This may not be a desperate move, but definitely sent a clear message to cardholders: They no longer appreciate your business. In fact, they will even pay you to leave. As unbelievable as it sounds, that’s what one credit card company is doing now and maybe more issuers will take similar action.
AMEX has just launched a web page to let a small group of selected card members simplify their finance. If they pay off the remaining balance on their cards and close the accounts, they will receive a $300 prepaid card as a reward. The $300 reward sure sounds pretty generous if we only look at the amount being paid (they never paid that much to open a new account before), but the message from American Express is equally loud an clear: Thank you, but your business is no longer wanted!
I have been a AMEX card member for years. In fact, AMEX is the first issuer to approve me a credit card. Though there were some issues with them in the past, my overall experience with them is quite positive. This news, however, is very disturbing. Since the current credit crisis began more than a year ago, we have seen credit card issuers take dramatic measures to protect themselves by sacrificing cardholders’ interests. They have sharply raised interest rates on cards, even those with customers never late in making a payment. They also cut credit limits for those with excellent credit scores. If you a card that has been idle for 2 years, they could just close it first then inform you later.
Now, they will pay you to leave. I’d suggest AMEX to make the offer available to every cardmember, not only those with high balance and low activity, to see how many will hang around with them.
One Comment
I find this so interesting. I wonder if they are targetting “payers” who don’t carry a balance. A very interesting turn of events.