[willowbird35]

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 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?

[Emland]

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.

[willowbird35]

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?

[Emland]

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.

[CreditTard]

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.

[hareesh1389]

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 won't be charged any interst charges and if you want to extend it then from 7-12 mnths your interest will suppress down to 9.99% from a whopping 27%.Try to pay the account within 6 mnths so that you won't 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 don't enroll yourself with them.They don't 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.

[nessa_27]

Willowbird35...

I work for Amex.

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.

[nessa_27]

Willowbird35...

I work for Amex.

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.

[dincher]

Willowbird35...

I work for Amex.

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? :mad:

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 buy yourself a new pair of shoes. Life is short! It's time to 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? :eek: 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! :cool:

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.

[nessa_27]

Dincher -

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 committed 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.

[nessa_27]

And just to set the tone... Amex was the FIRST to ENTIRELY pay back the TAFTA funds we borrowed from the government.

Don't take your divorce out on me or the company I work for.

[DownUnder]

Willowbird
Look,everyone at some point in their lives go through a tough time and in today's ecomony it seems more people are struggling than ever before so don't take your anger out on the ones that are trying to advise you and I think the amex care program is the best option. You asked a question and we gave you our opinion
If you don't like what we say then fly away!

[dincher]

Dincher -

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 committed was continued for your interest rate to remain at 27.99%...

You don't know what you're saying. For your information, I used to have a credit score of 800 AND a 16K credit limit with AMEX - both the Blue cash and the NYC card, and for some reason that is NOT my fault, they have decided to cut that whole entire credit and leave me with just a couple of dollars over what I've already spent. I think at the time, even though I had a 16K limit, I only used about 2K of it. So when AMEX reduced my credit limit, they reduced it to something like $2,010, or something like that, to make it look like I overspent or maxed out. SO UPON SEEING THAT, I IMMEDIATELY CLOSED MY ACCOUNT WITH THOSE BASTARDS, AND THEY STILL PILE UP NOT ONLY THE FREAKING INTEREST RATE BUT THE DAM FINANCE CHARGES.
The scumbags over at AMEX ruined my credit.

So because it looked now like I maxed out, oh yeah, they were able to now raise their interest rates. Over time, the other credit cards followed suit, making my minimum payments to about 250-300 a month of which I could not afford.

The question is this: I HAVE ALWAYS BEEN FREAKING RESPONSIBLE WITH MY CREDIT!! I HAVE A JOB IN FINANCE, AND I WORK FOR GOVERNMEMNT SO I NEED EXCELLENT CREDIT!! SO WHY HAVE THEY DONE THIS, THE MOTHERF%$^&'S!!

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.

Blah blah blah blah blah blah blah. I already work full time and go to graduate school in the evenings. What am I supposed to do? Drop out and lose the money I've already spent going there?? Clearly, you're an idiot. You lump ALL people together thinking that everyone's circumstances are the same - like the fornicator you are having children out of wedlock - you should try having sex while your MARRIED! I don't have that problem cause I was responsible - not going after every man like a cougar. :) (Yeah, so how does it feel like when someone lumps you in the same boat as those welfare mommies? ) So please know what you're talking about before you make some statement. Like I said, I had a perfect 800 credit score, made my payments on time (I had my payments set up automatically via computer with Bank of America) and AMEX ruined my credit. :mad: It also woudn't surprise me if AMEX changed the due dates on purpose to make people late with their fees.

[DownUnder]

Did we strike a nerve?
Don't blame us if you live Above your means
And now are crying... oh by the way walmart has plenty of tissues!

[dincher]

Did we strike a nerve?
don't blame us if you live Above your means
and now are crying..................oh by the way walmart has plenty of tissues!

No I have never lived above my means. I used a credit card to build my credit. Never went above $2500 I have never bought a car, never taken out a mortgage, but have only taken out student loan from CitiBank, which I paid IN FULL.

Oh by the way, Downunder... What goes around comes around. Laugh at my unfortunate circumstance.

[dincher]

Oh and by the way. I'm not "crying". I just won't pay. Just leave those idiots with their high interest rates.
As a person who has a stable job, I'll just save my money and pour it into my investments (i.e. stock market, etc).

I'll open up two bank accounts in two different banks: One for direct deposit, and the other to make payments using a bank issued debit card. That way, I can use the debit card on the net, or around without fearing that I'll lose money in case my number gets stolen.

I"ll also borrow againt myself :) . I'll be "the bank of dincher" as I start to accumulate my investments. The credit cards (the loan sharkers) can be sent to hell.

I advise every single American to do the same. If we can all send the credit cards to hell, and invest with our own money, then they'll get down on their knees and lower interest rates.

