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"American Express Doubles Some Card Repayments"

By admin | January 25th, 2009 | Balance Transfers

A major credit card provider is said to have secretly doubled monthly repayments for its customers according to a recent report.

The report claims that American Express has doubled the amount of money that it wants repaid each month from some of its customers that have signed up to a low interest life of balance transfer credit card. The move could see many consumers being pushed into default as the effects of the global credit crunch and the recession continue to impact on household finances.

The move has caused concern amongst many that despite measures that were discussed between the credit card industry and government officials recently, credit card firms are still finding ways to get more money from borrowers in order to bolster their own finances at this particularly challenging time. The report claims that the minimum repayments on some of these life of balance transfer credit cards has been increased from 2.5 percent to 5 percent recently.

One official said that the move may be overlooked because it was only applied to existing customers and not new ones. He said: ‘If it doesn’t affect new customers, it doesn’t get published; nobody trackers the rates and agreements of existing customers. Undoubtedly, there are cases of customers losing out due to secretly raised rates, minimum repayments and cash advance fees. There has been an element of card providers changing agreements to bring in increased revenue steams lately. It’s almost as if they are looking at some customers as an ideal way of raising cash.’

One customer stated: ‘We think this is just underhand. We took out the cards because we thought the repayments would be set at a good rate. In fact, its outright discrimination. They should either make the changes for everyone across the board or none at all. People are being hard done by here.’

Tags: american express

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