Re: American Express to Refund $85 Million
10-03-2012 09:56 AM
Maybe this is why they're dumping the zync They're poor now and don't want to risk anything on us low credit people
I really don't know, the subprime market is profitable and everyone wants a slice. Prime is red ocean, subprime may not be entirely blue ocean still but there's lots of open space in the market.
The fee is roughly 10% of last year's earnings, absolutely non-trivial but it's not going to be financially crippling. Admittedly according to the similar investor relations releases, Amex has the lowest default rate in the industry: maybe they were seeing a trend in Zync holders they didn't like. It's so hard to know when I doubt much will be officially posted.
I guess one of the the other ways this forum is atypical is while people don't usually find it until something is realized to be ugly on their credit report, the denizens of this forum are probably less likely to repeat past mistakes than the average population too, so analysis of default rates from here borders on impossible.
Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 670, Wally TU 700, EX 718 (11/29/13, EX 07/11/13)
Goal Score: 680 in all three (01/01/14)
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