Cost justification to renew my Amex Charge Platinum

[Jane-Doe]

It's true. I did try to bluff and in this case failed big time! However, I was not happy with the $900 annual fee given the reduction (my perception) on benefits over the past 12 months. I could have ditched and gone elsewhere but I am still mindful of my 10 year track record with the brand. I would prefer to maintain this and of course, there is always the opportunity to renegotiate at another point in future.

Cheers,
sighing.

AMEX does not appear to care about loyalty. It appears that my 15+ years' membership counts for nothing - I'll be cancelling. Renewal fee is due end of October and all my monthly debits and spending have already moved to Citibank.

From your experience I will expect a non-negotiable cancellation.

 

[burmans]

Empty threats backfire. I would threaten only if I was prepared to ditch.

My suggestion would be to pay the fee and ask for MR points. Amex would likely give points.

From the original note I am not sure he actually did make an empty threat, he was calling to say that he didn't like the changes and was considering closing. The trouble here is that we all know that 80-90% of the time CC providers do negotiate. I have made very similar calls many times, sometimes with the intent to cancel, sometimes just to see if there was anything they can do to entice or persuade me to stay. 9 times out of 10 in the past (including Amex) they have done something (waived or reduced fees, offered bonus points) and once (also Amex) no go and cancelled.

Have also done similar (successfully) with home loans. I personally would suggest you put concerns in writing rather than just calling up, this ensures it gets in front of the right people, i.e. their retentions unit. Only retentions unit can make deals so getting an "audience" with them is very important, general CSR have very little capacity to move other than just cancel.

But yes, the answer may well be, OK I'll close your account. In that case I'd be saying I want to think about it or asking if they can recommend alternatives (very surprised they didn't do this either). You should only ditch if you want to, sounds to me that OP was actually heading that way anyway but upset to be forced down that track!

 

[sighing]

From the original note I am not sure he actually did make an empty threat, he was calling to say that he didn't like the changes and was considering closing. The trouble here is that we all know that 80-90% of the time CC providers do negotiate. I have made very similar calls many times, sometimes with the intent to cancel, sometimes just to see if there was anything they can do to entice or persuade me to stay. 9 times out of 10 in the past (including Amex) they have done something (waived or reduced fees, offered bonus points) and once (also Amex) no go and cancelled.

Have also done similar (successfully) with home loans. I personally would suggest you put concerns in writing rather than just calling up, this ensures it gets in front of the right people, i.e. their retentions unit. Only retentions unit can make deals so getting an "audience" with them is very important, general CSR have very little capacity to move other than just cancel.

But yes, the answer may well be, OK I'll close your account. In that case I'd be saying I want to think about it or asking if they can recommend alternatives (very surprised they didn't do this either). You should only ditch if you want to, sounds to me that OP was actually heading that way anyway but upset to be forced down that track!

You nailed it! That's precisely my thinking. My mistake here was to make a decision on the first phone call - something I rarely do. Better option would have been to escalate to a more senior representative.

cheers,
sighing.

 

[lovestotravel]

9 times out of 10 in the past (including Amex) they have done something (waived or reduced fees, offered bonus points) and once (also Amex) no go and cancelled.

Have you called Amex this year ? This year is VERY different!

Have also done similar (successfully) with home loans. I personally would suggest you put concerns in writing rather than just calling up, this ensures it gets in front of the right people, i.e. their retentions unit. Only retentions unit can make deals so getting an "audience" with them is very important, general CSR have very little capacity to move other than just cancel.

Wrong

 

[sighing]

Have you called Amex this year ? This year is VERY different!

Do you have any opinion why they are so tight this year compared with previous?

Thanks...

 

[gibspmuh]

It might just be a coincidence, but changes have certainly conincided with the appointment of a new Managing Director for AMEX Australia back in February. Even when I called to cancel my Platinum Charge Card in May I was offered a $450 renewal (which I declined), but it seems since then they've tightened things up even further. I'll be interested to see if Diners Club continues to awaken from its slumber, AMEX is certainly opening the door to give them an opportunity to get back into the market anyway.

 

[mockopalooza]

Have a plat charge card, plat reserve cc (free with charge) and a plat edge card. Just called to ask to cancel the charge card and reserve card as annual fee was due soon.

Was asked why, and told them it was due to watering down of insurance and reduction in MR points earn rates. Guy had a little try of explaining some of the other benefits to which I responded were of little to no value to me. Despite the last charge card statement being $60,000 and probably spending $300-400k per annum, he did not bite on a fee reduction/waiver. After i prompted the possibility of a gold charge card or other product, he explained that they would all still have significant fees and proceeded to immediately cancel my cards. Interesting strategy amex have...

 

[Pukka]

Have a plat charge card, plat reserve cc (free with charge) and a plat edge card. Just called to ask to cancel the charge card and reserve card as annual fee was due soon.

