American Express Pays off Clients to Pay Balance/Cancel Account

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John W. Sharbrough, of the Alabama Consumer Law Blog, posted an article relating to American Express’ attempt to bribe clients to pay off their debt.

The company is offering customers as much as $300 to pay off their balance and and close their card. However, the article warns that this is an attempt to “subvert bankruptcy laws.”

“What AmEx is trying to do is move to the front of the line in terms of getting paid back by customers who owe debts to multiple lenders”, said Micheal Talano, an analyst at Sander O’Neill & Partners. “They clearly grew loans faster than their competitors in the years leading up to this financial crisis.”

Ironcially, American Express just recieved $3.39 billion “from the U.S. Treasury to boost its capita….But apparently it had no intention to use that money to increase lending” according to Sharbrough.

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