American Express Pays Some Card Holders to Close Their Accounts
Reuters reports that American Express is offering $300 pre-paid American Express cards to some of its customers if they will close their accounts. American Express made the offer to a limited number of its card holders.
"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."
The company did not say how many card holders would receive the offer and did not disclose the total of their card balances.
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.
American Express, often seen as catering to relatively wealthy customers and companies, has been expanding its credit card business in recent years by reaching out to a wider range of clients.
American Express reported last week that its credit card delinquencies climbed in January. The accounts American Express are trying to close are probably the ones they are concerned about. The Reuters article says other credit card companies are reducing the credit lines of some U.S. customers. Credit companies are also mailing less new credit card offers.
