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American Express told customers this month that
their annual rates will rise an average of 2.5 percentage points
to at least 12.99 percent following a review last year,
Bloomberg reported, citing people briefed on the move.
The company sent letters to its cardholders saying it is making
adjustments after finding its rates were below those of rival
cards held by borrowers "with similar credit profiles,"
Bloomberg reported, citing a copy of the letter.
The planned increases will affect a variety of variable-rate
products, including some of its proprietary and co-brand credit
cards, Bloomberg quoted an American Express spokeswoman as
saying.
American Express could not be reached for a comment outside
regular business hours.
Earlier this month, American Express said its earnings would
suffer for two years after failing to renew deal with Costco
Wholesale Corp.
(Reporting by Ismail Shakil in Bengaluru; Editing by Maju
Samuel)
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