AmEx paying card holders to close their accounts

If this isn't a pretty good indicator of whats coming down the pipe i don't know what is. In an effort to stave off the foreseeable onslaught of defaults Am Ex is paying off people to close their accounts.


www.reuters.com...

reply to post by The Great Day


I heard about this today on the radio. Sounds fishy. I wonder why AmEx does not just close the accounts themselves. I am sure they could find a way, not that hard to find a speck of "risk" for many customers.
This has got me thinking!

Well, these 300 bucks are probably for accounts with very high outstanding balances....
I have am AmEx account and nobody offered me money to close it!

could be, but if i was debt laden and faced with a choice of which card to pay of first if any, i think this incentive will work in their favor. I wonder what the competition will come up with as they all scramble to limit loses.

They probably have a huge list of customers who are inconsistent with their payments, late, risky employments etc. They probably cant close these accounts themselves right now but figure if they pay these people off they will save millions in future write offs.

This is for deadbeats and those who are consistently late making payments. It's an incentive to get these losers to pay up before their account goes to collection. These people should never have been extended credit in the first place.

S&F for ya on this. I think this deserves to be on Alternative Breaking News forum actually. *might catch more attention and better warn members.

reply to post by Komodo


your welcome to it if you like, i am a newb and don't know the ropes yet. When i heard it on the radio today i figured for sure i would come home from work and it would be all over ATS. Thanks for the star

[edit on 24-2-2009 by The Great Day]

I saw this at work today and I was hoping that they would pick me and I would get 300 bucks. I get my mail and I find a letter that says you have been selected from AMEX. I was like ohhh sweet they picked me! Then I open it and find out they still want me to get a damn gold card with them. just like all the good programs... I need to not pay my bills to qualify.

Originally posted by stevegmu
This is for deadbeats and those who are consistently late making payments. It's an incentive to get these losers to pay up before their account goes to collection. These people should never have been extended credit in the first place.

You know I've read your posts across these boards this evening, and you sound like a very hostile and irritated person.

Are you even aware of the complete economic collapse that is going on?

Who are these deadbeats who have so much power as to cause this collapse?

Wow... strike up one for the power of deadbeatism...

Originally posted by HunkaHunka

Originally posted by stevegmu
This is for deadbeats and those who are consistently late making payments. It's an incentive to get these losers to pay up before their account goes to collection. These people should never have been extended credit in the first place.

You know I've read your posts across these boards this evening, and you sound like a very hostile and irritated person.

Are you even aware of the complete economic collapse that is going on?

Who are these deadbeats who have so much power as to cause this collapse?

Wow... strike up one for the power of deadbeatism...

Now quite sure how you misunderstood what I wrote as hostile. What else would you call one who doesn't pay his debts?

It is people who decided they needed a new big screen, rather than to pay their bills that are the cause of this economic downturn. When one doesn't pay their bills, others inevitably end up having to cover their irresponsibility.

AmEx doesn't want customers who don't pay their balances, so figured offering them $300 to get current and close their accounts is a good idea.

Star and Flag my friend! This is quite an unusual...perhaps even unprecedeted move by a Credit Card/Banking Company. I have never ever heard of anything similar. So good for you for starting a thread on it.
And...this current economic collapse is not caused by folks buying a new T.V.

The current financial crisis has tenticles from outer space. Outer G20. Outer Federal Reserve. Really, that last comment about folks buying big screen T.V. makes me laugh! If only it was that simple!!!!

Sure enough, there will be an explanation...an unusual one.

Originally posted by burntheships
reply to post by The Great Day

 

I heard about this today on the radio. Sounds fishy. I wonder why AmEx does not just close the accounts themselves. I am sure they could find a way, not that hard to find a speck of "risk" for many customers.
This has got me thinking!

Back when all this economic meltdown started i was trying to speculate what effects there would be and how it would play out and in what order etc etc. Its really what got me interested in ATS and the world of interpreting agendas i never new existed.

One of the first things i thought of is just when is my credit card going to just suddenly stop working induced be the collective puckering of the lenders.

I am sure Am Ex has thought of just sending out notice of suspension, but as the article brings out this is an invite only offer. I think its possible that they are using this softer approach, as a test run. Freezing accounts would have an undesirable affect on a reputable company and would increase the rate of default from unhappy costumers.

But if/when the time comes they will just shut it down.

Fortunately i have very little debt.
And as far as not paying my bills, my family eats first. Thats a no brainer for millions out there that have lost everything including hope.

reply to post by The Great Day



I heard today that they are only going to give the payout if the customer pays the balance off. I will do some more checking. If so, this indicates that AMEX is worried about defaults, and wants to stave off as much of that as possible. They went into the Credit Card Land, (giving the option of not paying off your balance) and now regret it .

so does anyone know someone that has received this offer yet???

Wells Fargo just called and tried to sell me more of there services??????

is there not a credit freeze happening? Weird.

I just got a notice from Capital One. A Change in Terms Notice.

I am being encouraged to pay off my balance so as to not incur the new
Interest Calculation Change.

The new undisclosed interest will be calculated on date of puchase....

I am glad at least they sent me a warning. Do you think they will start to close accounts after balances are paid? Or just hike the rate so much that it would be ridiculous to use it. Is Capital One in trouble.

Originally posted by stevegmu
This is for deadbeats and those who are consistently late making payments. It's an incentive to get these losers to pay up before their account goes to collection. These people should never have been extended credit in the first place.

Wow.

How long do you think all your bills would be paid in full and on time with a 70% pay cut? The unemployment is most states gives you 30% of your normal pay. Are you not aware that thousands of people get laid off basically every week? But your right, their just deadbeat losers and should have never been extended credit in the first place. After all, they just want flat screen TV's right?

For someone on a forum based around problems with the government and corporations... you sure are quick to judge people you don't know in the *exact* same manner as a government official or the CEO of a corporation would.

Your mentality and quick-to-judge attitude entirely based on false assumptions, combined with your obvious lack of compassion and ability to relate with other peoples situations is exactly what's wrong with the world. Get over yourself.