AMEX Letter

[Deleted User]

Sandtree said:

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.

No you have, the "done something to deserve it" part would be deemed as judgemental. you dont know what I have or have not done. 

No one had alleged a scam or a fraud, amex along with other credit card providers do raise their interest from time to time across the board, but them again they could deem every single customer as "risky" if they wanted to try and "sneak" an interest rate rise in, for all you know yours could be increased and they just havent got round to it yet ! 

Sandtree

Deleted_User said:
No you have, the "done something to deserve it" part would be deemed as judgemental. you dont know what I have or have not done. 

No one had alleged a scam or a fraud, amex along with other credit card providers do raise their interest from time to time across the board, but them again they could deem every single customer as "risky" if they wanted to try and "sneak" an interest rate rise in, for all you know yours could be increased and they just havent got round to it yet ! 

"Done something to deserve it" doesn't necessarily mean its something bad... it could be a decision impacting those that clear their balance in full each month.

Mine couldn't be next as its a chargecard and so has no interest.

jay1804

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.

It's nothing to worry about, i've just received my statement and there is a notice about a rate change.

A interest rate increase should bother anyone with an AmEx, as you should be clearing in FULL, to maximise cashback/rewards.

Brie

I would have thought that their computer had told them who they weren't making money from and so by raising the interest those individuals might decide to dump Amex.  Amex would then have to waste money servicing those accounts.

Sandtree

Brie said:

I would have thought that their computer had told them who they weren't making money from and so by raising the interest those individuals might decide to dump Amex.  Amex would then have to waste money servicing those accounts.

AmEx are making plenty of money from the fees they charge the merchants

Were this not the case then fee free chargecards (where there is never any interest) wouldn't exist 

born_again

>>>would use my amex green charge card more<<<

Maybe that is what they want. As less protection on purchases (no S75) and they get their money each month. Maybe this is part of their decision process. Why have customers with both a charge card & credit card. Which is increasing their debt exposure Even if you do pay back each month.

Many lenders are now looking at customers accounts & reducing debt exposure. Especially if a customer has more than one credit facility with them.

MoJoeGo

It's a bit of an odd one isn't it... the only reason to have an Amex is to benefit from the better rewards they offer. They could put the rate up to 1000% on mine and they still wouldn't make a penny out of me (well not directly at least...)

Sandtree

MoJoeGo said:

It's a bit of an odd one isn't it.

Not really when you remember that banks, insurers etc have to model disaster scenarios to calculate how much capital they are required to hold to ensure events don't cause them to go bust.  Even if it has no impact on you in normal scenarios that isnt to say it won't reduce the capital they need to hold against certain risks. 

born_again

Given the Op pays in full each  month. Then is not this letter just a moot point that makes no difference anyway?

Bet most people that receive one will just bin it thinking. Does not affect me. 👀

MoJoeGo

Sandtree said:

MoJoeGo said:

It's a bit of an odd one isn't it.

Not really when you remember that banks, insurers etc have to model disaster scenarios to calculate how much capital they are required to hold to ensure events don't cause them to go bust.  Even if it has no impact on you in normal scenarios that isnt to say it won't reduce the capital they need to hold against certain risks. 

That would certainly make sense in the context of reducing limits. But I'm not sure how raising rates, for a card whose user base would not typically be paying interest, would have any material impact on Amex's reg cap requirements.