With fewer rappers buying out the bar with their black cards and even us everyday Americans cutting debt spending for several months straight, American Express just can’t make money like the good old days.

Profits at the credit card issuer are down over 21% from last year. The main culprit was the surge in late payments and defaults due to the overall hard times faced by most credit consumers. Their card defaults are up significantly. Amex wrote off 8.9% of its U.S. credit card balances in the third quarter of this year, up from 5.9% in 2008.

Although net income fell, it was higher than predicted by the company. As a result, share prices for American Express actually rose after the earnings were released.

Some analysts (i.e. those who didn’t get enough coffee that morning) thought that wealthy consumers would pull Amex towards higher year-over-year profits. They clearly failed to recognize just how deep this recession has become and how the habits of even the most affluent members of society have changed. Conspicuous consumption, personified by the swiping of a platinum American Express card, is a thing of the past.

Part of the pain that Amex is feeling may be of their own doing. While the company has historically enjoyed very high customer satisfaction rates, lately they have not been pleasing their historically demanding clientèle. Check out some of the comments made by American Express cardholders (and former cardholders) on Consumer Affairs and the Complaints Board. Much of the dissatisfaction comes from Amex dramatically lowering credit limits and raising rates, even for customers who had been paying on time.  The company is not alone in that regard, but Amex customers pay more in annual fees the the privilege of their plastic and don’t expect to be treated like common ruffians.

It will be interesting to see how many people look to downgrade their Amex cards to lesser levels moving forward, or ditch Amex altogether for more reasonably-priced credit.  Now that the gleam has worn off of the Centurion’s armor it may be the end of this empire.