American Express Crosses a Line Under the Wire
The only thing worse than a shitty economy are the shitty businesses that use a shitty time to gouge the consumer even more than they usually do.
In Jack of All Blog’s crosshairs today is American Express Blue. I’ve been the owner of the funky translucent card since 2001, and overall, I have been a satisfied customer. The interest rate has been competitive, the rewards program fair, and customer service stellar.
Much to my surprise I received a letter in the mail from Amex Blue that looked a bit more important than the usual credit card company junk mail. It stated that despite my 8-year history of paying on time, I would no longer get to enjoy a fixed interest rate. My first reaction was how dare they change the rate of a long-time, low-maintenance customer. But then the next day my wife received the letter. Then my mom. My friends. And so on.
It was nice to know that I was not being singled out, but the costly proposition of a variable rate is too much for this consumer to stomach. But here’s where I went from pissed to incensed…
The first phase of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act passed earlier this year, designed to protect consumers by giving them a longer interest-free grace period, greater advance notice on rate increase and the ability to reject or opt-out of an interest rate increase, went into effect last Thursday. Guess when the American Express letter arrived? Mere days before; right under the wire.
They might have slipped a substantial rate increase in under the wire, but they did something far more damaging – they tarnished their brand name.
Under the guise of a weak economy, Amex is crying that the move is necessary to sustain their profits. Sorry, but I find it hard to feel any sympathy for a business that was able to generate over $340M last quarter alone.
I’m not a ‘variable rate’ kinda guy. So I’ll be paying off my small balance and removing the card from my wallet…permanently. Right now all of the credit card companies are jacking rates up (it’s a sad state of affairs when 12% is a good rate), but it’s only a matter of time until one of the banks figures out a way to lure business away from Blue, and I’ll be the first in line to take them up on their offer.
I wonder how many credit card companies emailed you after this blog?
Great post, it is a shame that these jack off companies do things of that nature.
Sean said this on September 12, 2009 5:54 am