Trend - Paying Customers To Leave
March 9th, 2009
Not so long ago, credit card companies were throwing money at people to get them to sign up. Now, as they struggle to contend with a wave of defaults, they may pay you to leave. American Express, is actually offering some card members $300 to pay off their remaining balance and close their accounts.
Selected members received letters with an RSVP code which, when submitted online, immediately cancelled their card. Balances still have to be paid off, and if this is done within a certain time frame they receive a $300 Amex prepaid gift card. If they do not pay off their balance in time, they do not get the gift card and their accounts remain closed.
It’s no secret credit card issuers have been working hard to close accounts. But this is the first time a major issuer has actually tried to speed up the process. American Express won’t say how many members have opted to cancel their accounts. It is not offering cancellation to corporate cardholders.
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