Has American Express Lost Their Mind?

Monday, January 11, 2010

Has American Express Lost Their Mind?

The stock price of American Express is now about three times higher than it was a year ago. Now that they’re flush with cash again, does it mean they’re going to make the same mistakes that got them in trouble in the first place?

Has American Express Lost Their Mind

February 2009:
American Express was so anxious about the credit crunch, they actually started paying many of their cardholders up to $300 to pay off their balances and cancel their credit cards. They did this for the American Express Blue Cash, Blue Sky, and regular Blue cards.

January 2010:
After paying these cardmembers up to $300 to cancel their accounts, apparently they want them back! Right now they are actively marketing the American Express Blue Cash and American Express Blue Sky cards… the same ones they paid people to get rid of a year ago!

Is this a smart business move or does American Express just have an extremely short memory?

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