American Express paying card holders to close their accounts

[FrankRep]

AmEx paying card holders to close their accounts

February 23, 2009

NEW YORK (Reuters) - American Express Co (NYSE:AXP - News), 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.
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http://finance.yahoo.com/news/AmEx-p...-14442536.html

[constitutional]

Looks like they are expecting the economy to worsen. What a surprise.

[Josh_LA]

credit card companies are supposed to have the LEAST to lose after they can add interest over and over on it.

[Liberty Rebellion]

Guess the people they are making this offer to are missing payments or something. AmEx keeps sending me offers for a card. Just got one last Thursday as a matter of fact.

[JordanL]

credit card companies are supposed to have the LEAST to lose after they can add interest over and over on it.

But credit cards are unsecured credit, making them more risky.

[HenryKnoxFineBooks]

Maybe they dont want certain cardholders to run up $200,000 in a month and split (or buy $200,000 worth of gold, guns , and ammo)