Skip to comments.American Express CEO: Card law may reduce credit
Posted on 05/20/2009 2:07:20 PM PDT by Oldeconomybuyer
NEW YORK, May 20 (Reuters) - American Express Co (AXP.N) Chief Executive Kenneth Chenault said a new law that would impose sweeping limits on credit card issuers will likely hurt his company and reduce the flow of credit to consumers.
Chenault said the legislation will be "more negative than positive" for American Express, because it will make it more difficult for the credit card and travel services company to set rates based on the risk its customers pose.
Chenault said: "My concern is from the standpoint of credit being available, to particularly consumers who need it."
(Excerpt) Read more at reuters.com ...
What an ass-hat.
This is the guy who runs the company that has been lowering the limits on their cards for good customers with solid credit to the point that many of us have told him to take his plastic and shove it where the sun don’t shine.
I never could see the point of having an AM-Ex card, though I did for a few years.
reduce the flow of credit to consumers
consumers should deleverage on their own volition. But a little push wouldn’t hurt
We are in a credit crisis. after all you can’t borrow yourself out of debt.
Yep....AMX is a debit card for stupid people.....:o)
Haves paying for have-nots.Credit card socialism.
The credit card issuers are pissed because they can't arbitrarily lower the lines of their customers to $100 beneath the current balance as an excuse to default them and hit them with punitive fees. [And yes, that can happen to you even if you're a good customer who pays on time.]
In 2002 I refinanced my mortgage. While setting up the automatic payment I was late with the first month. My credit was/is pristine. Two months later American Express increased my interest rate from 11% to 27%. When I asked them why they used my late mortgage payment as the trigger. I closed the account and will now only use credit cards from a Federal Credit Union. 9.3% interest and the rate never changes.
Can’t stand AMEX, but the guy is right. So are you.
It is intentional, the Left ruins economies. At least that is the historical record every time they try, maybe they’ll get communism right this time?
This comes from a CEO with a bloated salary, numerous perks and an ego that pairs with his arrogance. These Credit card companies screw the customers without batting an eye and then whine whenever they get caught.
Rabscuttle, let’s see the evidence. I call habeas corpus on that one!
Gotta pay for that company spokeslesbian who does their commercials somehow.
What a great idea. Everybody loves Ellen DeGenerate.< /sarcasm >
Amex charge cards don't have preset limits.
If what I heard on Rush about the new rules coming for those who pay their balances off every month, I will cancel my 2 credit cards and start paying by cash and check again.
Hitler Jr. and his Gestapo Administration and Gestapo Congress are destroying our country and our future and our way of life. Anyone out there care enough to organize an opposition??? Leaders with goands and a spine wanted immediately. Anyone have some suggestions other than Cheney?
Still doesn’t mean he is wrong...What is the natural reaction to price controls? Artificial limitation of fees and rates is, by any definition, a price control. The market response will be a scarcity of that product. Credit card companies will clamp down on who they issue cards to cutting off the riskier clients. That will slow economic growth.
“Amex charge cards don’t have preset limits. “
At least the green card doesn’t. I have liked mine over the years and it was a pretty good tool for giving me discipline with regards to credit cards generally. If they ever get rid of the green card as they have threatened, I would probably just go with my debit card from here on out.
Wasn’t one of the purposes of the bailouts to increase the flow of credit to the consumer? I wonder how much Amex received.
What new rules??????
BooHoo, there’s 700 MILLION cards out here. Deal with it!
That was the publicly stated lie. The banks appear to be hoarding the cash, not lending it.
Obama should have just deposited $10 million in my account. I’d show him spending!
Yes they do. They just don't tell you about it in advance. They will make the merchant call in for authorization when you are close to the (unknown to you) credit limit.
“Obama should have just deposited $10 million in my account. Id show him spending!”
You do have a point. For all the complaining that supply side doesn’t work and big business is evil, so far all the gov money has gone to those top big businesses, at least that which was not given to useless state and local governments.
Go with a local credit card from your bank or credit union. Citibank, BoA, Amex, Discover are all rip-offs.
RE: “If what I heard on Rush about the new rules coming for those who pay their balances off every month, I will cancel my 2 credit cards and start paying by cash and check again”
Me too — I’ve heard and read about this for some time, not just in past couple of days. We who always paid on time (within the grace period) and in full used to be known as deadbeats. Then we were led to believe we were the cream of the crop credit card holders. And now we will be the unlucky ones to pay for the misdeeds of others who abuse their credit. Nope, that little scheme won’t work. I’m with you and will use cash and checks if this comes to pass.
