American Express £20 "1 year dormancy" penalty.

[eliquant]

Over the weekend a letter from American Express arrived stating that as from 1st October with affect, my credit card will be charged £20 if it has not been used in the previous 12 months (which it hasn't).

The news tells us that this only applies to American Express Platinum card users but that's bull as my card is an American Express Blue card.

Yet another scam by people in finance.

How many people are at zero balance on their AE cards who will miss this and be in debit by £20 and then miss the 1st, 2nd, third and 4th months of repayment of this £20 thus incurring further penalties.

I'm going to spend something on the card now on amazon.co.uk or play.com but be warned (and this is every year).

[sweetandsour]

Over the weekend a letter from American Express arrived stating that as from 1st October with affect, my credit card will be charged £20 if it has not been used in the previous 12 months (which it hasn't).

The news tells us that this only applies to American Express Platinum card users but that's bull as my card is an American Express Blue card.

Yet another scam by people in finance.

How many people are at zero balance on their AE cards who will miss this and be in debit by £20 and then miss the 1st, 2nd, third and 4th months of repayment of this £20 thus incurring further penalties.

I'm going to spend something on the card now on amazon.co.uk or play.com but be warned (and this is every year).

Aren't all credit card companies doing this now they have been forced to reduce their late payment charges?

I thought that all contractors had Centurion Cards though so I wouldn't have thought they would be concerned about this.

[OwlHoot]

Over the weekend a letter from American Express arrived stating that as from 1st October with affect, my credit card will be charged £20 if it has not been used in the previous 12 months (which it hasn't).

The news tells us that this only applies to American Express Platinum card users but that's bull as my card is an American Express Blue card.

Yet another scam by people in finance.

How many people are at zero balance on their AE cards who will miss this and be in debit by £20 and then miss the 1st, 2nd, third and 4th months of repayment of this £20 thus incurring further penalties.

I'm going to spend something on the card now on amazon.co.uk or play.com but be warned (and this is every year).

That's nothing - In the US the Government grabs funds in dormant accounts.

I know someone who put a grand or two in a US bank account, intending to use it when he returned there. But a couple of years later, the account had been closed and the money was gone with no way to reclaim it!

[centurian]

Over the weekend a letter from American Express arrived stating that as from 1st October with affect, my credit card will be charged £20 if it has not been used in the previous 12 months (which it hasn't).

The news tells us that this only applies to American Express Platinum card users but that's bull as my card is an American Express Blue card.

Yet another scam by people in finance.

How many people are at zero balance on their AE cards who will miss this and be in debit by £20 and then miss the 1st, 2nd, third and 4th months of repayment of this £20 thus incurring further penalties.

I'm going to spend something on the card now on amazon.co.uk or play.com but be warned (and this is every year).

Either put a normal purchase on it (and pay it off immediately), or alternatively just cancel the card before the 1st.

They do have overheads to pay and if you are not using the card, you are costing them money, so I can understand their position.

Remember last year when Egg said they were cancelling the accounts of 'bad' customers. However, their definition of 'bad' meant customers they didn't make money on - specifically customers that always paid their due in full every month.

At least AE have told you in advance, so they are giving you the choice. Can't really see a problem with that.

[centurian]

I thought that all contractors had Centurion Cards though so I wouldn't have thought they would be concerned about this.

You called

Annual fee of £1800 is easy enough to swallow and the minimum spend of £10K per month covers my expense claims

[SuperZ]

Remember last year when Egg said they were cancelling the accounts of 'bad' customers. However, their definition of 'bad' meant customers they didn't make money on - specifically customers that always paid their due in full every month.
.

Well they never closed mine and I`ve had it for years - paying it off in full each month. I think Egg still make money from retailers when you make a purchase on your card. So if you spend a decent amount each year and put it on you card they`re still making money from you, even if you pay off the balance in full each month.

So maybe a bad Egg customer is someone who pays the balance off each month and doesn`t use the card often. Arguably, that does make a bad customer . I would say such a person is higher risk than someone who pays the full balance of £400 a month each month for example

[centurian]

So maybe a bad Egg customer is someone who pays the balance off each month and doesn`t use the card often. Arguably, that does make a bad customer . I would say such a person is higher risk than someone who pays the full balance of £400 a month each month for example

They gave the impression to the media (and others) that 'bad' customers meant risky / highly indebted customers.

But it had absolutely nothing to do with risk management at all. They were basically offloading unprofitable customers. Again, can't see an issue with it - except for the fact that they were not being upfront with people.

[Clippy]

At least AMEX pre-warned you.

MBNA withdrew my Platinum card last year without notice due to lack of use.