American Express Blue – Raising all Interest Rates Even Old Balances – Jacking Consumers Around Again
August 14th, 2009. Published under Fraud. No Comments.
American Express Centurion Bank (AMEX) is really sticking it hard to American Express Blue card holders (every single one of them). There is nothing card holders can do about it either, you are at American Express’ mercy and they aren’t having any of that. Standard APR is going from fixed rate 11.99% to Prime Rate plus 11.99%. Rate as of Aug 1, 15.24% (this is applies to new purchases AND ALL BALANCES PREVIOUS) (aka variable interest rate) APR for Cash Advances will be 21.99% plus prime. APR for Late Payment will be 23.99% plus prime. Late fees for less than $250 will be $19, greater than $39. Read the full story on the Consumerist What do you want to bet that eventually all American Express card holder are going to have their interest rates and penalties jacked up. Well the cards that allow you to carry a balance that is. While this arbitrary tactic may boost American Expresses profits for a short while, what it will ultimately do is cause consumers to use credit less, especially if other credit card issuers do that same. Imagine if consumers that used credit cards, stopped using them and went back to using cash. The entire credit card industry would go into turmoil and the consumer would end up with the upper hand. My wife and I weaned ourselves off of credit cards about three years ago and haven’t had any problems with making purchases (we just make wiser choices now). No interest rate increases, no late fees and no sudden arbitrary fees at the whim of a credit card company. Yep it’s nice not to have financial crutches called credit cards. I like to call it financial freedom. My best advice: Cut up those American Express cards and do whatever you have to do to pay off the balance in a hurry, get out from under American Express debt. On top of that (This Just in News 9/14/2009) via the Associated Press Do you have an American Express Credit Card? Chances are your identity was just stolen. Amex cardholders’ data stolen by employee PS: Hey, Martin Rabinowitz ( martin.rabinowitz@aexp.com ) the Vice President of Credit Administration at American Express. Remember me? UP YOURS and AMEX’s and then some.