07-22-2009 07:58 PM
There used to be lot of complaining about Amex few days ago. Now most of the talk is about Wamu/Chase Cards. I wonder if Amex is slowed their AA / FR actions.
nah- I think it is the new policies went into effect, hit people it was going to hit and that was it.
07-22-2009 08:06 PM
07-22-2009 11:33 PM - edited 07-22-2009 11:35 PM
AmEx tried to get a larger piece of the CC business when they offered Delta cards and the like to people with credit scores as low as 590, and also tried to force credit card customers to adopt a charge card mentality. Much of their F/R action in the past two years was an attempt to backtrack from those less than brilliant moves. AmEx's F/R efforts have been scaled back recently, because of the bad publicity they received due to their risk algorithms repeatedly punishing perfectly good customers.
The main difference between AmEx and Chase is that AmEx's adverse action were targeted more individually based on a long list of sometimes bizarre risk triggers, while Chase's actions are aimed at an entire group of accounts. In the case of the ex-WaMu accounts, Chase acquired that portfolio as a side effect of gaining the WaMu banking presence in the West, which was its primary interest. They probably always knew they would need to lop off the worst accounts in the CC portfolio, hence the current CLD/closure action affecting 15% of the ex-WaMu accounts. Aside from ex-WaMu accounts, Chase's actions have affected a very small percentage of their customer (the combined January and August minimum payment increase to 5% affected less than 1% of their accounts).
Both AmEx and Chase are in the process of reducing overall credit limits by about 30% by mid-2010 to strengthen their balance sheets. And AmEx saw double-digit default rates earlier this year. I wouldn't say AmEx had too much to brag about ...
07-23-2009 08:26 AM
Chase is my highest CL. I called and asked them about CLD's and the CSR stated "You have to give us a reason" when I asked if they did it at random.
You have to give us a reason to be CLD'ed. However, you merely need to exist for us to close your account.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.