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Would you close your credit card account and pay it off almost immediately for $300? American Express is hoping that some of its cardmembers will do just that. AmEx is hoping that it can get out in front of what many expect to be the next shoe to drop in the credit market crisis: Credit card defaults. Bloomberg reports on some of the terms of the $300 AmEx offer:
People who got the offer to “simplify” their finances must pay off their entire credit-card balance by April 30, according to New York-based American Express. Enrolling in the program cancels a customer’s account and may lead to forfeiture of reward points or rebates, the company said on its Web site.
It’s an ingenious plan. Get as much money back from borrowers that you think might present a possible credit default risk. The plan also has the advantage (to American Express) of moving its credit card payments to the front of the line. If people have a choice between paying off the AmEx and getting $300 or making a payment on other credit cards, most folks are going to skip a few payments so that they can pay off the AmEx card.
What would you do? Would you take $300 to close a credit card account?
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March 10, 2009 at 9:08 pm
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