Oh and also, please don't pay those stupid debt collectors! If they send you a letter stating that you need to pay just X amont of dollars by a certain time DON'T DO IT! All they want to do is reset the clock on payments, and have you re introduce a new payment contract with them because once you pay them, you are legallly responsible to keep paying them! So don't do it. Ignore the debt collectors, and start investing your own money. By the time the debt collectors have your case, your credit is already ruined, so there is no point in paying these thugs. Let the swindlers lose money, cause you know, they bought your debt from the bank at a significantly reduced price and they have the audacity to want to collect the face value. Haha, let the joke be on them.

[DownUnder]

You are one pitful soul! I was not making fun at your unfortune circumstances.I was simply voicing my opinion. You borrowed it and therefore you SHOULD pay it back! I know bad things happen in life but get over it, find a soultion to the problem you created! And quit blaming other for your screw ups! No one forced you to sign up for a credit card! You poor soul did that yourself!

[dincher]

you are one pitful soul! I was not making fun at your unfortune circumstances.I was simply voicing my opinion. You borrowed it and therefore you SHOULD pay it back! I know bad things happen in life but get over it, find a soultion to the problem you created! and quit blaming other for your screw ups! No one forced you to sign up for a credit card! you poor soul did that yourself!

Of course you're demeaning my siutation. Look at the original post, you numb nuts. This sort of thing is happening to everyone. Sure I borrowed. I borrowed 2K and now I have to pay back 10k through no fault of my own. No thanks.

Here's some helpful AMEX reading to clear your narrow mind. And after you finished reading these reports, then you can comment:


Recession is forcing American Express to reduce credit lines for no reason


My3cents.com - American Express Complaint - Amex Ruins My Credit Score, Blue Credit Card

Rip Off Report: By Consumers, For Consumers American Express Lowered my credit limit and closed my account without my consent - unbelievable!!! LOS ANGELES California


CardRatings.com • View topic - AMerican Express unfair practices



Now, who won this debate??

[dincher]

OOOOO OOOOOO OOOOOOO!!

CLASS ACTION LAWSUIT TO BE FILED AGAINST AMERICAN EXPRESS FOR REDUCING PEOPLE'S CREDITS!!!



My3cents.com - American Express Complaint - I smell class action suit coming - Who's in, Blue Sky Credit Card

Now who won?? You people over at american express need to sit your asses down, cause we're NOT going to take it! You try to blame *US* for creating this mess?! HELLLL NO.

And you people better start looking for another job, cause you know that when we win the lawsuit, oh honey, they're going to start laying off your asses.

[dincher]

Proof that AMEX engages in fraudulent practices:

Class action lawsuits against American Express:

The Law Offices of Jon E. Drucker and three other firms have filed a class action lawsuit (the "Action") against Ameriprise Financial, Inc. The Acton is pending in federal District Court in Minneapolis, MN, and has two basic allegations: 1) Ameriprise breached its franchise agreement by changing its name from the well-known "American Express" to the unknown "Ameriprise," and 2) both the franchise agreement and Ameriprise Financial practices are in need of drastic overhaul, as they violate the Minnesota Franchise Act, particularly the Act's provisions governing what is "unfair and inequitable." The Action seeks damages as well as injunctive relief to put an end to the Company's unfair and inequitable practices.
http://www.amexsux.com/pdfs/ameriprise_complaint.pdf




The Law Offices of Jon E. Drucker has filed a class action lawsuit with Appendix A, Appendix B, Appendix C (the "Action") against American Express Financial Advisors in federal District Court in Arizona. The Action alleges that American Express Financial Advisors commits fraud and breach of fiduciary duty in the sale of financial plans to clients.
http://www.amexsux.com/complaintAEFA.pdf


The class action alleges that American Express Financial Advisors has overcharged clients with respect to the 12b-1 fees. For example, in the AXP New Dimensions Fund the fees have actually increased faster than the growth in assets. Moreover, the suit alleges that the overcharging of 12b-1 fees benefits American Express Financial Advisors at the expense of the clients.

http://www.amexsux.com/gallus.pdf


On March 4, 2004, Milberg Weiss filed a complaint alleging violations of the federal securities laws by American Express Company and certain of its officers and/or directors. The class action was commenced in the United States District Court for the Southern District of New York on behalf of clients of American Express Financial Advisors, Inc. who purchased American Express Funds between March 10, 1999 and February 9,2004, (the "Class Period" ).

If you were a client of American Express Financial Advisors, Inc. and purchased American Express mutual funds between March 10, 1999 and February 9,2004 you may qualify to serve as a lead plaintiff in this action. Should click here to contact us.