009 4:46:00 PM EST
Anonymous said...: I've had an Amex Gold charge card for a couple of decades but started with an Amex Green right out of college. An American Express card WAS a prestigious card back then because even if you had good credit, you still had to have some minimum salary in order to qualify for the card. Like Corvettes back then, when you limit supply/access, you create "prestige". I've turned down their platinum charge card invitation three times because I have no desire to pay a $300+ annual fee for plastic prestige. But I'm a definite fan of Amex.

My guess is Amex has never been comfortable with credit cards...and customers who carry a balance from one month to the next. They jumped on that bandwagon back in the '90's when Americans were bingeing on plastic. With the economy in a downward spiral and unemployment going up, your paying history and credit record is no longer a guarantee that you'll have a job next month. They're preemptively dumping their credit card holders. I bet in another couple of months, the yardstick they're using to identify the dumpees, will be even tighter. Unfair?...yeah. Insensitive?...yeah. Thoroughly ruthless good business?...you bet!

Donna; February 23, 2009 5:01:00 PM EST
CreditMattersBlog.com said...: Donna, thanks for the comment. See my story here about my game plan when I got my Amex card last summer:

http://www.creditmattersblog.com/2008/07/american-express-my-game-plan.html

Note what I say at the very end of that story. In total agreement with you about Amex not being comfortable with customers who carry a balance from month to month.; February 23, 2009 5:03:00 PM EST
CreditMattersBlog.com said...: Anon@4:46pm, thanks for that note. The more I hear from readers who have received this offer, the easier it will be to figure out the kinds of balances that are being targeted.

Thanks again.; February 23, 2009 5:04:00 PM EST
The Lion said...: I don't have an Amex...you think they will pay me $300 to STAY away?; February 23, 2009 5:21:00 PM EST
CreditMattersBlog.com said...: Not sure, Lion. Maybe you can get them to pay you to be nice to them. Haven't you written nice things about Amex in the past? Ha!; February 23, 2009 5:23:00 PM EST
CreditMattersBlog.com said...: Looks like the NBC affiliates are picking this up on the Internet. I've seen several NBC sites with this story.

http://www.nbcdfw.com/around_town/shopping/AmEx-Will-Pay-You-to-Close-Your-Account-.html; February 23, 2009 5:54:00 PM EST
Anonymous said...: I have a Citi Card Amex? Will I be a candidate for this rebate program?; February 23, 2009 5:55:00 PM EST
Jen said...: I also received this offer, but it doesn't make sense for me to take it. Like Damsel, I took advantage of the 2.99 BT offer years ago, and they have been balance chasing my account for several months now. The current balance is about $3600, and I only pay the minimum. We have a few other cards carrying balances, all with higher rates. We have been making all our payments on time, but our total debt is around $25k, so I am sure we are "high risk". Even if I could pay this off, it will be last on my list.; February 23, 2009 5:55:00 PM EST
CreditMattersBlog.com said...: Anon, nope. This deal is coming out of the New York-based American Express. The Centurion Bank.

Citibank only uses American Express's payment network. Citibank underwrites its own Amex cards. Thus, no on Citi.

Thanks for the comment.; February 23, 2009 5:57:00 PM EST
CreditMattersBlog.com said...: Jen, makes perfect sense. No point in paying down a 2.99% BT when you have bigger fish to fry. Tackle the higher APR cards that you have.; February 23, 2009 5:58:00 PM EST
CreditMattersBlog.com said...: MSN MoneyCentral has picked this story up now.

