Cut Up Your AMEX Card, Get $300

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Courtesy of The Huffington Post

American Express is looking for any way to get rid of additional credit exposure by paying current card holders $300 to cancel their credit card account. That’s right, paying to get rid of card holders. They’re doing it via a targeted “promotion” that select members will receive in the mail. If you get this offer it basically means “you’re a crappy credit risk.”

It makes sense, American Express has been hammered (like the other credit card companies) with rising delinquencies and bankruptcies which are wiping out millions of dollars in owed debt. (Hey issuing unsecured debt can be a real b&$& sometimes.)

More from The Credit Matters Blog and how to trade your card for cash if you do get the letter:

Well, this sure is a different kind of deal. Instead of paying you a bonus to join, New York-based American Express will give you a $300 American Express prepaid card if you agree to say goodbye. American Express says that it is making this “deal” so that customers can “simplify” their finances. Sure. The offer, which isn’t available to everyone, requires a 14-digit RSVP code. Customers are receiving this offer via U.S. Postal and email.

Let’s get something straight here. If you receive this offer, American Express is telling you something: please leave. Note also that in order to get the $300 prepaid card the customer MUST pay off his or her entire balance by April 30, 2009. If the balance is not paid off by April 30, then you will not receive the $300 card. But your card will still get closed. That’s a heck of a deal.

When do we started getting paid to pay off our mortgages?