Need More Proof AMEX is tighting their standards?

[haulingthescoreup]

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.

[Equinox]

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

[score_building]

 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.

[Anonymous]

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

Target is closer. 

[GregB]

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@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.

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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. 

[MidnightVoice]

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@GregB wrote:

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

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

[Anonymous]

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?

[score_building]

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@Anonymous wrote:

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

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

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

[Equinox]

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@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?

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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

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

[haulingthescoreup]

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GregB wrote:

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@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.

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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. 

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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.