http://blogs.moneycentral.msn.com/smartspending/archive/2009/02/23/amex-paying-cardholders-to-close-accounts.aspx; February 23, 2009 6:02:00 PM EST
Green said...: Amazing how bad things are going for these banks that they are now offering 300 for closing and paying your account. It's actually pretty scary and should be a red flag to all of us that the next shoe is dropping.; February 23, 2009 6:13:00 PM EST
CreditMattersBlog.com said...: There can be little down that Amex is trying to move up in the payment line. This is a way for them to possibly get paid ahead of other lenders. Pretty smart.; February 23, 2009 6:17:00 PM EST
Anonymous said...: Does it perhaps help them justify their BailOut money to have less accounts? I was recently targeted by Amex and my account closed for wholly illegitimate reasons. I have had NO other credit problems with anyone else and I have a great score, yet Amex cut me off for NO REASON..; February 23, 2009 8:20:00 PM EST
Anonymous said...: Hell, I have been trying for years to get them to close my account and send me the small credit it has on it. Why don't they help *me* simplify my finances?; February 23, 2009 8:23:00 PM EST
CreditMattersBlog.com said...: Anon, American Express has been closing accounts for some time. In fact, they've been doing it for years. Check out my index of American Express stories. You'll see what I mean.

http://www.creditmattersblog.com/search/label/American%20Express; February 23, 2009 8:23:00 PM EST
CreditMattersBlog.com said...: Anon@8:23pm, thanks for the chuckle. You have a small credit that Amex refuses to turn over?; February 23, 2009 8:23:00 PM EST
lookingglass said...: I'm wondering if Am Ex could consider this a settlement and report it as such to a credit report. Part of me thinks that they'll charge the $300.00 gift card to the closed account and then report it as an agreed upon loss.

If one enrolls in the program they are already setting themselves up for a "closed per the lender's request" line on their credit report. Showing something like this as a settlement isn't hard to imagine.; February 23, 2009 8:25:00 PM EST
CreditMattersBlog.com said...: lookingglass, your comment goes to show me how little trust there is for American Express these days.

But, no. Your scenario probably wouldn't come to pass. However, the $300 prepaid card is likely going to be reported as income (see AmEx disclosure).; February 23, 2009 8:27:00 PM EST
CreditMattersBlog.com said...: Reuters out with a story:

http://www.reuters.com/article/marketsNews/idINN2335219120090223?rpc=44; February 23, 2009 8:30:00 PM EST
Anonymous said...: Interesting what the banker stated about profiling. I got a call from Amex a few weeks ago asking for my occupation and I wouldn't say. I still have the card with no offer to close.; February 23, 2009 9:56:00 PM EST
TrevorHere said...: Congrats on all the new exposure, CM

Word of it even brought me over to the Huffington Post! :P; February 23, 2009 10:15:00 PM EST
Anonymous said...: I have a Gold Card that I pay a $75 yearly fee as well as a fee each year for the rewards program. I charge from $1,000 - $4000 per month on the card and pay it off monthly. So far I have not received the $300 offer.; February 23, 2009 11:05:00 PM EST
Scott said...: Mish has weighed in on the story too...

[Revised Slogans:

"Don't Leave Home Without It" needs to become "Don't Leave Home With It".

For our Canadian friends, "Ne Partez Pas Sans Elle" needs to become "Ne Partez Pas Avec Elle"

"Lifetime Membership" needs to be changed to "Lifetime Membership Maybe"

"Use The Card. Reap The Rewards" is clearly outdated.

"Cancel The Card; Reap The Rewards" more accurately describes the current state of affairs.

Indeed, "Membership Has Its Privileges", a $300 bonus bonanza to anyone politely asked to leave.]

http://globaleconomicanalysis.blogspot.com/2009/02/cancel-card-reap-rewards.html; February 23, 2009 11:07:00 PM EST
Anonymous said...: I just called AmEx and inquired about the $300 "credit", as well as to see if they'll be willing to take any volunteers for this offer.

While I was told that I'm not eligible, I did come across some additional information.

Apparently what they don't tell you is that YOU (as the customer) will NOT be actually instigating the cc closure. It will be noted as a credit card company closure, which will negatively affect your credit report. (Yips)

I'm not entirely sure of all the details (or if my information is accurate), but it sounded more like your credit report will note it as something similar to a debt settlement with AmEx versus a customer requested closure.

