Here's the AMEX letter:
Like all companies large and small, our pricing has to be responsive to the business and economic environment. As a result, we have found it necessary to increase rates and fees on some of our products. Below are the principal changes to your account:
o We are changing your APR on purchases from a fixed rate to a variable rate. (Prime Rate plus 11.99% = 15.24%)
o We are raising the APR on cash advances. (Prime Rate plus 21.99% = 25.24%)
o We are raising the APR on any balances that have a penalty rate. (Prime Rate plus 23.99% = 27.24%)
o We are increasing the late fee.
Reader Neil is miffed:
For a company whose stock price has doubled in the last six months and who has paid back its TARP money, this sure seems more like pure greed than any response to market conditions. Either that or they want to sneak some crap in before new regulations kick in. Anyway, since I have been a loyal customer for nine years, I think it may be time to do my own adjustment and bolt them. At least then their short-term shenanigans would result in them losing a long-term profitable customer.
So is Brian:
I have an AMEX Blue card and it's always been my go card because it had a fixed interest rate of 7.9% on all purchases; not the best but it beats most. Earlier this year I got a letter from AMEX stating that due to a "hard economic environment" they were raising everyone's interest rates by 3%. So my fixed 7.9% became my fixed 10.9%. It is no longer my go to card and I was looking into what my best options were to transfer and close out the account, but I was taking my sweet time about it. [Then] I just got a new letter in this week from AMEX... So in short, my AMEX Blue account went from a fixed 7.9% to a fixed 10.9% to a variable 15.24% this year, and at no time was I ever late on a payment or was ever assess a penalty. As you can imagine I'm no longer taking my time and weighing my options and I'm going to transfer my account this week.
Adam can deal with the rate hike, he just doesn't like they're tying his hands:
Just yesterday I got a notice in the mail stating they are raising my APR by 5% (applies to existing balance and new purchases) and was curious that no where on this notice does it mention the ability to opt-out. I did a Google search on this topic and was surprised to learn that the option to opt-out is a just privilege, one awarded by many credit card companies, but not American Express. A call and email to customer service confirmed this....I shouldn't have any problem financially with this rate hike, but the prospect of future changes and not having any options at all doesn't sit well with me.
The letter they sent also notifies customers that the card is dropping overlimit fees. As we previously reported, AMEX is dropping overlimit fees because it's too expensive to get everyone's permission for them, a requirement of the new CARD act. Tying the rate increase to the fees getting dropped is in line with the credit card companies moaning, "We will have to make up our ill-gotten gains somewhere!" in response to the consumer protections initiated by recent credit card reform.
PREVIOUSLY: AmEx, Discover Ditch Overlimit Fees
(Photo: www.samwilkinson.org)
When I called, they told me that being even one day late on a single payment jacks your interest to this figure, which will rise if prime rises. If you want to quit, fine. If you have a balance you can't pay in full, they own you.
This is usury, plain and simple. Those rats have us over a barrel and now their ramming it to us. So much for twenty years of customer loyalty.
I encourage anyone reading this to dump AMEX immediately, and to give your Congressional reps hell until they re-regulate the credit industry.
]]>I have wrote to the CEO's office stating how disappointed I am with their decision to retaliate on their good customers big and small raising the rates 5% in a bad economy. I said this decision is not going to help me with corporate goodwill to your organization where if I end up with a full time job after this recession I will not likely consider a Gold Card or any other product your company has.
I could understand them trying to recover revenue from over the limit fees, but at least make the balances prior to Oct 1 fixed at the old rate, and new charges at the new rate.
People have talked to customer service representatives and AMEX is not going to budge. I was offered the invitation to call the office number and I will probably get the same answer from the executive office. offoffiofficeas well.
]]>I think I will Youtube Amex Blue card with chip versus Microwave Oven.
]]>@Sam2k: Zzzzzzzzzzzzz
]]>I've got the same letter and same response about not being able to decline the changes and close the account. We have a balance transfer that we were paying down (not using the card for purchases) and were told that this balance would increase to the new variable rate also. The kicker was the other piece of mail asking us to use them as our bank and deposit money with them - ha - not very likely now. We'll be paying the balance and closing the account.
]]>There is no "right" to opt out.
]]>Just got a similar letter for the JetBlue AmEx card I have. Interest rate on cash advances only and late fees up, no more OTL fee. Looks like even top tier members (my credit score is in the 790s) are getting hit.
