I have an credit card account with American Express that was opened up several years ago while still married to my (now) ex-husband. During the divorce, I had to ask American Express to close the account because the ex kept trying to use it! After the divorce, I called them to try to change my payment due date by 5 days. I work for the state and we only get paid once a month - on the last working day each month. The payment with American Express, now that I was on a single income, was going to be due 5 days before I got paid. They refused. They said because I closed the account, they wouldn't be able to change the due date. I struggled with them - paying late - assessing a late fee until September of 2008. At that time, American Express made headlines for their tactic of changing customers minimum payments and interest rates in lieu of a shaky economy. Low and behold, I was one of the customers they did this to. My minimum payment went from $215 a month to $357 and my 9.9% interest went to a whopping 27.99%! I called them about this and was, again, told that they couldn't do anything to help me because the account was closed. I called them several more times and was told a different reason each time varying from "it was changed because you've always paid late," to "we are trying to get customers to manage their debt better." I went ahead and paid them my $215 because that was all I could afford. I've done that each month. But now, on my January statement, my minimum payment is now $505 (due to finance charges). My average finance charge each month is $284.09 - more than my payment each month! I am never going to get ahead on this. I called them today, again, and begged them to help me out. All they would offer me is their "Care Program." I looked online and can find nothing on it. I just want to know if it is ligitimate. Basically it works like this...you pay a set amount each month - for me it will be $230. For 6 months, all fees are dropped and interest is zero. Then for 7-12 months, interest is 9.99% Then after 12 months, the interest will go back to what it was (in my case 27.99%) and all fees come back. I'm wondering if it is worth the effort. I am concerned that in a years' time after this program ends, I will be right back where I was. I really can't see how this program will help me. I've exhausted other means to pay off this debt. I checked on re-financing my home and was told by most companies that because I haven't been in it a year, they cannot use my equity (I bought my home with about 4,000 dollars of equity in it at the purchase date). I won't be in the home a year till this June. I tried to get a loan and could only get one for $5,000.00. That's not even half of what I owe American Express. I'm afraid to get that loan and give it to American Express since they have given me no hope of lowering that ridiculous interest rate. I need some good advice. Can anyone help me?
Have you tried credit counseling. They negotiate with AmEx for a low or no interest rate that will be something you can pay.
I did it years ago and it kept us from going bankrupt.
I did contact a credit counseling group online. They told me, up front, that unless I could give them a huge payment to go in an escrow account, it could take up to 2 years to reach a settlement with American Express. They offered to stretch out the payments for 4 years and it was a manageable amount. But, I cannot afford to pay them a big chunk up front. She said that was fine but it meant it would take a longer time to get enough money in escrow to be able to make an offer. In the meantime, American Express will continue to call and harrass and my credit will suffer. American Express "claims" that while I am in the Care Program, my credit will not be affected. I don't have that in writing, though. I have nothing in writing from them - it's all verbal. They are a big company but that doesn't mean they can be trusted. The credit counselling group also charges high fees up front to use their services. I've read all over the internet that this is illegal. I'm so confused. I wonder if I should just send American Express "some amount" each month. It won't be the amount they want, though. I thought maybe the Care Program could buy me some time till this summer when I might could be able to refinance my home and get a cash out for the rest I owe them?
If the Care Program is all you are offered, it sounds better than what is going on.
I would get a recorder on the line and call them and have them explain the details and get it on tape. It could protect you later down the line if they say they never said that.
Check the laws in your state. In Virginia only one party has to know the line is being recorded or be certain announce the fact that the conversation is being recorded.
Did you try transferring the balance to another credit card? It sounds like you are in a tough spot. Did you try getting a lower interest personal loan with your bank? I hope you get this solved that interest rate is just atrocious.
Hi,i work for a collection agency for American Express.Care program is a very effective and legal program wherein if you pay the min due for 6mnths you wont be charged any interst charges and if you wanna extend it then from 7-12 mnths your intrest will supress down to 9.99% from a whopping 27%.Try to pay the account within 6 mnths so that you wont be charged any interest.If it is going beyond 12 mnths,then you can re-enroll yourself in the care program.The most important part is that you have to pay the min due every mnth.If you miss one payment also you will be thrown out of the program.
