AMEX Letter

[Deleted User]

Just received this strange letter from amex this morning saying that they are increasing my interest rate following an "account review" 

Not really that bothered as its paid in full each month anyway and would use my amex green charge card more, but I've never seen this happen, I know what interest rate you are given depends on your credit score at time of application but I've never heard of it changing in regards to risk reviews as such, in fact it makes me giggle as I've never carried a statement balance over on any of my amex cards 

My suspicion is that they have done this on alot of customers and they are trying to sneak an interest rate rise in across the board via the back door, but again its probably not going to be something that affects most of their customers as people usually only use amex cards for associated points and rewards.

Sandtree

It happens, not that uncommonly... as you have no outstanding balance its fairly irrelevant to you. As the letter says, were you running an outstanding balance you could opt out and keep the same interest until paid off but account closed or accept the increase and keep the account open.

[Deleted User]

Deleted_User said:

 I know what interest rate you are given depends on your credit score at time of application 

Just so you are aware, this is incorrect. No decision is ever made based on the fantasy / gimmick "score" you see - no lender ever sees that score, they decide what to give you based on an internal assessment on the data on your file

Deleted_User said:

My suspicion is that they have done this on alot of customers and they are trying to sneak an interest rate rise in across the board via the back door, 

How is it sneaking something by the back door if they send you a letter telling you what they are doing? Lots of people get rate increases or balance reductions following reviews 

Sandtree

Deleted_User said:
How is it sneaking something by the back door if they send you a letter telling you what they are doing? Lots of people get rate increases or balance reductions following reviews 

They are implying that every customer is going to receive this letter because its a universal step up rather than it being a personal decision following a review of their account. 

2ilent8cho

I received the same letter this week, i just presumed they are doing it to most. Since i almost always pay of my Amex in full every month it does not effect me really. 

Rosco32

Deleted_User said:

Deleted_User said:

 I know what interest rate you are given depends on your credit score at time of application 

Just so you are aware, this is incorrect. No decision is ever made based on the fantasy / gimmick "score" you see - no lender ever sees that score, they decide what to give you based on an internal assessment on the data on your file

Deleted_User said:

My suspicion is that they have done this on alot of customers and they are trying to sneak an interest rate rise in across the board via the back door, 

How is it sneaking something by the back door if they send you a letter telling you what they are doing? Lots of people get rate increases or balance reductions following reviews 

OP may be referring to the credit score generated by AMEX at time of application processing and not necessarily the gimmick scores...

funkycredit

Sandtree said:

Deleted_User said:
How is it sneaking something by the back door if they send you a letter telling you what they are doing? Lots of people get rate increases or balance reductions following reviews 

They are implying that every customer is going to receive this letter because its a universal step up rather than it being a personal decision following a review of their account. 

The Amex letter, to me reads as though the rate is being increased on that account only; based on the risk profile & liklihood of non payment. It says so in the second paragraph... well I've not had any such letter, funnily enough on my latest statement earlier this week my limit is being increased quite substantially. 

Don't know how the OP can imply it to be anything else really?

[Deleted User]

Sandtree said:

Deleted_User said:
How is it sneaking something by the back door if they send you a letter telling you what they are doing? Lots of people get rate increases or balance reductions following reviews 

They are implying that every customer is going to receive this letter because its a universal step up rather than it being a personal decision following a review of their account. 

Even if it was blanket (unlikely), it's still not sneaking or back door as they are writing to the person and telling them!

Sandtree

Deleted_User said:

Sandtree said:

Deleted_User said:
How is it sneaking something by the back door if they send you a letter telling you what they are doing? Lots of people get rate increases or balance reductions following reviews 

They are implying that every customer is going to receive this letter because its a universal step up rather than it being a personal decision following a review of their account. 

Even if it was blanket (unlikely), it's still not sneaking or back door as they are writing to the person and telling them!

For some reason the OP feels there is a material difference between being told a review of YOUR account has resulted in an increase in interest -v- being told there is a universal increase. I guess there is a potential "blame" consideration... if its a review of your account alone then its something you've done to deserve this -v- if its a universal. You would have to be a very delicate flower to think it tips the balance into being sneaky etc. 

If there is a universal increase is generally easy to spot for a product thats still sold... check the new business rates.

[Deleted User]

Sandtree said:

Deleted_User said:

Sandtree said:

Deleted_User said:
How is it sneaking something by the back door if they send you a letter telling you what they are doing? Lots of people get rate increases or balance reductions following reviews 

They are implying that every customer is going to receive this letter because its a universal step up rather than it being a personal decision following a review of their account. 

Even if it was blanket (unlikely), it's still not sneaking or back door as they are writing to the person and telling them!

For some reason the OP feels there is a material difference between being told a review of YOUR account has resulted in an increase in interest -v- being told there is a universal increase. I guess there is a potential "blame" consideration... if its a review of your account alone then its something you've done to deserve this -v- if its a universal. You would have to be a very delicate flower to think it tips the balance into being sneaky etc. 

If there is a universal increase is generally easy to spot for a product thats still sold... check the new business rates.

People on MSE seem to be very rude and arrogant. I must have done something to deserve this and im a sensitive flower for wanting to know has anyone else recieved the letter, ive done NOTHING and clearly if I was that much of a risk they would have reduced my credit limit and I also clearly stated it dosent bother me that much ! 

Ive noticed this happening on a few posts, people are on MSE for financial support and general discussion not to be mobbed and judged by a bunch of hoitey toity middle class trolls who know nothing about what a person may or may not have done, I think its time admin started banning a few members, if you want to be snarky with people get a facebook account. 

This type of sweeping thing did happen with barclaycards recently as a result of "risk reviews" and it happened to alot of people, so its absurd to suggest that someone has allegedly "done something to deserve it" 

Sandtree

Deleted_User said:

Just received this strange letter from amex this morning saying that they are increasing my interest rate following an "account review" 

Not really that bothered as its paid in full each month anyway and would use my amex green charge card more, but I've never seen this happen, I know what interest rate you are given depends on your credit score at time of application but I've never heard of it changing in regards to risk reviews as such, in fact it makes me giggle as I've never carried a statement balance over on any of my amex cards 

My suspicion is that they have done this on alot of customers and they are trying to sneak an interest rate rise in across the board via the back door, but again its probably not going to be something that affects most of their customers as people usually only use amex cards for associated points and rewards.

Then clarify how they are being sneaky by writing to you to tell you the interest rate is increasing?

Deleted_User said:
im a sensitive flower for wanting to know has anyone else recieved the letter 

Unfortunately there are also a lot of people who don't read what is written and just want to take offence. No one has passed any judgement on asking if others have received such letters (though to answer it directly, probably over a hundred a day). What people have been confused about it the comment about AmEx being "sneaky" (which is not far removed from the normal "scams", "fraud" etc allegations that people give and then get sensitive when people point out its nothing close to those allegations).

If you actual read what was written was a postulation of how someone could come to the conclusion its sneaky and the comment that if that postulation were the reason you'd need to be a delicate flower.

Obviously you could actually answer all those that have asked how you come to the conclusion its sneaky, show its not my postulation and therefore the delicate flower comment clearly wouldn't be applicable to you.