Here’s $300, now go away
Small-town grifter buying off a potential witness? Nope. American Express trying to get rid of customers:
A few years ago, credit card companies were throwing money at people to get them to sign up. Now, as they struggle to contend with a wave of defaults, they may pay you to leave.
At least that’s the case with American Express, which is offering some card members $300 to pay off their remaining balance and close their accounts.
Selected members — the company won’t say how many — received letters with the voluntary offer a couple weeks ago, according to Molly Faust, an American Express spokesperson. Each letter came with an RSVP code that, when submitted online, immediately cancels that member’s card. Members have until the end of April to pay off their balance, after which they will receive a $300 Amex prepaid gift card. If they do not pay off their balance in time, they do not get the gift card and their accounts will still be closed, Ms. Faust said.
I’m assuming “Faust” is in fact the spokesperson’s real name and not a sideways reference to the quality of the bargain.
How many of these folks will come back to Amex when times are better? Yeah, that’s what I thought.
(Via Credit Matters Blog.)
fillyjonk »
23 February 2009 · 12:03 pm
It is kind of awesome that the person discussing this bargain is named Faust, though. (Beelzebub or one of its variants would have been BETTER, but I don’t think those are exactly common surnames).
I can’t say I’ve ever been offered money to “go away,” and if I were, I’d probably be sufficiently insulted that I’d stick around and be as obnoxious as I possibly could.
Tatyana »
23 February 2009 · 12:53 pm
Seems a generous offer, to me. They are not obligated to continue loaning money to people who consistently fail to pay back, do they?
I don’t think AmEx will loose anything if these customers will not feature in return business – they are liability rather than asset.
CGHill »
23 February 2009 · 2:35 pm
If that’s who’s being invited to leave, that’s fine. Anecdotal reports (see the Via link) suggest that it’s a bit broader than that. Of course, they can do whatever they want per their existing agreement.
fillyjonk »
23 February 2009 · 2:56 pm
Yeah, if they’re people who aren’t making minimum payments $300 to go away IS generous.
I had heard, a couple years back, anecdotal reports of some credit card companies dropping folks who (like me) make an effort to pay the things off in full every month if at all possible (I use CCs mainly as a convenience so I don’t need to carry cash. And so I can order Shiny Things off the internet). The argument was, they weren’t generating interest revenues for the companies.
Funny, you don’t hear that complaint any more.
Tatyana »
23 February 2009 · 3:34 pm
I clicked on the original link- nowhere it says the customers they select are chosen randomly; the criteria are not disclosed. As one of the commenters said, she actually wanted out (and to receive $300); she’s a member since 2002. She called and asked if the letter applies to her – they said no. She concludes it’s only for delinquents.
CGHill »
23 February 2009 · 4:04 pm
Which would explain why they didn’t offer it to me, since I’m not delinquent.
fillyjonk »
23 February 2009 · 5:02 pm
Interesting how the new trend seems to be the delinquents get stuff, while the people who at least try to be responsible get stiffed (or worse…)
bert »
23 February 2009 · 6:22 pm
I have been a big fan of Amex forever. It was the first card I ever had. I have also been a merchant that accepted the ridiculous rates and always smiled. Amex today is a company that I can’t even identify with.
They always had the best customer svc. They are about to go under based on a b/model combined with a dismissal of their core values. Their days are numbered with this current offer to existing customers and no one will need the black card when we start bartering again.
Smart Spending Blog - MSN Money »
23 February 2009 · 7:07 pm
AmEx paying cardholders to close accounts…
“The glaring question here is whether the only people who will take advantage of this are the kinds of paying customers AmEx would like to keep for the long run,” wrote Tom Petruno at the Los Angeles Times’ Money & Co…
Mark h »
24 February 2009 · 1:44 pm
I recently had my account closed, which by the way was paid in full and in good standing. I had over 506,000 points in my account that I have painstakenly PAID for over the past 10 years… I was told by CS that once the account is closed that the points were history… Well, apparently I am not alone in my plight (www.my3cents.com) I have asked AMEX to move my points to my Delta FF account. I can only assume they will ignor my plea,, as I am sure they have others… If so, I will champion a class action suit against them, along with anyone else who has been ripped off by yet again, more corporate greed…
mh