topic Re: Need More Proof AMEX is tighting their standards? in Credit Cards

Need More Proof AMEX is tighting their standards?

champ02 — Sun, 21 Dec 2008 05:10:36 GMT

http://www.ajc.com/news/content/business/stories//2008/12/21/creditcards_1221.html?cxntlid=homepage_tab_newstab

I have not been touched as of yet, but I wonder when they will get around to me? I only have a $2000 CL on my Blue which I have had for 1 year with no CLIs'. Thank God I have never used my card at Walmart!

Re: Need More Proof AMEX is tighting their standards?

Anonymous — Sun, 21 Dec 2008 05:21:52 GMT

I will never get an AMEX, unless its from BofA. This business practice is way beyond stupid.. If they aren't doing well and they want to CLD/Close accounts, thats great. But the way they are doing it is just ignorant.

Re: Need More Proof AMEX is tighting their standards?

Anonymous — Sun, 21 Dec 2008 07:06:58 GMT

6 Months after getting my AMEX Blue I hit the luv botton and was declined for a CLI. I recieved the letter a week later and the reason was they didn't like where I was shopping. They didn't like that I purchased a tv off of the HSN even though I pif before the due date.

Message Edited by l9ikjam on 12-20-2008 11:06 PM

Re: Need More Proof AMEX is tighting their standards?

Anonymous — Sun, 21 Dec 2008 22:16:59 GMT

It would be hysterical if a card came out that gave bonus points for purchases at Walmart, fast food joints, Countryside mortgage closing costs, and in red light districts. Maybe the Diner's Club can errode some of AMEX's old business.

Re: Need More Proof AMEX is tighting their standards?

jmbfl — Mon, 22 Dec 2008 01:07:41 GMT

The interesting aspect of this is that AMEX is CLD'ing their cardholders for shopping at the very places that they have deemed worthy of accepting their card. The FTC has already cited this practice in a complaint filed against another CC operation. I wonder how AMEX gets away with it. What's wrong with this picture?

Re: Need More Proof AMEX is tighting their standards?

Mark_in_Pasadena — Mon, 22 Dec 2008 05:52:46 GMT

@champ02 wrote:
http://www.ajc.com/news/content/business/stories//2008/12/21/creditcards_1221.html?cxntlid=homepage_tab_newstab

I have not been touched as of yet, but I wonder when they will get around to me? I only have a $2000 CL on my Blue which I have had for 1 year with no CLIs'. Thank God I have never used my card at Walmart!

It's a combination of shopping at Walmart and other factors. Factors such as having a loan from a subprime lender, or from one of the ALT-A lenders which are about to collapse in the coming year. People with ALT-A and Option ARM loans will have their interest rates adjusting from a teaser 4% to 13% in the coming 2 years.

If you have a loan from a mortgage company that especializes in one of these products, have more than 40% utilization on your credit cards, and shop at Walmart, then that would paint a picture of high risk to me.

Re: Need More Proof AMEX is tighting their standards?

heirophant — Mon, 22 Dec 2008 06:32:58 GMT

I don't understand wy AMEX would punish us for shopping at some place that saves us money - money that could be used to pay AMEX. Just seems unreal. I shop at Walmart because they have the most fair prices on a lot of items. It just makes sense to me... AMEX can do what they want to my accounts with them. I never even use my Blue anymore since they slashed my limit and I charge at Walmart all the time with my Green. They didn't give me this bogus reason in the letter, though. They gave me a bogus reason that there were new collections accounts on my report even though there are less than when I got approved. I am going to shop at Walmart because I choose to shop there. No company is going to dictate to me.

Re: Need More Proof AMEX is tighting their standards?

Anonymous — Mon, 22 Dec 2008 15:30:46 GMT

AMEX is actually just patriotic, they give AA for accounts that are purchasing goods not coded as made in the USA.

I kid I kid

Re: Need More Proof AMEX is tighting their standards?

Geordi — Mon, 22 Dec 2008 15:47:45 GMT

Sorry if this offends anyone, but this is just business and yes it isn't fair.

Companies have been laying off people by the hundreds, if not thousands, for years. Many of those that have been laid off were great employees: never late; hard working; trustworthy; etc. However, they were laid off nonetheless. Credit card issuers such as American Express are no different.

Whether or not you agree with the bailout of financial institutions, lenders are in big trouble and everyone, both responsible borrowers and irresponsible borrowers are being affected.

Message Edited by Geordi on 12-22-2008 10:47 AM

Re: Need More Proof AMEX is tighting their standards?

Anonymous — Mon, 22 Dec 2008 15:57:27 GMT

@Geordi wrote:
Sorry if this offends anyone, but this is just business and yes it isn't fair.

Companies have been laying off people by the hundreds, if not thousands, for years. Many of those that have been laid off were great employees: never late; hard working; trustworthy; etc. However, they were laid off nonetheless. Credit card issuers such as American Express are no different.

