American Express back in the CHARGE CARD business again?
Consumers began to use credit cards for small ticket items, drug stores, grocery stores, $5.00, $10.00, $30.00 items. Greed took over the credit card companies in the same way it did banks who were giving out mortgages with NO income verification and low credit scores.
The 2000′s seem to be a frenzy of competition creating less and less restrictions on lending money for mortgages and credit cards. I recall the Master Card commercial showing a wonderful experience (which of course costs money) and then the voice over coming out of the TV screen would say “Priceless” and the Master/Visa logo would appear.
Amex began to compete in 2003 offering all types of credit cards, business, personal, start out cards for the “pre-affluent” urban professionals, the “Nest” card for Newlyweds, & even the engaged card the “Knot”.
Amex is now feeling the pain of it all. Defaults, late payments, and the fear that motivates them to cancel business lines, reduce limits, and shut down credit cards. They are now going back to focusing on CHARGE CARDS and the old fashioned pay off balances monthly with annual fees. Read more from the Wall Street Journal article:
http://online.wsj.com/article/SB123595172956305055.html
last edited on March 2nd, 2009 at 6:03 PM
