# Woman charges $951K on Amex card, sues Amex for letting her charge it **URL:** \ **Category:** The BBQ Pit\ **Created:** [November 27, 2004, 3:44am UTC](https://boards.straightdope.com/t/woman-charges-951k-on-amex-card-sues-amex-for-letting-her-charge-it/276831 "2004-11-27T03:44:26Z")\ **Posts on this page:** 11\ **Page:** 4
**Author:** ![Steve\_MB](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/steve_mb/32/5339_2.png) [@Steve\_MB](https://boards.straightdope.com/u/Steve_MB)\ **Post date:** [November 29, 2004, 4:39pm UTC](https://boards.straightdope.com/t/woman-charges-951k-on-amex-card-sues-amex-for-letting-her-charge-it/276831/61 "2004-11-29T16:39:10Z")
> [@Khadaji](#): > > Needless to say, I hope she loses. This is one of those cases where I wish for some way for both sides to lose. It seems clear to me that this woman is a scam artist, and that AmEx distributes credit cards to the four winds in the expectation of extracting late fees and interest from the unwary. ---
**Author:** ![Steve\_MB](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/steve_mb/32/5339_2.png) [@Steve\_MB](https://boards.straightdope.com/u/Steve_MB)\ **Post date:** [November 29, 2004, 4:47pm UTC](https://boards.straightdope.com/t/woman-charges-951k-on-amex-card-sues-amex-for-letting-her-charge-it/276831/62 "2004-11-29T16:47:55Z")
> [@Fear Itself](#): > > I would prefer more regulations and a lower interest rate, please. One example of snaky credit-card company practice that cannot be avoided exercise of personal responsibility are those “call this number and read this invitation code” credit card offers. They create a serious security risk to the (intended) recipient, and ought to be illegal on that basis. ---
**Author:** ![Steve\_MB](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/steve_mb/32/5339_2.png) [@Steve\_MB](https://boards.straightdope.com/u/Steve_MB)\ **Post date:** [November 29, 2004, 4:49pm UTC](https://boards.straightdope.com/t/woman-charges-951k-on-amex-card-sues-amex-for-letting-her-charge-it/276831/63 "2004-11-29T16:49:45Z")
> [@Grace](#): > > American Express has charge cards and credit cards. The traditional card (the green one with the old “Don’t leave home without it!” commercials) is the charge card. It doesn’t have an officcial credit limit, but don’t let that fool you. Amex does monitor and regulate the amount a person spends each month. For example, the cardmember usually spends $900 each month. That becomes part of the recorded history and if they notice that one month it jumps to $5000, they’ll stop charges on the account until they verify that the card wasn’t lost or stolen. Once you verify that you’re the one using the card (in my case it was letting them know I was on my honeymoon in Cancun), they release the hold and you’re off and running again. My credit card company did the same thing (when I bought a computer for about $1800 after a long history of never charging more than about $600/month). It’s a prudent precaution. ---
**Author:** ![Maeglin](https://avatars.discourse-cdn.com/v4/letter/m/8baadc/32.png) [@Maeglin](https://boards.straightdope.com/u/Maeglin)\ **Post date:** [November 29, 2004, 7:02pm UTC](https://boards.straightdope.com/t/woman-charges-951k-on-amex-card-sues-amex-for-letting-her-charge-it/276831/64 "2004-11-29T19:02:18Z")
Wow, a lot of you seem to know privileged information about credit card business models. Care to elaborate how you came by such juicy info? ---
**Author:** ![Maeglin](https://avatars.discourse-cdn.com/v4/letter/m/8baadc/32.png) [@Maeglin](https://boards.straightdope.com/u/Maeglin)\ **Post date:** [November 29, 2004, 7:07pm UTC](https://boards.straightdope.com/t/woman-charges-951k-on-amex-card-sues-amex-for-letting-her-charge-it/276831/65 "2004-11-29T19:07:23Z")
Wow, a lot of you seem to know privileged information about credit card business models. Care to elaborate how you came by such juicy info? ---
**Author:** ![Moirai](https://avatars.discourse-cdn.com/v4/letter/m/96bed5/32.png) [@Moirai](https://boards.straightdope.com/u/Moirai)\ **Post date:** [November 29, 2004, 7:15pm UTC](https://boards.straightdope.com/t/woman-charges-951k-on-amex-card-sues-amex-for-letting-her-charge-it/276831/66 "2004-11-29T19:15:23Z")
Um, we’ve read the fine print? Seriously, none of this is any big secret, so the fact that people are surprised by it is a little scary. Or have I been whooshed? ---