]]>By the way, it appears that Bernie "Ponzi King" Madoff used his Amex to spend all his stolen money. Maybe they should be hauled into court as an accessory to the crime, serving as a pass-through entity for stolen funds. Sounds like a nicely laid out RICO prosecution is in order. Heck, with all the coin their collecting from us, it would be poetic justice if the Madoff victims went after Amex. I could live with my extra interest going to heal the charities that got shafted instead of to boob jobs for Amex executive's prissy, entitled bimbo daughters.
]]>Also received two letters one for me and one for my wife. Again we are customers who have never been late we also pain of the balance each month. Technically although this doesn't effect us I still dislike the position they have taken and will be making more carefuly8 comparisons with other available cards. Hope this burns them for there greed.
]]>I was trying to think of someone both big and good. Can you name one big business that hasn't checked out from the human race?
]]>I used to love my BlueCash from Amex. Then I got that dastardly letter. Guess what. I still love my Amex. Can anybody guess why? Becaue I don't put anything on it that I can't afford to pay cash for. Credit cards should only be used for purchase protection and rewards.
If you rely on credit cards to finance your lifestyle, how can you compain about them financing their lifestyle on you?
]]>Write a letter to your member of Congress. Yes, they may be generally useless but, if enough people scream about AMEX's complete disregard for principles of Contract Law, then maybe we'll get somewhere. Imagine if anyone could arbitrarily and unilaterally change the terms of a contract while the other party has no recourse? It's wrong, especially for the Welfare Queens in corporate Amerika. At the very least, we should be allowed to decline the terms and operate under the previous terms until our card expiration date. The problem is that credit card vampires know they have us over a barrel: If you negotiate a reduced payoff, the IRS is standing by to tax your forgiven debt and the credit agencies are ready to blemish your credit report for the next decade. I didn't use my card to buy big screen televisions or luxury items but in trying to reach the American dream of owning your own company. These same companies collapsed the economy, taking my business with it, yet the big, corrupt players got their neat little corporate welfare check. While we can't burn it all down, we can at least get our elected officials to singe them a bit.
]]>I'm gonna miss ya!
Time to cash in the points, pay off the balance and toss old Blue in the drawer.
Oh, and don't forget to change the automatic payments for your monthly subscriptions to something else too.
]]>Don't like it? Don't carry a balance, don't use that card, cancel the card. Find another card.
If you're somebody that can't live within your means and need to carry a balance, you might want to consider getting a card at a credit union.
]]>I have an Amex Blue - that will now never carry a balance or be used in such a way that it won't be paid in full monthly. THIS is the only reasonable response - don't cancel it unless you want to negatively impact your credit rating.
I WILL voice my displeasure next time I need to contact Am Ex.
]]>i just got the same letter for my AE costco card, paid off balance today, waiting on my next rewards check than i will cancel card.
I think many costco members are going to be upsetabout this.
Still llving my credit union plat visa.. less than 9% , free cash adances if i ever need it, and great service.
]]>I just hope people understand that when the fed eggheads think the recession is over they are going to jack the rate and therefore your rate is going to jump like a madman (it's at 3.25% as I understand it). At some point for some customers it's going to equate to usury.
]]>"Citi's new charge, which kicks in if a cardholder does not spend enough, is one of many different annual fee experiments that industry members anticipate in the next six months."
]]>I'm thankful I live in a state that caps everything at 24.99, even the payday loan people. On the flip side, I'm pissed that I live in a state that only caps things at 24.99, like buy here-pay here car lots. Try being 18 and having ZERO credit, needing to buy a car, and having no-one to co-sign for a loan. HELLO car rip-off land.
]]>I got the same letter too for the blue card, yet these are the same morons that give me the preferred customer BS and sales job on the AMEX Gold card every 6 months like clockwork.
I use it for one purpose - to hide a few small purchases from my wife e.g. presents for her. The statement comes by e-mail and I can pay via electronic payment from my checking account. She sees the payment on the bank statement, but she's never asked what its for.
If anyone knows of a better card that has these features, post it here
]]>Companies aren't just going to settle for a few percent less in profit. They will jack up anything to preserve their profits. In health care a public option will prevent companies from gouging and it would drive people to the public option.
]]>I checked my letter again and the purchase APR hasn't budged on my Blue Cash card. It will still remain at 7.24%. Not like it mattered anyways. I don't carry a balance.
