[editor-surveyor]

"Good way to foist your toxic debt on your competitors!"

I don't think you understand. The accounts that they want to close are those that get paid off every month. They make less off of them.

[Richard Kimball]

They've been sending me nasty letters for about six months. They sent me an offer for 1.9% on initial transfers until the balance was paid off. I moved a car loan over there, paid it off with the bank, and make slightly above the minimum every month cause you can get more interest in a savings account and the money's liquid.

Never been late, never missed a payment. They're throwing a fit, though, and each month send me a letter saying they're lowering my credit limit by the amount I paid and that the problem is... well, the problem is they expected me to load more debt on the card at a higher rate and I didn't do it.

[Junior_G]

I don't think you understand. The accounts that they want to close are those that get paid off every month. They make less off of them.

That makes no sense. Yes, they do make less off of the responsible cardowners, but it makes no sense that they would pay them to close their accounts. My American Express balance is at $0 and I don't intend to ever use the card again. By your logic, I should be expecting my offer for a $300 Amex debit card any day now.

What this sounds like is a sad attempt by Amex to settle up with those customers with high balances that they have identified as most likely to default. Those customers were only profitable as long as they continued to struggle to pay the late fees, finance charges, and keep up with the punitive annual percentage rates that these companies giddily levy against those who are in the worst shape to deal with them. When those customers have been bled dry and default outright, they can cost Amex a lot of money.

[Atlas Sneezed]

The accounts that they want to close are those that get paid off every month.

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The article doesn’t say that. It seems to focus on those with balances.

Amex does just fine by taking their 3% of transactions from those who pay off each month, and has nothing to fear in the future from those customers.