Some cards have limits; I agree, but they are not preset—they depend on your spending history with the company.
I travel fairly frequently and I put a lot of expenses on my Amex, and I’ve charged a lot of expensive stuff. I’ve never heard peep one from Amex.
All credit cards suck. It is a money making scam for banks. Yes a scam. Don’t use them if at all possible, and pay them off ASAP if you do use them. You read the fine print, and you know what you are getting into. But it isn’t until you feel the pain that it really sinks in.
Typical liberal hypocrisy!
I’ll give you my personal experience with AMEX. I got a 2.9% on a balance transfer, good until the debt is paid off. When I didn’t make any additional charges, they started sending me nasty letters (yeah, I’ve made all the payments on time.) This month, the bill arrived on the 19th, due on the 25th and payments that arrive after noon are processed the next business day. Since Monday is Memorial Day, that means I had three business days from receipt of the bill to get the payment posted to my account, OR bill goes to prime+15%. I have all my payments made electronically, so it was already paid, but that’s exactly the kind of cr@p the CC card companies are pulling now.
RE: “Amex charge cards don’t have preset limits.”
“Yes they do. They just don’t tell you about it in advance. They will make the merchant call in for authorization when you are close to the (unknown to you) credit limit”
I was told many years ago by AMEX that my ‘limit’ was NO limit on my (then) Gold card. Any actual limit would be determined by my ability to pay in full each month during the grace period. If I charged a lot and did not pay during grace period, there would then be a ‘limit.’
So get a different card. However, his point is reasonable - if you have less ability to charge based on creditworthiness, the good credit folks will be hurt to pay for those with bad credit.
BTW - I cut up my AmEx card over 20 years ago.
No other options available at the moment, sorry. ;)
My cc accepts payments day of without penalty.
Just curious how much longer until you pay it off?
What did they say in the letters?
But how will you reserve hotels or buy airline tickets over the phone? How will you buy things on line?
It’s not that easy to completely dispense with credit cards.
This will be a total disaster.
The current series of economic blunders, which started in early 2008, will make the series committed by Hoover and FDR look good in comparison.
Just replace the words Credit Card issuers with “Drug Cartels” and credit with “cocaine/marijuana” in this article.
Oh no....they put the FACTS in the fine print of the card agreement when you get it in lawyerese . The terms ya have to read under a microscope. It’s our fault we didn’t go to law school and study contract law .......:o)
I keep a combination debit master card and a debit visa card my bank issues. I buy fuel and dinners on the debit parts of the card. Charge one or two things a month to keep the card oiled. Low rate from my local bank .
More of a emergency funds card if I have mechanical trouble etc on road trips.
“I never could see the point of having an AM-Ex card, though I did for a few years.”
I have used my AmEx card for 27 years. I find it very valuable in me not having to carry excess cash or those stupid travelers checks. My business buys virtually everything only from other companies that accept my AmEex card. I have paid my taxes via my AmEx card. I truly wouldn’t know what to do if I left home without one. At the end of the month I send my AmEx statement to my accountant who loves to have my expenses all grouped and ready to go.
BUT I won’t accept the AmEx card at my business. Their participating merchant fees are much too expensive
My dad got hacked off at Sears one time, paid off all his bill except for a penny. They spent two years trying to collect that penny from him. This is the first time I've ever had a CC company get nasty with me, and it's surprising, because I thought they only got nasty if you got behind. AMEX has gotten really nasty because I HAVEN'T gotten behind or done something that will let them jack up the rate.
“Cant stand AMEX”
Good to know. Never found the AMEX card to be impressive. I would never use them, ever.
a) Raise rates for all borrowers to cover the likely defaults b) Grant less credit to the likely defaults c something else?
ya think? besides, I wouldn’t own an American Express if you paid............they sock
They lied to me once. That was enough. I’ll never go back.
>>>> the new rules coming for those who pay their balances off every month <<<<
Just curious, what are those new rules?
They screw customers? No one forces you or anyone else use their service, do they? If you don’t like their “bloated salary, numerous perks, and an ego that pairs with his arrogance”, don’t!!! BTW, your jealousy and junior high attitude is really pathetic.
Exactly... I've been a 'cardholder since 87', never ever late and 70% of the time I paid more than the amount due. Still they cut my limit, no reason. Not one more penny for them.
I’ve seen that with one of my cards, they randomly change the due dates, presumably to catch the unwary off guard.
I always pay two weeks in advance and electronically, so it’s kind of ineffective.
How do you figure? My wife and I went to Mazatlan last winter for free on the points we earned on my Amex card.