AmEx Sucks

My husband and I live in Arkansas. We recently joined a credit management service and got all of our credit cards put into one monthly payment. This is working well with all of our dept except for American Express. They refuse to lower the interest, and as a matter of fact, they raised it to 23%! We have 2 accounts with their Optima Card. We are paying approx. $550.00 per month to them and getting no where fast. What would happen legally if we stopped paying? I have spoken the their reps. on several occasions and they said that even if we pulled the accounts of of the credit management program our interest would stay at 23%. We will never pay it off at that rate. What should we do? If we decide to stiff 'em, can we get away with it legally? Help Needed and FAST!!!

[JETX]

I will put this real simple so that you can understand it....
1) Yes, you can stop paying American Express.
2) Yes, they will then sue you for breach of contract.
3) Yes, they will then get a judgment against you.
4) Yes, you will now owe them all the original amount, plus attorney fees and costs.
5) Yes, your interest rate will now be lowered to that allowed for post judgment interest. Whoops, that won't work.. Arkansas allows post judgment at the contract rate.

My suggestion... look at the card agreement. What does it say about the interest rate and what does it say about revising the rate.

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Steve Halket
Judgment Recovery of Houston
JRS.Houston@excite.com
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This is my PERSONAL OPINION and is not legal advice! Consult your local attorney for your specific situation and laws!

[HomeGuru]

<BLOCKQUOTE><font size="1" face=" Arial, Verdana, Helvetica">quote:</font><HR>Originally posted by 2muchdebt:
My husband and I live in Arkansas. We recently joined a credit management service and got all of our credit cards put into one monthly payment. This is working well with all of our dept except for American Express. They refuse to lower the interest, and as a matter of fact, they raised it to 23%! We have 2 accounts with their Optima Card. We are paying approx. $550.00 per month to them and getting no where fast. What would happen legally if we stopped paying? I have spoken the their reps. on several occasions and they said that even if we pulled the accounts of of the credit management program our interest would stay at 23%. We will never pay it off at that rate. What should we do? If we decide to stiff 'em, can we get away with it legally? Help Needed and FAST!!!<HR></BLOCKQUOTE>

Do not disparage Amex just because they extended you credit, you used their credit and now are unable to pay them back pursuant to the agreed upon terms and conditions. There is no law that states that the creditor must conform to a plan created by a debt reduction/credit management company.
I have no problems with this company.
If you really do not want to pay them back file BK Chapter 7.

I must disagree with the one person who replied and said not to disparage American Express. They're interest rates used to be called usery. They also are uncooperative in repayment plans. My advice to anyone interested in establishing new credit--never, never apply for a credit card with American Express. Rip-off artists.

I've always had a good relationship with American Express, even though they were unwilling to let Me keep My card after I filed bankruptcy even after I offered a reaffirmation agreement. They do seem pretty tough on anybody who gets even a little behind!

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-- All opinions which I post are Mine and Mine alone, though I'm willing to share.

[HomeGuru]

<BLOCKQUOTE><font size="1" face=" Arial, Verdana, Helvetica">quote:</font><HR>Originally posted by favoriteson1:
I must disagree with the one person who replied and said not to disparage American Express. They're interest rates used to be called usery. They also are uncooperative in repayment plans. My advice to anyone interested in establishing new credit--never, never apply for a credit card with American Express. Rip-off artists.<HR></BLOCKQUOTE>

You are entitled to disagree but consider the facts: when an individual applies for the charge card, the applicant agrees to abide by the terms and conditions of the use. Some of these conditions include agreement of the interest rates, payment amounts, payment due date, credit line etc. If the applicant does not want to accept these terms and conditions, then he/she should not apply and/or use the card.
While I understand that the financial condition of indivduals may change over time due to loss of employment, medical bills, economic conditions etc., keep in mind that the charge card company has no obligation to deviate from the rules. In other words the company does not have to by law reduce the interest rate, change the monthly payments to a lower amount, decrease and/or negotiate a reduced principal balance, accept a payment plan other than the one contracted etc.
While it may seem that the company would have a moral obligation to work with the users, there is no legal obligation. My point and response to the original writer was not to disparage the company for the writers own doing. It is the solely the responsibility and fault of the card user and not Amex, so do not put the blame on the company.

Lastly to favoriteson1 and the original writer, you are both in violation of the terms of use on this website. If you read the disclaimer (it is at the bottom of this page) the site expressly forbids disparagement.

[This message has been edited by HomeGuru (edited October 28, 2000).]