Join Early Retirement Today
Thread Tools Search this Thread Display Modes
So what does AMEX know?
Old 02-27-2009, 06:57 PM   #1
Full time employment: Posting here.
Join Date: Sep 2004
Posts: 607
So what does AMEX know?

I'm sure most have heard about AMEX offer to certain card holders who hold a balance: They'll give you $300 if you pay off the balance and close the account.

American Express' $300 Deal Shows Industry Trend : NPR

This seems to be a smart, proactive move considering $300 is a relatively small amount to remove card holders who they consider a high risk of default.

What I find interesting however is they have a similar offer to AMEX Business card holders. It looks like they have offered to refund large portions of the interest that has already been paid by the card holder provided they pay off the card. Some people on the net have received offers of refunds in the thousands.

This is a little troubling. It seems to indicate that AMEX thinks things will REALLY hit the fan very soon so they want to clear the books. The $300 offer seems to be a good idea for them, but when they start giving back interest payments in the thousands.

WanderALot is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-28-2009, 03:37 AM   #2
Full time employment: Posting here.
Join Date: Oct 2007
Location: New York
Posts: 898
Seems odd to me. I would imagine they'd have a huge adverse selection problem.

Money's just something you need in case you don't die tomorrow.
Maurice is offline   Reply With Quote
Old 02-28-2009, 09:00 AM   #3
ziggy29's Avatar
Join Date: Oct 2005
Location: Texas
Posts: 15,419
Well, I look at it this way: Let's say you "invested" $10,000 in some entity that had no collateral or equivalent to FDIC insurance.

And let's say you're hearing a lot of reports and seeing data that suggest the entity where you deposited said $10,000 is getting weaker and weaker, and if they go under, you lose everything.

You CAN pull your money out now, but there's a $300 "early withdrawal penalty," sort of like a 3% surrender charge.

Do you eat the $300 fee to ensure the safety of the rest of your money? Or do you stick it out and hope for the best, knowing you could lose it all?
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote
Old 02-28-2009, 12:27 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,664
If I had an AMEX card and they offered me $300, I'd take the deal in a heartbeat. It's not like I only have one CC and AMEX is somehow unique in it's services.
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
It is catching: AMEX Now Rewarding Irresponsibility samclem FIRE Related Political Topics 15 03-02-2009 09:10 AM
Amex Gold Card JohnDoe Other topics 16 12-21-2007 03:40 PM


All times are GMT -6. The time now is 11:38 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.