31 Jan American Express Denies Redlining!
In a previous article on this site, Is The Credit Card Industry Redlining? I wrote about actions by American Express where customer’s credit limits were lowered based upon where they shopped.
As previously reported, some American Express customers began to receive letters advising that their credit limits were being reduced due to the fact that: [o]ther customers who have used their card at establishments where you recently shopped, have a poor repayment history with American Express.
In Mr. Lieber’s article, Ms. Korchak states that “[t]he letters were wrong to imply we were looking at specific merchants…”
The New York Times article also reports that American Express now denies that there ever was a list of questionable establishments.
Mr. Lieber correctly asks about the language contained in the American Express letters to cardholders, and is told that it was all just a “big misunderstanding.”
It is, of course, unlikely that there was a “misunderstanding.”American Express simply made the mistake of putting in writing what it, and probably other credit card companies are doing: Redlining!
Mr. Lieber’s article is recommended reading.
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