I just received a form letter from American Express telling yours truly that they were increasing my interest rate. Its rationale, "Like all companies large and small, our pricing has to be responsive to the business and economic environment. As a result, we have found it necessary to increase rates and fees."
Let's analyze what American Express, and other credit card companies are doing. They get money for just about zero percent from the Federal Reserve System, because they are a bank holding company. Then, they want to lend it to me at 15% plus, depending on the prime rate, when my FICO score is 800. In other words, American Express wants individuals like myself that are not a credit risk to subsidize all the bad investments that they have made along with all the credit defaults that are occurring. Wonderful! American Express has been bailed out by taxpayers; now they want its credit-worthy account holders to bail them out. This is just another perfect example of rewarding failure and penalizing success.
For those of you that know me, you know that I will truly have a conversation with American Express.
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