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AMEX offering money to close accounts...Anyone get an offer yet?

Established Contributor

AMEX offering money to close accounts...Anyone get an offer yet?

I just saw this today, Interesting way to go.

 

http://www.marketwatch.com/news/story/American-Express-offers-some-holders/story.aspx?guid=%7B53897B...

 


1:15pm 02/24/2009
Delayed quote data
AXP 12.38, +0.23, +1.9%) is offering a $300 incentive for customers to cancel their accounts as the card issuer grapples with surging loan delinquencies and soft card-member spending.
The company is offering a $300 prepaid card, which can be used anywhere American Express is accepted, to certain customers who pay off their entire balance between March 1 and the end of April. Enrolling in the deal automatically cancels the customer's account, regardless of whether he successfully pays off the balance.
The move comes as ratings firm have warned that rising credit-card delinquencies could push the charge-off rate into the double digits by the end of the year from December's record level of 7.7% amid rising unemployment rates. The offer is also a stark contrast to previous incentives, like frequent flyer miles and cash-back deals, offered by card issuers to encourage consumers to open an account.
American Express' offer is only valid for customers who receive a mailing with a registration code from the company and was advertised as a way for people to "simplify your finances." It wasn't immediately clear what kind of balances the company is targeting with the deal or how many people will receive the offer.
The company also warned consumers may lose rewards points by enrolling in the offer.
Shares of American Express were recently down 3.9% at $12.47 amid another broad decline for equities. The stock is down 70% since September.
End of Story
Message Edited by Takunda1 on 02-24-2009 12:42 PM
4 REPLIES
Epic Contributor

Re: AMEX offering money to close accounts...Anyone get an offer yet?

I can't wait to see if they offer it on our business cards, 2 we carry a balance on.
Senior Contributor

Re: AMEX offering money to close accounts...Anyone get an offer yet?

I'll be more than happy to close my Clear card if they are willing to give me $300 to do so. I don't think it'll happen though because it has a 0 balance.
Here we go again...
Established Contributor

Re: AMEX offering money to close accounts...Anyone get an offer yet?

I guess at this point they are targeting those that carry a high balance orf have carried a balance for a long time. Given this situation, I think the FICO formula has to adapt becasue while available is a plus for your score nowadays almost all CC companies are CLDing everyone. If this continues then everyones score is going to tank.
Frequent Contributor

Re: AMEX offering money to close accounts...Anyone get an offer yet?

I will got about 50 dollars on mine good trade there  LOL....

2wheel