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Amex shutting down accts en mass...

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longtimelurker
Epic Contributor

Re: Amex shutting down accts en mass...


@CreditCuriosity wrote:

@RickNATL wrote:

There has to be a goal in all of this...reduce the amount of credit extended by the company, change program benefits, cut losses (churners, etc.), cater to a different market, rellocate credit lines for other products, etc. Very curious to the "why now."

 

My other thoughts, with recent CLDs, will this become the next big swing of the bat...


Quite simply to put is as simple as possible they are taking out the "trash".  They don't mind as much losing out money on bonus and no spend on card afterwards, but will cut you off from future bonuses.  They are going after people that purely gamed the system in illegal ways that were never intended and they choose no to do business with those people as those people can be credit risks most likely as well is probably how they see it.  Amex is certainly not hurting for capital, they are a huge company.


True except for, in most cases, "illegal" ways!   At most, "against ToS" and in some cases not even that (e.g. self-referral) where Amex dropped the ball on both technical implementation and legal language.      There are lots of people doing illegal things with credit cards, but these are mainly stealing card info, identity theft to get a card, or using one to break and enter through a weak lock!  

Message 31 of 102
simplynoir
Community Leader
Mega Contributor

Re: Amex shutting down accts en mass...


@CreditCuriosity wrote:

@RickNATL wrote:

There has to be a goal in all of this...reduce the amount of credit extended by the company, change program benefits, cut losses (churners, etc.), cater to a different market, rellocate credit lines for other products, etc. Very curious to the "why now."

 

My other thoughts, with recent CLDs, will this become the next big swing of the bat...


Quite simply to put is as simple as possible they are taking out the "trash".  They don't mind as much losing out money on bonus and no spend on card afterwards, but will cut you off from future bonuses.  They are going after people that purely gamed the system in illegal ways that were never intended and they choose no to do business with those people as those people can be credit risks most likely as well is probably how they see it.  Amex is certainly not hurting for capital, they are a huge company.


Trying to find the articles but recall reading how AMEX has spent quite a bit on their revamped rewards system more than any other bank at present. So it makes sense as @CreditCuriosity said to weed out the leechers and expand their portfolio to new customers that can be profitable to both transactors and revolvers

Message 32 of 102
red259
Super Contributor

Re: Amex shutting down accts en mass...


@simplynoir wrote:

The reason the POT feature is being mentioned as a possible reason for the shutdowns isn't because of its intended use (carrying a balance) but because some people were using the feature on multiple cards to get the bonus for signing up for POT, calling/chatting with AMEX to "disable" it and getting the bonus again when the next round of POT signup offers came out

 

Basically, churning the bonus


ROFL it wouldn't have even occured to me that you could do this. 

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 33 of 102
jbestman007
Contributor

Re: Amex shutting down accts en mass...


@coldfusion wrote:

@Anonymous wrote:

@coldfusion wrote:

@Mv350 wrote:
I'm just so grateful to get let into the Amex family. I'd be pretty bummed to get the ax.


But I also wouldn't be playing games with them either.

The people that do this (or ride the grAAvy train, or buy $50,000 worth of money orders at a time at WM, etc. etc.) accept that eventually getting the spigot shut off is part of the game. Grab and dash, then move on to discover the next loophole to exploit.

 

Their only real regret is in losing the revenue stream, and they couldn't care less what anyone else thinks.


Seems to me that sooner or later that bunch is gonna run through the roster of banks that have bonuses lucrative enough to churn, and may find themselves tossed out on their collective butts in the cold with just subpar cards and no-bonus offerings. Blacklists don't only exist for people who burned banks in BK. Wonder if they've considered that. 


The pros and serious hobbiests are about 10 steps ahead of you.


One universal truth; the general public is never really as smart as they think they are. 


Message 34 of 102
simplynoir
Community Leader
Mega Contributor

Re: Amex shutting down accts en mass...


@red259 wrote:

@simplynoir wrote:

The reason the POT feature is being mentioned as a possible reason for the shutdowns isn't because of its intended use (carrying a balance) but because some people were using the feature on multiple cards to get the bonus for signing up for POT, calling/chatting with AMEX to "disable" it and getting the bonus again when the next round of POT signup offers came out

 

Basically, churning the bonus


ROFL it wouldn't have even occured to me that you could do this. 


😂

Don't underestimate the ingenuity of people to get free 💩

Message 35 of 102
Aim_High
Super Contributor

Re: Amex shutting down accts en mass...


@Anonymous wrote:  "Blacklists don't only exist for people who burned banks in BK."


+1

Seems to me that some people burn bridges without

really thinking about the potential consequences.

