American Express 46% APR

herbie-152

I've just received a letter from American Express stating that for my British Airways American Express Premium Plus Card Account, they are about to:

1. Increase the APR to 46.0% !!!
2. Increase the Annual Fee to £150

When I immediately rang them up to cancel my credit card the very helpful guy in the call centre was shocked at this. He went off top check that the letter was correct and couldn't believe it when he was told it was. He told me that all AmEx APRs are gonig up but he wasn't expecting this.

If you are an AmEx customer, I strongly advise you to check anything they send you and call their call centre and check your APR. There are balance transfer deals available from other providers detailed on this site.

My account with AmEx has been managed properly and had a large credit limit on it. I sometimes paid it off in full and sometimes let it ride a few months but always paid the minimum by DD. Needless to say I have cancelled the card today and paid off my balance in full.

I know that they are a private company and can do what they want within the law, but with interest rates at 2%, surely charging 46% is just a not too subtle way of saying they don't customers at the moment.

_Andy_

That's pretty shocking - even worse than MBNA.
Did they not offer to budge at all on the rate?

billion25

_Andy_ wrote: »

That's pretty shocking - even worse than MBNA.
Did they not offer to budge at all on the rate?

Keep in mind that credit card providers are required to factor the fee into the APR...I think you'll likely find your true interest rate hasn't changed!

lka200

Thats awful..could hardly believe my eyes op!

Countthepennies_3

I can assure you the annual fee is claculated within your APR!

Numenor

How can the annual fee be calculated into the APR when they don't know how much you're going to spend through the year?

97trophy

herbie-152 wrote: »

but with interest rates at 2%, surely charging 46% is just a not too subtle way of saying they don't customers at the moment.

I don't mean to be rude, Amex want customers, they just don't seem to want customers (like you) who run a balance.

tom188

Numenor wrote: »

How can the annual fee be calculated into the APR when they don't know how much you're going to spend through the year?

Based on an assumed spend specified in the agreement - as required under the definition of APR, actual purchase rate is actually 19.9%.

https://secure.cmax.americanexpress.com/Internet/International/emea/GB_en/Personal/shared/pdfs/OUR%20CARDS/All%20Cards/BA%20Premium%20Plus%20Card/BA_123_TAT_Summary_Box_05_11_08.pdf

oxmatt

Numenor wrote: »

How can the annual fee be calculated into the APR when they don't know how much you're going to spend through the year?

It is based on a "typical" useage

DarrylG

herbie-152 wrote: »

I've just received a letter from American Express stating that for my British Airways American Express Premium Plus Card Account, they are about to:

1. Increase the APR to 46.0% !!!
2. Increase the Annual Fee to £150

When I immediately rang them up to cancel my credit card the very helpful guy in the call centre was shocked at this. He went off top check that the letter was correct and couldn't believe it when he was told it was. He told me that all AmEx APRs are gonig up but he wasn't expecting this.

If you are an AmEx customer, I strongly advise you to check anything they send you and call their call centre and check your APR. There are balance transfer deals available from other providers detailed on this site.

My account with AmEx has been managed properly and had a large credit limit on it. I sometimes paid it off in full and sometimes let it ride a few months but always paid the minimum by DD. Needless to say I have cancelled the card today and paid off my balance in full.

I know that they are a private company and can do what they want within the law, but with interest rates at 2%, surely charging 46% is just a not too subtle way of saying they don't customers at the moment.

I also received this note from Amex today re the 46%. totally out-raged by this. Have been a high spending customer for over a decade with no defaults and then this....this an insult and a basic statement that they do not want my business...
Spoke toi them to cancel this morning, they offered 14.9% instead - nice but I said they have broiken my trust by trying on the 46% so still went ahead and cancelled.
Sad as I have enjoyed the card and its benefits but I view commercial integrity highly - and Amex have broken this in my eyes.

DarrylG

I also received this note from Amex today re the 46%. totally out-raged by this. Have been a high spending customer for over a decade with no defaults and then this....this an insult and a basic statement that they do not want my business...
Spoke toi them to cancel this morning, they offered 14.9% instead - nice but I said they have broiken my trust by trying on the 46% so still went ahead and cancelled.
Sad as I have enjoyed the card and its benefits but I view commercial integrity highly - and Amex have broken this in my eyes....