AmEx paying card holders to close their accounts

Reuters ^ | 2009-02-23

[rabscuttle385]

NEW YORK (Reuters) - American Express Co (NYSE:AXP), battered by mounting credit card losses, is offering $300 to a limited number of U.S. card holders who pay off their balances and close their accounts, the company said on Monday.

"We sent the offer out to a select number of card members," said Molly Faust, a company spokeswoman. "We are looking at different ways that we can manage credit risk based on the costumers overall credit profile."

The company did not say how many card holders would receive the offer and did not disclose the total of their card balances.

Card holders have until the end of February to accept the offer and must close their accounts in March or April. Each card holder will receive a $300 pre-paid American Express card.

[SecAmndmt]

“Bye bye, AXP!”

I sure hope not.

[Junior_G]

The news article would have been much more illuminating had they told us the types of balances owed by these people.

[Toddsterpatriot]

Poor April, she claims to have a PhD in economics. When you see her ignorance in her posts, it’s obvious she’s a lying POS.

[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.

[TChris]

Poor April, she claims to have a PhD in economics. When you see her ignorance in her posts, it’s obvious she’s a lying POS.

Yup.

Nobody with logic deficits of that magnitude could earn a PhD.

[An Old Man]

It is like a $20 discount every single month. Of course, I haven't paid them a nickel in interest, but I do appreciate the free cash.

We should form a club! My wife and I do the same thing every month. As Dave Ramsey would say: "We are Debt Free".

[CaliforniaCon]

RE: “Well then they must hate me (although I have not been asked to leave), I have 3 Amex cards, pay all in full every month, usually a day or two after the charge was made.. have had them for years, no buy out offer here.”

*************

I don’t know if Amex likes me or hates me — I’ve had the card for many years and not used it in awhile, but always paid it up upon due date no matter the amount. In other words, I’m a “deadbeat” in the credit card industry as I NEVER have made partial payments (with high interest) on any card.

I have no balance at all now so why would they offer me $300 to close the account when it’s as good as closed at present? I wouldn’t mind getting the $300 for closing it, but my mailbox remains devoid of their “offer” as of today.