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AmEx to Clients: Here's $300, Now Get Lost

Credit card firm looks to limit exposure

By Nick McMaster, Newser Staff

Posted Feb 23, 2009 5:12 PM CST

(Newser) – American Express is offering some of its customers $300 to pay their balance and close their accounts, Reuters reports. The firm has been hit with staggering losses, exacerbated by their expansion in recent years to less well-heeled customers. American Express declined to say how many customers had received the buyout offer or what their card balances were.

[Images (4)]

[Quotes (1)]

In this Jan. 22, 2007 file photo, an American Express card welcome sign is seen above all others at McGerks Pub & Grill in Baltimore. (AP Photo/Chris Gardner, file)

A sign showing the American Express logo is seen outside a restaurant November 11, 2008 in Des Plaines, Illinois. (Getty Images)

A pedestrian walks by the American Express building October 30, 2008, in New York City. (Getty Images)

The American Express logo. (American Express)

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We sent the offer out to a select number of card members. We are looking at different ways that we can manage credit risk based on the costumer's overall credit profile.
- Molly Faust, AmEx

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COMMENTS

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Showing 3 of 4 comments

Toon

Feb 24, 2009 12:52 AM CST

Willing to bet most of the people bought off tended to not carry lrge balences but had resently been laid off.

Newser001

Feb 23, 2009 9:10 PM CST

So the general public has a better understanding of Amex and its practices... They have ruined many a people's credit by chasing balances by consistently reporting new credit line limits (at no fault of the client). This in turn makes the card holder appear to credit agencies as intentionally 'maxed' out... Horrid practice - Bordering on malice unquestionably resulting in damage, harm... I won't do business with them - Credit cards, Insurance, annuities, etc... They're extremely callous and reckless in the manner they do business...

PhillytoWinnetka

Feb 23, 2009 7:58 PM CST

Looks like Amex is going to have an "opening" in it's media relations department soon:)

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AmEx to Clients: Here's $300, Now Get Lost