05-21-2009 11:20 AM
It is common, in forums we see most times only the negative statements and I totally understand when ppl complaining about closed accounts, cutted CLs etc. But at the end, we dont know the whole story behind all the postings we read. We only hear the customers opinion, never the one from the card issuer - we should have this in mind.
Myself I cannot complain about Amex over the last 13 years. They always treat me and my wife pretty well and the few issues we had were solved immediately. Also they did a pretty good job with their card transfer program from Europe to the US for us.
05-21-2009 12:00 PM - edited 05-21-2009 12:00 PM
You're completely right in your assessment
As far as I understand, the goal of credit scoring is to differenciate customers and help financial institutions to make decision regarding customer's request.
But for some reason (greed?) financial institutions disregarded it and started issueing credit to everyone who is able to fog a mirror. As we all know, the ability to fog a mirror does not pay bills and eventually we are in recession.
Banks and CCC frantically try to reduce their exposure which leads to AA and they AA everybody, good, bad and average customers.
I think they are not concerned right now with customers, they do not mind to lose customers, they try to survive( and thanks to good people in Washington, DC, they will). When time comes, they will be able to entice customers to come back.
At the same time, at least 50% of customers who were AA'ed, should not have been able to get this credit in the first place. They are unable to pay for their purchases, lose their homes and etc. But there are good people in Washington, DC who always help and prise lack of responsibility.
why harbor resentment toward those who lament the loss of a hard earned account despite that they may have problems with how the issuer handled it?
I harbor absolutely no resentment to those that have lost their AMEX accounts. I am only commenting on what I observe in their own comments and try to put it into some sort of perspective instead of the shrill, "I've been wronged" tone. I believe that some of the misinterpretation of what is going on is best described in your own words, "hard earned account". Truth be told, many accounts over the last few years were not hard earned, they were given out like lollipops by a sort of online financial Santa Claus. "Push the app button and enjoy your new CL. Have a nice day." Few scores were too low or too damaged for AMEX and almost all the other creditors to give out copious amounts of cheap credit. That was foolish on their part and they are paying for it, as are all US taxpayers. But as the old saying goes, it takes two to tango. Let's not delude ourselves into thinking all the retracted lines of credit were hard earned and deserved. As someone previously posted, when AMEX gives out cards to college kids with no income how prestigious, or wise, is that? We all got drunk on this cheap credit. It had to end and that is happening now. Sure people are upset and that is to be expected. No one wants to see their lifestyle crimped. We have have petitioned our Government and they have acted. In my view it won't make much difference, but that is how things normally work out. Hopefully all of this will result in the right amounts of credit, at the right price, will get to the right people. Some will win, many will lose. The story is unfolding.
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