American Express is changing its ad campaign. The new catchphrase: "Are you a cardmember?" American Express will be spending four to five hundred million dollars on the campaign, which gives you some idea of how much money these guys are making. My favorite quote from the New York Times article about the change: Mr. Hayes said that the "My life" campaign "has done a great job redefining the notion of membership" as well as reminding consumers that "American Express is a company, not just about transactions, but about relationships."
Ohh ... So credit card companies are about relationships! Well, according to Indianapolis Mental Health counselor Dawn Kozarian, financial problems cause more divorces than adultery. And in his book Maxed Out, James Scurlock tells the story of a young man who killed his entire family as a result of stress over credit card problems. So I guess that credit cards really might involve relationships in that sense. But I somehow doubt that's what Mr. Hayes was talking about. Perhaps he was referring to the relationship between the credit card company (and its bill collectors) and the consumer, in which case Scurlock could also tell you a story about a young lady who committed suicide after receiving months of harassing and threatening phone calls from a collection agency. But I don't think that's what Mr. Hayes means either.
Frankly, I can't even imagine what he was talking about. As we're learning from watching the collapse of the subprime lending industry, the consumer credit industry is predatory. Sure, the credit card companies will tell you that they advocate responsible, intelligent use of their cards. But as most personal finance experts will tell you, pretty much the only intelligent, responsible way to use a credit card is to pay off the balance every month, and If you do that, the credit card executives will call you a "deadbeat" behind your back. They don't make any money if you don't pay them any interest. Many credit card users get themselves deep into debt, and that's bad for them and it's bad for America, but the credit card companies love it.
As I watch credit card commercials, I wonder, "How can Uncle Sam allow this company to advertise on television something that destroys so many lives? Cigarette companies can't advertise on TV (they made that rule themselves to avoid government regulation), so why credit cards?"
And, like cigarettes, I believe that credit cards should carry a little "SUZE ORMAN'S WARNING" or an "M.C. HAMMER WARNING" in the upper left-hand corner of the card:
- WARNING! IF YOU DON'T PAY OFF YOUR BALANCE EVERY MONTH, YOU MAY SPEND YOUR GOLDEN YEARS EATING IAMS DOG FOOD THAT'S 25% OFF BECAUSE OF SOME MANUFACTURING IRREGULARITIES.
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Reader Comments (Page 1 of 1)
4-07-2007 @ 2:06PM
laur said...
They SHOULD post WARNINGS on CC'S! They ARE dangerous! My Ex & I had harASSing calls at all hours(even past Bs. Hrs.)2 summons on a Sunday...well, we had to file for Bankruptcy. Due to my Lupus I still have bill$ but we're trying to lower that !@#$ interest. We're on that stop sending junk list for 5 yrs. but somehow Chase & AmEx sneaks those fake cards in mail. ENOUGH!
4-07-2007 @ 2:06PM
Ron Woody said...
CRedit card co's break fed consumer laws all the time and the courts give them what they want esp so with Capitolll one who is not alowed to sue beore resolving a dispute
4-07-2007 @ 5:03PM
Tom said...
I'm 19 years old, with that in mind CC's need a warning label. They "will" send credit cards to people my age and many of them are like "oh cool" than they overspend(they might not even be employed) and that is bad. between having student loans, school, and part time jobs. Why would we honestly want to "add" more debt?
4-09-2007 @ 9:02AM
Matt Rogers said...
Here is a thought, pay off the balance each month or do not max the card out. You people need to be protected from yourself.
Get the part time job, live below your means, don't rush out and purchse new clothes, big screen tv's or video games. Oh wait, it is your right to do that even though you can not afford it but that is ok. The hard working people of the country that do live below their means and work hard to pay off debt will gladly bail you out yet again.
4-13-2007 @ 1:12PM
Bonnie said...
The government loves those who use credit cards. They don't give a rats ass if you max it out and get in trouble.
Spend! Spend! Spend! What did Bush say after 911?
With a straight face he said :
TAKE YOUR FAMILY TO DISNEYLAND IN FLORIDA!!!
Keep the ecomony growing!
The false economy that is! It's all gonna come crashing down!
The terrorist overseas are no doubt a threat to this country, but the biggest threat is the banking industry and the legislators who are in the pockets of these greedy monsters!
4-17-2007 @ 3:07AM
cardoner said...
OK, credit companies are evil! I don't think that that guys from Amex are so bad. Much more problems have cause of people's financial illiteracy. Eventually banks get great profit because of it! Yesterday I read an articlehttp://www.requestcredit.com/Is-Credit-Treacherous-1545368-page_31.php , they said "We will talk about suicide as the worst and the most terrifying outcome of improper or inefficient credit card management. The most absurd thing about the increase of suicide cases is that it’s been caused by the mere credit illiteracy and lack of fundamental knowledge. And the most deplorable thing about it is that it’s primarily young people, who have just started their credit history, who undertake such a desperate and fateful step". I don't think credit company responsible for people's debt as McDonalds doesn't responsible for people's fatness and Absolut doesn't responsible for alcogolism. You have a choice:to use or no to use cards. But if you can't use it carefully, if you regularly overdraft don't use at all!