What happens to our Amex backdates after the Costco TE goes away?

[Gunnar419]

Here goes the first of the many questions about what happens when/if Citi takes over the Amex Costco TE portfolio.

What happens to our backdates?

I know that if Amex just closes the TE card, the backdate is preserved on our CRs. What happens if it sells the portfolio and our TEs are just replaced with new co-brand Citi cards, though? Wouldn't those be new accounts and therefore bad for our AAoA? And would the TE then report as a closed account, perserving our backdates for the next 10 years or would the TE just be absorbed into the record of the Citi account?

[takeshi74]

Backdating is only relevant to AmEx.  The Citi Costco card will be a new account for anyone that decides to follow through with it.

AmEx hasn't announced what they're doing with TE accounts.  If they do what they did in Canada then the TE cards will be converted into another AmEx card.

[Anonymous]

I don't know if AmEx even does this, but maybe see if you can PC to something else before the changeover happens. 

[Gunnar419]

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@takeshi74 wrote:

Backdating is only relevant to AmEx.  The Citi Costco card will be a new account for anyone that decides to follow through with it.

AmEx hasn't announced what they're doing with TE accounts.  If they do what they did in Canada then the TE cards will be converted into another AmEx card.

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Except that the Costco agreement with Citi requires them to buy out the Amex TE portfolio. So would Amex even be able to convert the TE into another Amex for existing customers?

It seems unlikely that Citi could both buy out the portfolio and Amex keep and convert the portfolio, and really unlikely that every TE customer would end up with two cards.

I know that backdating is exclusive to Amex and I know Citi wouldn't preserve it. My question is about what happens to the backdate on our CRs IF Citi absorbs the whole TE portfolio. Does the TE report as a closed account (with backdate) or does is just change to a new (non backdated of course) Citi account.

[Anonymous]

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@Gunnar419 wrote:

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@takeshi74 wrote:

Backdating is only relevant to AmEx.  The Citi Costco card will be a new account for anyone that decides to follow through with it.

AmEx hasn't announced what they're doing with TE accounts.  If they do what they did in Canada then the TE cards will be converted into another AmEx card.

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Except that the Costco agreement with Citi requires them to buy out the Amex TE portfolio. So would Amex even be able to convert the TE into another Amex for existing customers?

It seems unlikely that Citi could both buy out the portfolio and Amex keep and convert the portfolio, and really unlikely that every TE customer would end up with two cards.

I know that backdating is exclusive to Amex and I know Citi wouldn't preserve it. My question is about what happens to the backdate on our CRs IF Citi absorbs the whole TE portfolio. Does the TE report as a closed account (with backdate) or does is just change to a new (non backdated of course) Citi account.

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I would think that it will report as a closed account and you'll keep the original MSD and a new account will open with CITI

[Gunnar419]

Thanks, Irish. That would make sense and would be an okay outcome.

I've never had experience having a card from one vendor or one network get absorbed into another. Anybody here who's had that experience recall what happened? (Of course I don't guess any of the absorbed cards were likely to have been Amexes, and that does make a difference given the MSD issue.)

[longtimelurker]

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@Gunnar419 wrote:

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@takeshi74 wrote:

Backdating is only relevant to AmEx.  The Citi Costco card will be a new account for anyone that decides to follow through with it.

AmEx hasn't announced what they're doing with TE accounts.  If they do what they did in Canada then the TE cards will be converted into another AmEx card.

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Except that the Costco agreement with Citi requires them to buy out the Amex TE portfolio. So would Amex even be able to convert the TE into another Amex for existing customers?

It seems unlikely that Citi could both buy out the portfolio and Amex keep and convert the portfolio, and really unlikely that every TE customer would end up with two cards.

I know that backdating is exclusive to Amex and I know Citi wouldn't preserve it. My question is about what happens to the backdate on our CRs IF Citi absorbs the whole TE portfolio. Does the TE report as a closed account (with backdate) or does is just change to a new (non backdated of course) Citi account.

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While we can always be surprised, I don't see the second case happening.   Assuming the portfolio has to be bought I think either:

1) TE closed, (and of course keeping backdate, all that happens is status is now closed) and new Citi card

2) New Citi card inherits information from TE, including date and payment history.  This isn't really backdating as much as an "update" of issuer info on existing card.  Not sure this can happen though

In the past, when a bank bought a store card from another bank, didn't people end up in scenario 1?  (With a hit to AAoA)

[Imperfectfuture]

According to news report (posted in other thread, credit news), abcnews and other sources are starting to say that the TE portfolio will be reevaluated. Some folks might not qualify for the new card,

I strongly suggest if TE is your only Amex, and you like the limit, get another Amex so you can transfer the limit (13 months time frame from opening of TE to being able to transfer balance).

[CreditCuriosity]

Nevermind read the article.. All is rumors for another few weeks until offical news comes out from Costco/Amex and Citi.. Until then only people can speculate what will happen to the TE portfolio although one thing is supposibly known is the TE portfolio as a whole must be obtained by Citi as part of the deal..  Assuming this protects Costco's interest in keeping there existing customers along with lining Amex's pocket books as surely this won't come free.

[corymcd88]

I would do a PC on the TE card. I did it on a TE Biz card about a year a go to a different product.

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