Dave Ramsey Slams Amex, Citibank Over $45K Widow Debt

On a recent episode of The Ramsey Show, a caller named Michelle from New York described how her 85-year-old widowed mother accumulated $45,000 in credit card debt across 5 cards, including American Express and two Citibank cards. The mother lives solely on Social Security and has no assets.

Details

Michelle discovered the debt after her father passed away in July. She explained that her mother used the cards to cover basic living expenses after her savings ran low. She noted that the banks approved high credit limits despite her mother's low income.

Context

Dave Ramsey, personal finance expert, said, "Citibank and Amex have screwed an 85-year-old widow." He argued that banks are responsible for approving cards to people who cannot repay. This story comes amid growing criticism of credit card companies' lending practices to seniors.

What It Means for Investors

The story highlights reputational risks for American Express (AXP) and Citigroup (C) if such practices persist. However, these remain isolated incidents and do not necessarily reflect the companies' financial performance.