American Express late on payment to publishers

Do as I say, not as I do.  In a nutshell, that is the latest message coming from American Express, the financially troubled credit card company.

Beleaguered by all sorts of problems ranging from enraged customers to declining profits, American Express finds itself fighting yet another fire that raises serious questions about its cash flow.  In a curt letter to its affiliates –online publishers who promote American Express products through banner ads– there is an apology for “delayed” payment.  The letter, which came directly from the American Express team at LinkShare, reads:

Dear Publisher,

American Express has confirmed that the November commission payment is delayed. American Express' accounting team is working very diligently on securing the payment so that you have it as soon as possible. We appreciate your patience on this issue.

Thank you
LinkShare Affiliate Team

What irony!  Try writing a letter like this to American Express when you are a behind on your payment, and I guarantee you’ll receive a merciless, late fee.  I am near speechless with shock. 

Comments

[jm74]

All of their affiliates should turn them over to collection agencies!

[DLF]

Where was Chenault on capitol hill today for the House Financial Services Committee hearing? MIA. I wonder.

[Mary Simms]

We should all be more careful in reading the fine print in these long agreements. They know and are counting on the fact that most of us don't read them. Think about it. If you were trying to get something by someone, wouldn't you make it as esoteric as possible? Sometimes the letters are so convoluted with legalese and complex language/words that the only thing I understand is that I don't understand. This is all going to change the way I look at things. I am getting a heavy dose health skepticism.

[Kumar]

Shameful! Customers are doing their best to maintain good standing with AMEX and here is AMEX sending late payments!

[Linda]

Wanted to add that AMEX response is always..."it is in your service agreement." And who reads those and of course, this is what they have banked on.

Part of the fix for consumers would be for congress to make it law that creditors explain the rules of borrowing up front, short and sweet, with limits on how often they can make changes. By burying tiny print in a lengthy agreement that consumers won't read and/or cannot understand, we have become prisoners. The game is such a trap. And as soon as I can pay off the balance I intend to cut up my AMEX and never, ever use it again. I have also quit using all of my other credit cards except for those with my credit union. Once they are paid in full, I pray that before I ever need to say charge it again, something will have been done to these criminals to prevent this entrapment.

[Aaron T.]

This reeks of hypocrisy. Just hope that the checks don't bounce now. Ha ha.

[Srinivas Annadi]

Kevin - Seems like Amex is going nowhere zone and don't know what to say about it.

Funny part is, Amex has to pay money to publishers, still Amex can ask its publishers to wait for little more time. But we pay interests and late fees' and cannot even ask for excuses for anything and for no reason Amex has the ability to do all sorts. This is unbearable and unacceptable!

I know we cannot compare though... :)

[Jared]

that's funny, they just called me last week to let me know they hadn't received a payment for january. first i'd heard of it. no letter, no email, which they claim i would have gotten because i'm on paperless billing, which they also apparently aren't aware of because i get those too. why was i late? because i had lost my card and just got it replaced and i forgot to update my bank's auto-pay. completely my fault. but wouldn't good customer service have been to send me an automated message around my billing time to maybe remind me that may be an issue? no, but they can't do that, they need the money. they can keep that one-and-only-late payment, because i just paid the balance and i'm never using amex again and i will certainly steer anyone i know away from using it.

[Srinivas Annadi]

Linda, same experience happened to me. Amex has raised my interest rate, infact I wasn't even a late payment for single month. When I called in, representative tells me the same old story that there was company wide change and nothing we can do about it. Fortunately, I was in a position to pay off the balances, so did immediately and stopped using Amex card.

Amex not only lost a good customer like me, indirectly Costco also lost me, because Costco only accepts Amex cards. Sorry Costco... I will shoot an email to Costco about this too...

Tit for tat is to pay off and don't use that card at all.

[Linda]

Amazing isn't it! They are completely unwilling to cut a customer any slack. They jack up interest rates, cut limits and charge fees. Ater being an excellent customer since 1997, I had financial difficulties in 2008 and advised them I would be paying 2 payments late. Their response...a 26.99% interest rate for 1 year, plus late payment penalties. NO NEGOTIATIONS!!! I tried to follow the Suzie Orman method of keep calling until someone will talk to you. Well they put notes in my file and refused to transfer me and/or talk to me. In April my one year is up, but today I got a letter that they are raising the rate to 27.99% across the board. I called again and was told they would try and reduce the rate for me, but since my statement had already gone out they wouldn't be able to tell me anything until next month. The woman said that this was all they could do. Where is Congress and why are they taking so long to stop this nonsense?

[Jason Allen]

they are like almost three months late on paying their own affiliates!?... you gotta be kidding me... this makes me so angry. you are right arizona bill. the government should take back the tarp money and then fine them. come on now!!!!

[arizona Bill]

I think we should reduce their credit line and add a 10% daily late fee.