American Express CEO: Card law may reduce credit

Reuters ^ | May 20, 2009 | by Jonathan Stempel

[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."

[Oldeconomybuyer]

Tight consumer credit in a recession? I wonder if the unintended consequences of this bill are intentional.

[BlueNgold]

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.

[Paladin2]

I never could see the point of having an AM-Ex card, though I did for a few years.

[griswold3]

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.

[Squantos]

Yep....AMX is a debit card for stupid people.....:o)

[Dr. Ursus]

Haves paying for have-nots.Credit card socialism.

[rabscuttle385]

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.

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.]

[Ben Mugged]

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.

[1010RD]

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?

[chiefqc]

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.

[1010RD]

Rabscuttle, let’s see the evidence. I call habeas corpus on that one!

[N. Theknow]

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.

Gotta pay for that company spokeslesbian who does their commercials somehow.

What a great idea. Everybody loves Ellen DeGenerate.< /sarcasm >

[Publius Valerius]

This is the guy who runs the company that has been lowering the limits on their cards for good customers

Amex charge cards don't have preset limits.

[Boiling Pots]

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.

[ExTexasRedhead]

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?

[Wyatt's Torch]

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.

[DonaldC]

“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.

[Fast Moving Angel]

Wasn’t one of the purposes of the bailouts to increase the flow of credit to the consumer? I wonder how much Amex received.

[Wyatt's Torch]

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.

What new rules??????