]]>Got the letter and no mention of rate increase. Checked my new statement that just came in, prompted by this story, and they raised it 3% without any mention via email or in that letter. This is crazy, 4 years with this card and they don't even tell me.
]]>So I told my girlfriend to charge one small item on it a month like cash and each month we would pay it. So now we received this same notice that they were raising the interest rate. Do you get the feeling they are trying to tell us something?
]]>Amex has gone from being the credit card company that cares about its customers to being the company that is inventing new ways to screw them.
I think it comes from their internal push to find new ways to analyze their customer's data and habits. They were using this new skill to reduce risk. Now they appear to be using it to find ways to make the most money for the company, but they are burning customer good will in the process.
But hey, there is no longer any perceived value in being the friendly card company that stands behind it's cardholders. A credit card is a credit card is a credit card. Amex figures they only have to be as nice as the lowest scum card company. If we don't like it, we can just leave.
]]>The cancellation process was interesting. You almost have to talk them into it, but they didn't change anything for my leaving :)
]]>@MostlyHarmless: A fond memory of the 70's
]]>@katstermonster: Now thats a power rant blew it out the box.
]]>STEP 2: Deposit this check into your bank account.
STEP 3: Withdrawal your full bank account balance and close the account.
STEP 4: Keep forgetting to pay your credit card bills.
Within a few short months, credit card companies will cease to exist.
]]>I'm probably going to cancel my card if I can find a better one, anyone got any recommendations?
]]>@acasto: +1 for analogy.
]]>If we are in fact bad Amex customers, Amex would start charging a fee to those that pay off their bill every month.
]]>Remember to thank your CongressCritters for these changes. They're the ones who put the screws to the banks, so the banks are just passing it along.
]]>I like having an AMEX, it's the card I trust the most to keep my data secure and block any purchases that seem out of character for me. It's also my emergency card because of the high limit. I don't want to pay through the nose if I have to use it in extreme circumstances.
Luckily my bank had an offer for a USAA AMEX back at a respectable 7.75%. USAA prevents them from changing the APR w/out their approval.
]]>I got angry at BofA, so I got an Amex blue and I won't use my BofA card anymore. But closing it, just saves them money and you lose a backup card in case of an emergency.
]]>"You want the house?, sign the paper..."
]]>"they can do anything at any time for any reason"
That is, until the new credit card act goes into effect next year.
]]>I just left Bank Of America for Amex Blue. I have only had the card for 2 weeks. You'd think they would respect their advertised rate they provided on their application for more than a couple of weeks.
Doesn't really matter to me though, since I don't keep a balance. But it just goes to show that they can do anything at any time for any reason. I would suggest keeping a couple of backups for this sort of shenanigans.
]]>I don't carry balances, nor a personal AMEX. ;-)
]]>@MostlyHarmless: A dude carrying a lute or a luge.
]]>My balance is high and my APR is 10.24% also. Odd?
]]>I MAKE MY OWN CREDIT CARDS AT HOME!
]]>Go and complain at the above Web site and tell them that they have not given you the right to opt out.
]]>I, for one, who carries a balance have pledges to bring balance to zero, ahead of October 1. They will lose me as a customer. Adios...
]]>@eddieck: A contract is a mutually beneficial agreement between two parties? That's the theory they teach in law school Contracts classes. In practice, almost every contract the average person will ever sign is a contract of adhesion, i.e.: a corporation writes it, you can take it or leave it and negotiating terms is not an option.
You can be guaranteed that the credit card agreement says the issuer can change any of the terms, at any time, for any reason...as the law allows.
]]>@pecan 3.14159265: *|LUDE_COMMENT_ABOUT_POPPING_OUT_OF_THE_BOX|*
]]>Ah well, more encouragement to try to get it paid off asap
]]>@rkaufman:
Why cancel? Why not just keep the card and not use it. Cancelling will (certainly) increase your utilization % (bad for your credit score, and (possibly) shorten the average account age (also bad for the credit score).
]]>@eddieck:
Here's the thing - borrowing on a credit card is essentially a series of monthly loans that the credit card company keeps letting you roll over. They could, for example, tell you with 30 days notice that they want it all paid back.
]]>Can you please provide a link to this provision.
]]>@morlo:
While they've generally allowed this in the past, they don't actually HAVE to allow it, since, in reality, every month is essentially a new loan, so they can change the terms on you.
]]>So, its doesn't matter what kind of history you have with them. They're going to jack it up before the new regs go on line.
