American Express Denies Redlining!

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.

In a New York Times article, “American Express Kept a (Very) Watchful Eye on Charges”, writer, Ron Lieber reports on his interview with Susan Korchak, a representative of American Express.

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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I've been a consumer bankruptcy lawyer for nearly 25 years. Since that time I have helped many people resolve their financial problems. I have been practicing law since 1986 and I am licensed to practice in all state and federal courts in the State of Louisiana. Because I am a sole practitioner, you know that your debt matters are being handled by me personally. In addition to my work with consumers, I am also frequently asked to speak at local seminars on bankruptcy law. I am member of the following organizations: • Louisiana Bar Association • National Association of Consumer Bankruptcy Attorneys • Bankruptcy Law Network My office is located at: 3920 General DeGaulle Drive, New Orleans, LA 70114 Telephone: (504) 368-4101

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