Have you been offered an AMEX Bribe?
Here’s a new one: Things in the Economy are now so dire that American Express is offering thousands of its current cardholders a ‘cash incentive’ to close their accounts and pay off their balances in full by April. The bribe is $300.
CNN has more details:
Analysts say the company, confronting soaring default rates on its cards, is trying to limit the damage to its own finances while cutting ahead of rivals in line to be paid back. The default rate on AmEx cards soared to 8.3% in January from 4.7% a year earlier, according to data from the trust that handles the company’s consumer lending receivables.
American Express “appears to be going to great length to reduce its exposure to the unfolding consumer credit downturn,” wrote Bank of America analyst Kenneth Bruce in a report last month. He added that the company is probably targeting “cardholders with sizable outstanding balances and a higher risk of default.”
AmEx hasn’t revealed details of the offer and didn’t respond to requests for comment. But it is an unusual move for a company that has spent years burnishing its image as the credit card issuer of the jet set.
For years the credit card companies shelled out millions of dollars on marketing to get us hooked on plastic, and now they’re spending millions of dollars in a possibly futile attempt to ween us off it. One can’t help but marvel at the irony of it all!
Have you been offered an AMEX Bribe?
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i don’t have an AMEX but i sure would pay it off if i did! i do that every month anyways ;) and speaking of which, did you know there was an AMEX BLACK Card?!! oh man it sounds awesome…
Hey J, good call :) Yep, the black card (also known as the ‘Centurion card’) is pretty cool, but it’ll set you back $2500 a year in annual fees alone!
Check out more info at WP: http://en.wikipedia.org/wiki/Centurion_Card
That is ironic. And funny. And I am happy I never fell into the credit card trap and I would be SO HAPPY if someone paid me to close my cards.
So happy.
[...] 10. Have You Been Offered an Amex Bribe by Master Your Card: Amex is offerring a lot of its card holders money to actually close down their accounts! [...]
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