The concept of credit card rewards programs is one that is near and dear to my heart, but this sounds too good to be true; $300 cash just to agree to close my account? Tell me more!!!

New York based American Express announced this week that it will  pay certain cardholders $300 each (actually, in the form of an American Express Gift Card) to close accounts so the lender can reduce the risk of defaults as the recession deepens. The company did not specify how many people have received the offer to date, or the specific qualifications that the targeted consumer’s were required to meet,  but they have indicated that it has been extended to a relatively limited number of cardholders thus far. But with an estimated 44.2 million American Express cards in use in the United States, that is still potentially a significant chunk of change.

But who are these lucky few? We’re pretty convinced they are those customers that nobody wants…  they either are making no money off them, or suspect they will be defaulting in the not-so-distant-future.  According to the company’s website, cardholders who got the offer to “simplify” their finances must pay off their entire credit card balance by April 30 in order to be eligible.  Enrollment in the program cancels the customer’s account and may additionally lead to forfeiture of accumulated reward points or rebates.

According to a February 24 Bloomberg News article:

“What AmEx is trying to do is move to the front of the line in terms of getting paid back” by customers who owe debts to multiple lenders, said Michael Taiano, an analyst at Sandler O’Neill & Partners. “They clearly grew loans faster than their competitors in the years leading up to this financial crisis.”

Chief Executive Kenneth Chenault is shedding customers as rivals reduce credit lines, raise interest rates and cut back on mail solicitations to brace for future losses. The industry’s defaults are set to break records and may reach 11% by year-end.

American Express has been struggling along with others in the financial sector, reporting last week that January credit card delinquencies rose more than expected. Fourth-quarter profits have fallen 72 per cent to $238 million US, and the company said in October that it will cut 7,000 jobs in a bid slash costs by $1.8 billion in 2009.

With unemployment in the U.S. at it’s highest level since 1992,  some of the 7.6% of people that are out of work may find this offer appealing. If you are one of those many challenged individuals, we’d love to hear your take on this offer.

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