Well talking about Debt cosolidation dont enroll yourself with them.They dont care about your credits.You can make minimum payments to them every mnth,but the account will be remaning on the credit bearaus for many years.
You actually get a letter in writing stating all the terms of the program once you choose to accept it. To clarify the 1st 6 months interest rate is 0%. The following 6 months interest rate is set at 9.99%. After 12 months it resumes the standard rate for that card. So for example, your original interest rate is probably between 11.99% to 14.99% that's what it will return to. The 27.99% was a default interest rate, which is not standard.
You actually get a letter in writing stating all the terms of the program once you choose to accept it. To clarify the 1st 6 months interest rate is 0%. The following 6 months interest rate is set at 9.99%. After 12 months it resumes the standard rate for that card. So for example, your original interest rate is probably between 11.99% to 14.99% that's what it will return to. The 27.99% was a default interest rate, which is not standard.
You actually get a letter in writing stating all the terms of the program once you choose to accept it. To clarify the 1st 6 months interest rate is 0%. The following 6 months interest rate is set at 9.99%. After 12 months it resumes the standard rate for that card. So for example, your original interest rate is probably between 11.99% to 14.99% that's what it will return to. The 27.99% was a default interest rate, which is not standard.
Well, it has to be standard, cause they pulled the same thing on me as well. In fact, I'm also going through a divorce, and my ex husband refuses to pay his share of the debt. So what now? I feel like walking away and not paying AMEX. I'd rather contribute that money to my retirement, especially since a 27.99 rate will never allow the debt to go down, so why the heck bother??
In fact, I thnk that people should all simuteanously stop paying credit cards and live on cash. Wouldn't we be much better off living on cash instead of repaying that outrageous rate back? Think about all the money we'd save at 29.99. I mean, it's time to stop paying the loan sharks, I mean the banks, and go ahead and buy yourself a new pair of shoes. Life is short! It's time to go ahead and put the pepperoni on top of your pizza. Well why should we continue to work I mean slave for the bank?? We are not the ones having the financial troubles, why the banks are! So let us put that pepperoni on top of the pizza and let us have our cakes and a brand new pair of shoes while we at it. I'm sure the local economy will revive itself on our cash-only spending.
What do you think AMEX will tell us if we all conspired not to pay them back? Will you still have your job? I know for a fact that banks depend on households, not the other way around, but you see, the banks have the majority fooled. That;s why people are scared and pay up the 29.99 percent fee. But if we all were to stop paying, you people will be on your knees!
Oh and don't say that banks will go after us, cause if we all stopped paying, oh boy, will AMEX be up to their foreheads in legal debt @ 350./ hour plus court filings, trying to hunt down each customer for a measily average 5K of debt each. LOL
Oh and I don't care if the "banks fail" cause honey, better them than me, right? Plus they can always count on our govt to bail 'em out, the rich greedy bastages.
Not to throw anyone under the bus or anything but the reason you have a default interest rate (which AGAIN is NOT standard) is because either you pay late OR you continuosly go over your limit. That is NOT Amex's fault. It also is a standard to lower it back down the first time it happens after we educate you.....meaning whatever offense you commited was continued for your interest rate to remain at 27.99%....
Ever heard of responsible borrowing? You should try it sometime.
It's really quite irritating that when I try to be nice and offer insider information about the CARE program so you CAN reasonably make payments and get out from under your debt you act like an idiot. I'm sure NO ONE at Amex MADE you use our card.....so try taking a little responsibility.
Regardless, I'm a consumer too. Everyday I do what I can to help people make smart educated decisions about their debt. Your rudeness is really not appreciated and out of line. I'm a single mother and I work my @$$ off to make sure my responsibilities are taken care of. Perhaps you should get another job to help you manage yours.
I know for a fact that banks depend on households, not the other way around, but you see, the banks have the majority fooled. That;s why people are scared and pay up the 29.99 percent fee. But if we all were to stop paying, you people will be on your knees! 
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