For anyone who does get this offer, you might want to be weary and ask how this will come across in your credit report. Personally I rather have a good credit report (for when I do decide to purchase my first home) than a $300 credit. The $300 won't do me any good if I get turned down for a mortgage or a loan.

Can anyone confirm if the "debt settlement" categorization is correct?; February 23, 2009 11:20:00 PM EST
Anonymous said...: P.S. Great site...; February 23, 2009 11:22:00 PM EST
Anonymous said...: I just received by monthly statement from Amex Blue and they jumped my rate from 7% to 10.25% even though I have been a loyal customer since 1987, excellent record also. I called to find out what had happened, they said everybody's rate was increased and some more than mine. So in order to improve their bottom line, to make up for all the lousy CC holders who received a card if they could show that they could fog a mirror, we, the people who pay on time get to pay for the those who don't. No way Jose, I closed my account within 24 hours, and will NEVER use AMEX again. I also fired off a letter to their VP congratulating her for doing such a great job. What IDIOTS, chase the good customers away. And please tell me how this will stimulate the economy?; February 23, 2009 11:23:00 PM EST
CreditMattersBlog.com said...: Anon, I recently wrote a story about "closed at credit grantor's request." There is no negative event by that happening.

Read this story:

http://www.creditmattersblog.com/2009/02/things-i-see-while-looking-for-credit.html; February 23, 2009 11:23:00 PM EST
CreditMattersBlog.com said...: Anon@11:05pm, you are not likely to get such an offer. You do not carry a balance. This offer is being targeted at those who do have balances.

No worries.; February 23, 2009 11:24:00 PM EST
CreditMattersBlog.com said...: Thanks, Trev.

Thanks for the link, Scott.; February 23, 2009 11:25:00 PM EST
CreditMattersBlog.com said...: Anon@11:22pm, thanks, pal.

Thanks for reading.; February 23, 2009 11:27:00 PM EST
Anonymous said...: CMB - Thanks for the info. I'm glad to hear that it won't affect a credit report negatively.

I'm learning quite a few things on your site and already find myself becoming addicted to reading all the articles and comments.

-Anon 11:20 & 11:22. :-); February 23, 2009 11:38:00 PM EST
Anonymous said...: AMEX IS A PIG COMPANY!!BEWARE OF THEM THEY WILL FIND A WAY TO DESTROY YOU FINANCIALLY LIKE THEY ALMOST DID TO ME !!!BARRY; February 23, 2009 11:43:00 PM EST
The Lion said...: Is anyone *NOT* picking up this story?

I don't think Barry likes Amex....; February 23, 2009 11:49:00 PM EST
Anonymous said...: GET AWAY FROM AMEX IF YOU CAN!!!!THEY WILL HURT YOU FINANCIALLY AND EVEN EMBARRASS YOU BY CALLING YOUR FAMILY MEMBERS AND TELLING THEM YOU REFUSE TO PAY THERE 29 PERCENT INTEREST FEES!!STAY AWAY FROM THEM!!!I IMPLORE YOU; February 23, 2009 11:49:00 PM EST
CreditMattersBlog.com said...: Almost every news outlet has picked this up in one form or another, Lion. Was a crazy day at CreditMattersBlog.com.; February 24, 2009 12:30:00 AM EST
CreditMattersBlog.com said...: Anon@11:22 and 11:20, it's like that. I remember when I first started learning all of the nuances of this stuff. I couldn't get enough. I wanted to know everything.

I've been devouring this kind of stuff for about three years now.; February 24, 2009 12:31:00 AM EST
CreditMattersBlog.com said...: Thanks, Barry. All comments welcome here.; February 24, 2009 12:31:00 AM EST
Jacqueline said...: Great blog. I, too, am having trouble with American Express. I paid my bill in full one week before the due date. They sent a subsequent bill stating that I owe additional finance charges. I've sent several letters to Am Ex but I've not received a response. It's a year later and I'm still fighting. Shame, shame, shame on Am Ex :-(; February 24, 2009 2:46:00 AM EST