]]>If they really aren't willing to play ball, I'm happy they lost me as a customer--but I hope it doesn't hurt my credit score.
]]>Definitely cash advance - I thought it was all of them though. I'll have to look when I get home. I didn't pay much attention since I never carry a balance.
]]>All I know is once I recently considered giving AMEX some interest income, but now it's going straight to the front of the queue. Discover's getting that money instead.
]]>Funny how they never bothered to make any mention of that on the actual website or in my profile, just burried in the PDF that I'd have no reason to read month to month as all my payment/billing information is on the payment page.
]]>Don't pay them. I'll take the credit hit and the collection calls rather than paying them for this. If they're doing this, then they don't deserve the money. That's the only way to really show them - hit them in the pocketbook.
]]>I got a similar letter in the mail yesterday. Since I never use my BLUE card and have no balance I called them up and closed the account.
]]>@katstermonster: Hahahaha. That was so long it popped out of the dialogue box.
]]>I am the defender of all who rant.
]]>@valleyval: Mine's going up as well in October. This month will be the first time I have carried a balance on a >0% interest card in about 8 years (because of a wedding). By next month it will be paid off and this change is meaningless to me.
The 1.5%/5% cash back after $6500 spent is still one of the best rewards of ANY card out there.
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@Telekinesis123: Ummm you must be new around here. Sarcasm and jokes...look them up.
]]>Even though I pay off my balance every month, I'll still be checking my statements after Oct 1 to see how much has actually changed.
]]>Anyway, I am stuck with the hike since I used it to consolidate the debt that my ex-wife incurred while we were married and I still owe a large sum of money that I cannot pay off in a lump sum.
I have been a customer since blue was introduced, never had a late payment and only underpaid one bill by 5 dollars once 3 or 4 years ago due to an error in typing.
I used to love Amex, but after this fiasco I am going to dump as much money into paying it off and canceling as soon as humanly possible.
I also have an excellent credit rating.
]]>These rates don't matter if you pay your bill in full each month, right?
]]>I got the same letter, and am one of the "never been late, never over limit, never a black mark against me" people.
Luckily, I'll have any balance on the card paid off before then.
]]>@StanTheManDean: But the time it takes for some people to pay off the card means they'll be saddled with the new rates for a while before they get to no balance.
]]>I think AMEX is going to lose a lot of good customers with this...and it's well deserved.
]]>@Telekinesis123: It was totally a joke, but in every credit card thread all of these things appear. It's just how we express ourselves. With bitterness, anger, and just a little rage thrown in.
]]>I have a limited amount of ire to give, and it's used up on things other than this. I mean, I can see why people are pissed, it's just too far down the list for me to spend any energy on it.
]]>Hah! Cancelled last year, beat them to it.
]]>I too got a letter saying that rates on past due or cash advance/penalty rates are going up, but nothing about my actual rate going up as well.
My rate is at 10.24% as of right now. I'm assuming they're raising people's rates who carry a balance, I usually pay the card off every month, and have zero balance.
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]]>Its just my small little stand. Hopefully others are doing the same (assuming they can).
]]>Having done nothing wrong I feel like I'm being punished. I'd hate to cancel what was the best card I've ever had but I feel I need to now out of principal/spite.
]]>I got that letter too, and it won't effect me in the least since I don't carry balances or pull cash advances on this account AND my payments are never late.
Matter of fact, I just got my Blue Cash annual cash back posted to my account and it's over $500 this year!
]]>@acasto: You, sir, earn a salute. That was the best simile I've read all day.
]]>Thanks for saying people are stupid and have nothing to say.
]]>What do you mean by "they won't let you leave"?
Just pay off the card and cancel the sucker.
]]>*|CONDESCENDING|*
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and
*|STEREOTYPING|*
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Just got something like that in the mail too. Fortunately for them I am on a purchasing freeze.
]]>@MostlyHarmless: How about:
*|ANGRY|*
Wouldn't that sum up about 98% of the posts here?
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Thats more like it.
]]>FYI, I got the same letter re: my AMEX Clear card.
Anyway, you can moan about it as much as you want, but pretty much every credit card company has sent out letters like this -- it's not like you can take your business elsewhere. All you can do is work towards reducing your credit card debt to $0.
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I think I just covered the information in about..oh..10 future posts.
]]>Gee thanks AmEx, you're really sticking your neck out for us.
]]>