American Express Punishes Its Customers

Posted by leet60 on 2013-02-12:

Your experience is not uncommon with the recent changes in the credit card industry. Companies rarely, if ever, provide exceptions for long term, loyal customers - they simply believe that your account is easily replaced with a new customer. As long term, existing customers often have preferred rates; replacing the account that you close due to dissatisfaction with a new customer at a higher rate is more profitable.

Posted by frak on 2013-02-12:

Didn't AE send you a letter explaining how your rate went up because you were late with your last payment, but if you aid on time for the next six months, your rate will be restored?

That's what they typically do with good customers, and that seems pretty fair to me. Kind of like a cop issuing a warning rather than a ticket.

Posted by trmn8r on 2013-02-12:

My guess is that a customer who carries a balance AND pays late, in this environment, is seen as a high risk. If you didn't carry balance, they might be more willing to forgive a late. But not repetitively. A lot of banks these days grant you one exception, and they keep a log. You come back a second time, even years later, and it's no-go.

I look at the interest alone in a different light. 11.99% interest is insanely high. 27.99% is also, but the base rate is. Thus, I would not pay either of these rates or anything in between. I use my card heavily, but always pay it off.

Posted by Churro on 2013-02-12:

I've never seen the appeal of an American Express card. I find Visa and MasterCard offerings to be far superior and definitely more widely accepted. I could be missing something but I've never had an itch that American Express could scratch. You did the right thing canceling your account. You'll have no problem finding a replacement.