Whether or not you agree with the bailout of financial institutions, lenders are in big trouble and everyone, both responsible borrowers and irresponsible borrowers are being affected.
Message Edited by Geordi on 12-22-2008 10:47 AM

Would it be ok then if your company laid you off because they found out you do your shopping at walmart? People that shop at walmart tend to be lazy workers and be less productive. Do you think that is fair? legal? moral?

I am not upset that Amex is CLD, closing accounts left and right. I am upset by the way they are profiling their customers, I now have 0 respect for Amex.

Re: Need More Proof AMEX is tighting their standards?

haulingthescoreup — Mon, 22 Dec 2008 19:11:01 GMT

My guess would be that they think that people who shop at WalMart aren't big spenders, and that they therefore aren't likely to be staying in five-star hotels, flying frequently and so forth.

Re: Need More Proof AMEX is tighting their standards?

Equinox — Mon, 22 Dec 2008 19:15:55 GMT

This is a tad bit ridiculous. This is not "tightening of standards", It's strangling.

Re: Need More Proof AMEX is tighting their standards?

score_building — Mon, 22 Dec 2008 20:03:01 GMT

it may just be like the not ok mortgage company issue...they've somehow got their hands on data showing walmart customers (bargain seekers?) have a significantly higher rate of default as a group. it is becoming ad absurdum at this point.

Re: Need More Proof AMEX is tighting their standards?

Anonymous — Mon, 22 Dec 2008 21:08:55 GMT

Now that I think about it, I don't shop at WalMart. And Amex hasn't AA'd me. Coincidence?

Target is closer.

Re: Need More Proof AMEX is tighting their standards?

GregB — Mon, 22 Dec 2008 21:10:08 GMT

@haulingthescoreup wrote:
My guess would be that they think that people who shop at WalMart aren't big spenders, and that they therefore aren't likely to be staying in five-star hotels, flying frequently and so forth.

I can think of three friends with whom I have personally gone shopping at WalMart who own multiple homes without mortgages, private planes, and yachts. Oh, and my two mortgages are at Countrywide - conventional 20% down mortgages. I guess I must be a flake! Generalizations are never completely accurate. I hope they don't use any information like that to count for much.

Re: Need More Proof AMEX is tighting their standards?

MidnightVoice — Mon, 22 Dec 2008 21:15:02 GMT

@GregB wrote:

Generalizations are never completely accurate. I hope they don't use any information like that to count for much.

If they are like FICO, they use statistics. This means there are outliers, but it does not make the statistical approach invalid.

Re: Need More Proof AMEX is tighting their standards?

Anonymous — Mon, 22 Dec 2008 21:33:53 GMT

I see from my "recent activity" that my AU husband used his Blue Cash for lunch at White Castle sometime last week.

When shall I expect my card (and CL) to self-destruct?

Re: Need More Proof AMEX is tighting their standards?

score_building — Mon, 22 Dec 2008 21:38:44 GMT

@Anonymous wrote:
my AU husband used his Blue Cash for lunch at White Castle sometime last week.

Head for the hills!!!!!!!!!!!!!!

(you may be OK if he skipped the curly fries )

Re: Need More Proof AMEX is tighting their standards?

Equinox — Mon, 22 Dec 2008 21:51:33 GMT

@Anonymous wrote:
I see from my "recent activity" that my AU husband used his Blue Cash for lunch at White Castle sometime last week.

When shall I expect my card (and CL) to self-destruct?

I've used my Blue Cash at White Castle a couple times this month. It's still in one piece!

score_building-

Those fries are awful, the fish nibblers however, are so amazing.

Message Edited by Equinox on 12-22-2008 01:51 PM

Re: Need More Proof AMEX is tighting their standards?

haulingthescoreup — Tue, 23 Dec 2008 02:04:37 GMT

GregB wrote:

@haulingthescoreup wrote:
My guess would be that they think that people who shop at WalMart aren't big spenders, and that they therefore aren't likely to be staying in five-star hotels, flying frequently and so forth.

I can think of three friends with whom I have personally gone shopping at WalMart who own multiple homes without mortgages, private planes, and yachts. Oh, and my two mortgages are at Countrywide - conventional 20% down mortgages. I guess I must be a flake! Generalizations are never completely accurate. I hope they don't use any information like that to count for much.

As MV said, I assume it's from their statistical research, and your friends are outliers. AmEx bases its actions on what they think they know about the blob of card-holders in the middle. Whether the research was well-designed or not would be another question.

We also have a Countrywide mortgage, fixed conventional, 20% down. It started with a real lender and was sold to CW. (One of their employees sold identities, to add to the specialness.) I called AmEx this morning to point out that it's not our fault that CW has our mortgage, and the CSR blandly said that they would be able to see if the mortgage had been transferred. I don't know how, as this happened immediately after closing, and the original lender is not on our reports.