Do you have an American Express card? Did you get a letter in the mail from Amex raising the interest rate on your variable APR card. In fact, I received this letter in the mail myself for my Blue card a few years ago, back in 2009. Here’s what that letter said:
- Interest rate is being raised on cash advances and purchases
- If you have a “penalty rate” on your account because of a late payment, the interest rates are going up
- The late fee is being increased
Finally, under these bullets, they say they are “pleased to let you know” they will no longer be charging you an over-limit fee.
Finally, under these bullets, they say they are “pleased to let you know” they will no longer be charging you an over-limit fee. Here was my blog entry back from Dec. 2009 discussing this:
Amex, I must say although I remain a huge fan, I am a bit disappointed with this particular situation. I don’t even carry a balance so this doesn’t effect me, but having my APR go to 13.99% + the prime rate on top of that seems awfully high in my opinion. Why this bothers me so much is because I feel bad for the other equally responsible cardholders out there who have been hit with this big hike. I understand that the recent credit card reform legislation as well as the recent losses from defaults is making it a bit more expensive to do business for now, but I don’t feel accounts with perfect histories should be given this much of an increase – a 1-3% increase seems more reasonable to me.
I’ve been an American Express holder for 7 years (multiple cards). I’ve never had a single late payment, not only on my Amex cards, but on any credit card or bill in my entire life. My FICO is close to 800. A few years ago when I was in a coma and knocking at death’s door, one of the first things I said to my mother when I awoke from it was to make sure my bills were paid so they wouldn’t be late. That’s the kind of customer I am – more concerned with my obligations to paying bills and my credit history, than the fact that I was crushed in an accident and was told I was about to die. Should responsible customers like myself and others like me be rewarded with such drastic APR hikes like this?
It’s now 2011. Have you experienced any similar situations with American Express raising your card’s interest rate?