Credit Hangover, Big Headache For American Express

[fused]

...And here I thought Amex was ahead of the other CC issuers with all of the AA they have been taking against their card holders.

http://www.reuters.com/article/ousiv/idUSTRE49094X20081001

[haulingthescoreup]

I missed it, who beat them to the punch? I always figured it was AmEx who introduced it on such a broad scale.

I said six months ago, and I'll say it again: in another few years, AmEx's broadening of customer base and introduction of so many revolvers, with the following panicky AA, will wind up in business textbooks as a case study of how not to expand your credit customer base.

[fused]

Amex will be gobbled-up by one the huge boys. Even though Amex has some sub-prime card holders in their portfolio, they still have a ton of uber-prime card holders who have been with them for more than 25 years. I can see BoA, Chase, CITI and maybe even HSBC finding Amex's portfolio to be VERY attractive. I still think Discover will have the same fate.

[haulingthescoreup]

No, no way Discover.

And you honestly see this happening with American Express? Although I suppose I can see this, since they don't have the anchoring mortgage accounts and all.

[MattH]

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@haulingthescoreup wrote:
No, no way Discover.

And you honestly see this happening with American Express? Although I suppose I can see this, since they don't have the anchoring mortgage accounts and all.

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Also, AMEX does a LOT of Corporate Card business. My company, for instance -- we're supposed to use our Corporate AMEX for travel expenses as much as possible because our internal expense account system is integrated with the AMEX transaction data so I can submit most costs with just a few mouseclicks.  Then our computer automagically pays the AMEX computer, eliminating paper checks.

Message Edited by MattH on 10-02-2008 07:47 PM

[athensguy]

Discover is holding up better than almost all of the other CC issuers.

American Express has had a larger increase in charge offs than Capital One.