American Express paying people to clost their accounts

By Michael Boshnack

This article explains the new measures credit card companies are taking to reduce risk


"American Express, the “don’t leave home without it” people, are paying customers $300 to pay off their account balances and close their accounts. This comes after the company has spent the better part of a decade trying to grow its customer base. The number of accounts over the last few years have grown from 65 million in 2004 to 92 million last year.
Why would they try to unload fee-paying customers? Analysts say it is a fear of defaults — that is people falling behind on payments and never catching up. Already, those default rates have soared to 8 percent. American Express didn’t return our calls for comment."

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