American Express is increasing annual rates on over a million credit cards, according to a document form Bloomberg's Elizabeth Dexheimer.
The company has sent letters to affected clients, saying they pay less than cardholders with similar credit reports at other companies, Bloomberg reports.
The cardholders will now pay at least 12.99% in annual rates, a two.5% increase on average.
An American Express spokesperson told Bloomberg the changes will affect "new purchases and balance transfers, and they’re no higher than consumers would get today in the event that they apply for a comparable AmEx card." They will also affect some existing co-branded credit cards.
Recent news out of American Express has Wall Street nervous about the company, and the stock has plunged  13% year-to-date.
Last Thursday, AmEx lost an antitrust lawsuit over whether it could cease merchants from asking customers to make use of other credit cards.
Earlier in February, American Express announced the finish of its co-branding agreement with Costco, saying it was "unable to reach terms that would have made economic sense for our Company and shareholders." It had also lost a similar agreement with Costco in Canada.

And along with its fourth quarter earnings results which showed revenues were dented by the strong dollar, it announced that it was shedding four,000 people as part of a restructuring method that will cost $313 million.

Post a Comment