AmEx paying card holders to close their accounts

[fnulnu]

http://uk.reuters.com/article/ousiv/idUKTRE51M6N920090223

NEW YORK (Reuters) - American Express Co, battered by mounting credit card losses, is offering $300 to a limited number of U.S. card holders who pay off their balances and close their accounts, the company said on Monday.

"We sent the offer out to a select number of card members," said Molly Faust, a company spokeswoman. "We are looking at different ways that we can manage credit risk based on the costumers overall credit profile."

lol - they'll swap the debt for another illusion

Card holders have until the end of February to accept the offer and must close their accounts in March or April. Each card holder will receive a $300 pre-paid American Express card.

[dangermouse]

http://uk.reuters.com/article/ousiv/idUKTRE51M6N920090223



lol - they'll swap the debt for another illusion

yeah and they probably owe a hell of lot more that 300 too lol

[fnulnu]

yeah and they probably owe a hell of lot more that 300 too lol

Naturally,or they wouldn't be serving their own interests.I wonder just how close to going tits-up AmEx really are though,to even try such an inducement?
Noone will go for this "deal" surely,then what?

I don't know why exactly,I get the feeling this is more significant than I realise atm.

[fnulnu]

Copy of the letter AmEx is sending out & the reaction of one card holder who recieved it can be found here:

http://www.dailykos.com/story/2009/2/18/1624/70697/683/699023

Take advantage of this offer to receive a $300 value prepaid card.

Dear Sucker Customer:

At American Express, we understand how challenging managing finances can be. That's why we'd like to offer you the opportunity to simplify your finances. Take advantage of this offer to reduce the number of cards in your wallet while earning a $300 value prepaid card to help with day-to-day expenses.

It's as easy as 1-2-3

1. Simply enroll in this prompotion by logging on to americanexpress.com/prepaidcardoofer and using your RSVP code PLZ SHUTE ME N0W before February 28, 2009. Enrolling in this promotion will automatically cancel your account.

2. Pay off your entire balance between March 1, 2009 and April 30, 2009 and we will send you a $300 value prepaid card to thank you.

3. Your prepaid card will arrive within 4 weeks, blah blah blah.

Take advantage of this offer today and start rewarding yourself for taking care of your finances.

Sincerely,

Jud Linville
President & CEO, Consumer Services
Member since 1989

P.S. - Remember to act fast, as all payments needs to be received and processed by April 30, 2009 to qualify for the prepaid card.


ETA: It maybe smacks of giving out gift vouchers when you know your business is heading for liquidation...