Articles

I’m no fan of American Express but …

In Uncategorized on October 5, 2010 by reibroker Tagged: , , , ,

I’m also no fan of Big Government taking on private enterprise when it is available as a CHOICE to consumers. Especially consumers who qualify for the services that not just anyone qualifies for.

My personal beef is that AmEx closed my line (no maximum limit) with no warning because of the business I am in. I had been a faithful “member” for quite some time and had a ship load of points left to spend for Christmas and that was going to be a significant part of my gifting. But that’s personal and why I’ll never intentionally support AmEx again.

This story is completely different and I probably side with AmEx so long as they are not stiff arming (thugging) businesses who choose to accept the card. When I was in businesses that accepted cards I never accepted AmEx because of the high cost of doing so.

Amplify’d from www.wallstreetjournal.com

U.S., AmEx in Antitrust Suit

WASHINGTON—The Justice Department slapped American Express Co. with a civil antitrust suit after the credit-card company refused to join an industrywide agreement to allow merchants to steer customers toward cheaper forms of plastic.

AmEx’s decision to fight the issue of steering means most consumers won’t see any immediate difference when using cards. Many merchants will still be bound by American Express’s rules that prohibit them from discouraging customers from using AmEx cards.

The case is the latest to take aim at the credit-card industry, which is struggling to recover from record delinquencies and defaults. Banks that issue cards are under fire for raising fees and cutting credit lines during the financial crisis; now they are subject to a new law that curtails some of the industry’s practices.

Read more at www.wallstreetjournal.com

 

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