I care more about my credit report and ability to keep

good banking and credit relationships than to jeopardize

them for blatantly churning SUBs and bonuses that lenders

generously extend to try to build their business.  


Business Cards


Length of Credit > 40 years; Total Credit Limits >$850K
Top Lender TCL - Chase 156.4 - BofA 99.7 - AMEX 95.0 - CITI 94.5 - NFCU 80.0
AoOA > 30 years (Jun 1993); AoYA (Aug 2023)
* Hover cursor over cards to see name & CL, or press & hold on mobile app.
Message 36 of 102
red259
Super Contributor

Re: Amex shutting down accts en mass...


@Aim_High wrote:

@Anonymous wrote:  "Blacklists don't only exist for people who burned banks in BK."


+1

Seems to me that some people burn bridges without

really thinking about the potential consequences.

I care more about my credit report and ability to keep

good banking and credit relationships than to jeopardize

them for blatantly churning SUBs and bonuses that lenders

generously extend to try to build their business.  


Oh how generous those lenders are.... Lenders do the math in advance to figure out how to make a profit. Being generous has nothing to do with it. 

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 37 of 102
Aim_High
Super Contributor

Re: Amex shutting down accts en mass...


@red259 wrote:

@simplynoir wrote:

...some people were using the feature on multiple cards to get the bonus for signing up for POT, calling/chatting with AMEX to "disable" it and getting the bonus again when the next round of POT signup offers came out, Basically, churning the bonus


ROFL it wouldn't have even occured to me that you could do this. 


Exactly.  Brash move, IMO. 

How can you think that is "right" or "smart"? 

SMH  Smiley Sad


Business Cards


Length of Credit > 40 years; Total Credit Limits >$850K
Top Lender TCL - Chase 156.4 - BofA 99.7 - AMEX 95.0 - CITI 94.5 - NFCU 80.0
AoOA > 30 years (Jun 1993); AoYA (Aug 2023)
* Hover cursor over cards to see name & CL, or press & hold on mobile app.
Message 38 of 102
coldfusion
Community Leader
Mega Contributor

Re: Amex shutting down accts en mass...


@simplynoir wrote:

@red259 wrote:

@simplynoir wrote:

The reason the POT feature is being mentioned as a possible reason for the shutdowns isn't because of its intended use (carrying a balance) but because some people were using the feature on multiple cards to get the bonus for signing up for POT, calling/chatting with AMEX to "disable" it and getting the bonus again when the next round of POT signup offers came out

 

Basically, churning the bonus


ROFL it wouldn't have even occured to me that you could do this. 


😂

Don't underestimate the ingenuity of people to get free 💩


potd.gif

(3/2024)
FICO 8 (EX) 846 (TU) 850 (EQ) 850
FICO 9 (EX) 850 (TU) 850 (EQ) 850

$1M+ club

Artist formerly known as the_old_curmudgeon who was formerly known as coldfusion
Message 39 of 102
Aim_High
Super Contributor

Re: Amex shutting down accts en mass...


@red259 wrote:

@Aim_High wrote:

@Anonymous wrote:  "Blacklists don't only exist for people who burned banks in BK."


+1

Seems to me that some people burn bridges without

really thinking about the potential consequences.

I care more about my credit report and ability to keep

good banking and credit relationships than to jeopardize

them for blatantly churning SUBs and bonuses that lenders

generously extend to try to build their business.  


Oh how generous those lenders are.... Lenders do the math in advance to figure out how to make a profit. Being generous has nothing to do with it. 


I see your point and maybe "generous" isn't the best word for it.  But truth be told, they don't have to extend these offerings at all.  It's a carrot to lure in customers, hopefully the profitable ones.  And those who game any business's special deals, whether it's a bank or anything else, do a disservice to the majority of the public who is playing by the rules, being reasonable, and not purposefully trying to take more than their "fair share" of an offering.  While I realize they aren't literally giving away "free money" for nothing and that they have calculated the risk-rewards carefully, I also want them to continue to be profitable overall because I appreciate having their services and don't want to destroy the relationship.  Businesses, including banks, need to make money to thrive and continue, regardless of how "big" they are or how long they've been in business.  There's simply not a bottomless pit of money to draw from, even with the megabanks and lenders.  That's where the gamers differ from the majority of the public; they just don't care what they do to the bank's bottom line as long as they get their greedy paws on every penny they can manipulate. 


Business Cards


Length of Credit > 40 years; Total Credit Limits >$850K
Top Lender TCL - Chase 156.4 - BofA 99.7 - AMEX 95.0 - CITI 94.5 - NFCU 80.0
AoOA > 30 years (Jun 1993); AoYA (Aug 2023)
* Hover cursor over cards to see name & CL, or press & hold on mobile app.
Message 40 of 102
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