**Author:** ![Maeglin](https://avatars.discourse-cdn.com/v4/letter/m/8baadc/32.png) [@Maeglin](https://boards.straightdope.com/u/Maeglin)\ **Post date:** [November 29, 2004, 7:34pm UTC](https://boards.straightdope.com/t/woman-charges-951k-on-amex-card-sues-amex-for-letting-her-charge-it/276831/67 "2004-11-29T19:34:15Z")
> [@EJsGirl](#): > > Um, we’ve read the fine print? Seriously, none of this is any big secret, so the fact that people are surprised by it is a little scary. > > Or have I been whooshed? Oh? Things like this are in the fine print on your credit card statements? > [@](#): > > AmEx distributes credit cards to the four winds in the expectation of extracting late fees and interest from the unwary. > [@](#): > > the company cares when a customer defaults? Hell no. They’re going to get their money anyway, which is why they will give a card to pretty much anyone. > [@](#): > > You realize that by endorsing a hands-off policy towards credit companies, you are raising the price of credit for everyone else who must shoulder the debts of the ones who cannot control themselves? I would prefer more regulations and a lower interest rate, please. Since all of the above statements are incontrovertibly wrong, I was wondering how various dopers had gotten their hands on this information. ---
**Author:** ![Fear\_Itself](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fear_itself/32/19637_2.png) [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)\ **Post date:** [November 29, 2004, 8:54pm UTC](https://boards.straightdope.com/t/woman-charges-951k-on-amex-card-sues-amex-for-letting-her-charge-it/276831/68 "2004-11-29T20:54:43Z")
> [@Maeglin](#): > > Since all of the above statements are incontrovertibly wrong, I was wondering how various dopers had gotten their hands on this information. My statement is not wrong, controvertible or not. ---
**Author:** ![Maeglin](https://avatars.discourse-cdn.com/v4/letter/m/8baadc/32.png) [@Maeglin](https://boards.straightdope.com/u/Maeglin)\ **Post date:** [November 29, 2004, 9:20pm UTC](https://boards.straightdope.com/t/woman-charges-951k-on-amex-card-sues-amex-for-letting-her-charge-it/276831/69 "2004-11-29T21:20:38Z")
> [@Fear Itself](#): > > My statement is not wrong, controvertible or not. Of course it is. The relationship between regulation and the interest rate you pay is by no means as simple and direct as you suspect. Who do you think would pay for the high costs of compliance and the higher capital and reserve requirements that more regulation always entails? Let me give you a hint. The FFIEC enacted much stricter regulatory guidelines in 2000 and again in mid-2002. This has caused major credit card companies to alter considerably the composition of their cardholder balances. Now you tell me, **Fear Itself** , have your interest rates gone down? Can you actually explain to us just what the relationship is between revenue from interest on revolving credit card agreements and cardholder risk is? ---
**Author:** ![BytopianDream](https://avatars.discourse-cdn.com/v4/letter/b/9de0a6/32.png) [@BytopianDream](https://boards.straightdope.com/u/BytopianDream)\ **Post date:** [November 30, 2004, 2:31am UTC](https://boards.straightdope.com/t/woman-charges-951k-on-amex-card-sues-amex-for-letting-her-charge-it/276831/70 "2004-11-30T02:31:28Z")
> [@Aldebaran](#): > > Oh God… My aunt escaped again and uses her fake US passports… > She sued the Credit Card Company ? Oh God, oh God… She doesn’t remember she owns it. This is Trouble. > > Won’t anybody think of the children? Bravo! I laughed, I cried, I bought the movie on my Credit Card! ---
**Author:** ![mrklutz](https://avatars.discourse-cdn.com/v4/letter/m/ebca7d/32.png) [@mrklutz](https://boards.straightdope.com/u/mrklutz)\ **Post date:** [November 30, 2004, 5:03pm UTC](https://boards.straightdope.com/t/woman-charges-951k-on-amex-card-sues-amex-for-letting-her-charge-it/276831/71 "2004-11-30T17:03:39Z")
> [@Steve MB](#): > > AmEx distributes credit cards to the four winds in the expectation of extracting late fees and interest from the unwary. Actually, AmEx markets charge cards heavily to college students because they have (for many decades) been a good bet to become very solid customers when they graduate. It’s the same reason Apple gives student discounts. Late fees and interest? Well, the charge cards don’t let you carry a balance, so interest isn’t a factor. Late fees are not where AmEx makes their money. They want customers like **PunditLisa** who make lots of charges and pay them off every month, so they can get money from the merchants by charging them a percentage of every transaction. Am I a big fan of AmEx cards? Nope. Don’t have one myself. But I do know their business doesn’t revolve around getting people to carry debt. [Previous page](https://boards.straightdope.com/t/woman-charges-951k-on-amex-card-sues-amex-for-letting-her-charge-it/276831.md?page=3)