Was asked why, and told them it was due to watering down of insurance and reduction in MR points earn rates. Guy had a little try of explaining some of the other benefits to which I responded were of little to no value to me. Despite the last charge card statement being $60,000 and probably spending $300-400k per annum, he did not bite on a fee reduction/waiver. After i prompted the possibility of a gold charge card or other product, he explained that they would all still have significant fees and proceeded to immediately cancel my cards. Interesting strategy amex have...

They are either so arrogant that they think most customers will automatically renew to keep the perceived status that Amex has whatever they do to the card benefits

Or

They have suicidal tendencies

I'm not sure which lol. Personally I don't think it's a good move to ditch really good customers who spend lots and have a good repayment record, actually I think it's just plain stupid.

 

[k3nnis]

I have the same 3 cards as you at the moment. Mine is not due for renewal until July 2013. So we'll see if anything improves by that time. Maybe the new GM at Amex told all their callcenter staff to not bite and just cancel the customers cards if they wish to....

Have a plat charge card, plat reserve cc (free with charge) and a plat edge card. Just called to ask to cancel the charge card and reserve card as annual fee was due soon.

Was asked why, and told them it was due to watering down of insurance and reduction in MR points earn rates. Guy had a little try of explaining some of the other benefits to which I responded were of little to no value to me. Despite the last charge card statement being $60,000 and probably spending $300-400k per annum, he did not bite on a fee reduction/waiver. After i prompted the possibility of a gold charge card or other product, he explained that they would all still have significant fees and proceeded to immediately cancel my cards. Interesting strategy amex have...

 

[kamchatsky]

I also have all 3 cards (Edge, Reserve, Charge), and I have already converted my Edge to Affinity Gold CC, will cancel Charge card mid next month and also convert Reserve to Affinity Edge card.


I think what they are doing is get rid of all the unprofitable customers (even ones with large transactions) as it costs Amex a lot more money than banks to raise funds in the market these days after GFC. Better off letting banks do this and they piggyback it via bank's dual card programs. It is much more profitable this way.

 

[wxxnxs]

They are either so arrogant that they think most customers will automatically renew to keep the perceived status that Amex has whatever they do to the card benefits

Or

They have suicidal tendencies

I'm not sure which lol. Personally I don't think it's a good move to ditch really good customers who spend lots and have a good repayment record, actually I think it's just plain stupid.

Having a good repayment history/record is definitely not a good customer for them, as they can not gain a cent of interest from you.

 

[Foreigner]

Having a good repayment history/record is definitely not a good customer for them, as they can not gain a cent of interest from you.

I don't believe so. Do you think Amex would rather have a customers who don't pay on time, with whom they incur time and costs in chasing up arrears?

 

[Jane-Doe]

They will lose their charge-card customers - who pay promptly each month, and pay a high yearly fee.

There's no good reasons for me to remain. My spending has already moved to Citibank - so what was a yearly spend of over $90K plus my (centurion) fee of $4300 is now with Citibank. Not the fee though, Citi charges way less.

 

[kpc]

They will lose their charge-card customers - who pay promptly each month, and pay a high yearly fee.

In this calender year, I have put in excess of 170K on the charge card....a lot of theses expenses / charges will only attract 0.5 pts per $ spent from Oct 1...what do you think I'm going to do AMEX?:evil:

 

[Jane-Doe]

Yes, if I total the travel, and all regular household expenses, it would be well over 90K. I also avoid the surcharge now that the payments are by Visa.

 

[wxxnxs]

I don't believe so. Do you think Amex would rather have a customers who don't pay on time, with whom they incur time and costs in chasing up arrears?

Indeed, interest charge is all financial institutions' cash cow. Just think about your home loan.

 

[Foreigner]

Indeed, interest charge is all financial institutions' cash cow. Just think about your home loan.

Think about bad debts, too. I've got Amex doing credit checks regularly, almost bi-monthly. If interest was their primary focus, they would dish out increased limits all around but from what I read on AFF, many members whinge about Amex cutting back limits. Anyway, you're entitled to your opinion.

 

[nlagalle]

Having a good repayment history/record is definitely not a good customer for them, as they can not gain a cent of interest from you.

Considering the Charge card needs to be paid in full each month, they never make any money from interest - they made their money from merchant fees. And the Charge card has been around a lot longer than the Credit cards...

 

[lovetravellingoz]

he explained that they would all still have significant fees and proceeded to immediately cancel my cards. Interesting strategy amex have...

Looks like my free for life Cit Plat will be getting more use.

With Citi they have also just waived all fees as well on my Citi Business....and another Citi Plat..and Citi Business that my wife had. So the Amex Rep is wide of the mark.

The devaluing of the earn rate puts them behind Citibank on many spend items that would only earn at 0.5.

There also seems to be a lot less Amex Promos at present.

It has been a golden period the last several years with Amex......so looks like the candy may have just about finished.

 

[simonsyd]

Just cancelled plat charge card
Annual spend in excess of 150K
No attempt to retain account - agent cancelled without question. What are these guys up to? They must be told just to cancel accounts.
Citi must be laughing, all my Amex spend plus ATO will now go onto select card