American Express Membership Rewards - bombshell - WSJ LOC revelations

http://74.125.95.132/search?q=cache:KkJ7zj51SYUJ:online.wsj.com/article/SB123595172956305055.html%3Fmod%3Drss_whats_news_u s+Bruised+AmEx+Returns+to+Roots&cd=1&hl=en&ct=clnk&gl=us&client=firefox-a

Last summer, the company began reducing credit lines for people who live in states hardest hit by the housing slump even if they hadn't shown any signs of being in financial distress. AmEx also began reducing credit lines or canceling the cards of people who worked in industries that are among the most vulnerable to the financial crisis, such as financial services and real estate.

In October, AmEx infuriated thousands of customers by reducing their credit limits based on where they shopped and the lenders that held their mortgages. The reason: Other AmEx customers who frequented the same companies were having trouble making payments on their cards, according to the company.

sheer insanity... :eek:

The gist of it = they borrowed TARP funds designated to make credit available for more Americans. Subsequently, they have continued to cut credit to all classes of customers. Finally, they use every type of profiling known, legal and illegal, to cut credit and redline areas.

I like my Amex card. The company is not in my good graces. And, I sold all of my stock because I'm not sure they'll be here in 2010.

Neither of these revelations are new as best as I can tell.

This is old news and has been discussed extensively in this forum. Why the new thread?

And, I sold all of my stock because I'm not sure they'll be here in 2010.

I agree.

This is old news and has been discussed extensively in this forum. Why the new thread?

I agree.

Subsequently, they have continued to cut credit to all classes of customers. There's an entire class of customers they haven't cut credit to ... the customers they haven't cut credit to (that would include myself, for example).
And, I sold all of my stock because I'm not sure they'll be here in 2010.I would estimate the chances of American Express not existing any time soon as little to none. They may not be an independent company, but that's not necessarily a reflection of good or bad times (there are plenty of mergers either way in the financial industry).

I thought I was in the group seeing no credit limit cut. Then I paid down part of a balance I was carrying. The next day the credit limit showing on the web site was cut. However, after making a large charge to the account the credit limit popped way back up again. Strange.

all 4 of these factors were discussed here? if so, the article is at least a confirmation, and gave a voice to the negative reaction.

- "live in states hardest hit by the housing slump"
- "worked in industries that are among the most vulnerable to the financial crisis"
- "where they shopped"
- "lenders that held their mortgages"

im glad/lucky shopping is the only factor that might apply to me.

I think Amex will be around after 2010. It a decently run company. However I think there strategy around credit line cuts and FR are to short sided as to many folks are cut in the cross fire.

Amex should have never flooded folks with to much credit. Its funny how they were eager to grant generous credit lines yet they do a FR a year later and this was before the economic bust.