American Express is hiking credit card rates for 1 million members

American Express is increasing annual rates on more than one million credit cards, according to a report form Bloomberg’s Elizabeth Dexheimer.

The company has sent letters to affected clients, saying they pay less than cardholders with similar credit reports at other companies, Bloomberg reports.

The cardholders will now pay at least 12.99% in annual rates, a 2.5% increase on average.

An American Express spokesperson told Bloomberg the changes will affect “new purchases and balance transfers, and they’re no higher than consumers would get today if they apply for a comparable AmEx card.” They will also affect some existing co-branded credit cards.

Recent news out of American Express has Wall Street nervous about the company, and the stock has plunged nearly 13% year-to-date.

Last Thursday, AmEx lost an antitrust lawsuit over whether it could stop merchants from asking customers to use other credit cards.

Earlier in February, American Express announced the end of its co-branding agreement with Costco, saying it was “unable to reach terms that would have made economic sense for our Company and shareholders.” It had also lost a similar agreement with Costco in Canada.

And along with its fourth quarter earnings results which showed revenues were dented by the strong dollar, it announced that it was laying off 4,000 people as part of a restructuring process that will cost $US313 million.

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