I have always liked credit cards since I was a 18 years old. I have never really abused them and have never been a big user of them. However, I have always liked having the convenience it provides and having them in case of emergencies.
My credit history is perfect, goes back over 20 years, and I have an above average FICO score. Recently, for no reason I am aware of, a few of my credit cards reduced my credit lines down to the balance I owe on them. I actually used these credit cards for my business that I run. I have plenty of credit but I don’t like how they possibly could affect my future credit profile.
Literally one day, I had a $30,000 credit line card with a $10,000 balance. This is about 33% of the credit limit used. They reduced my limit to the $10,000 mark. I haven’t made any late payments on this card nor any other cards that I carry. The interest rate on this card is 3.99% fixed for the life of the balance. As long as I don’t miss a payment it will stay that rate. So now on my credit profile, it will look like I maxed out that card since I am at 100% of the credit limit. I have heard of card companies raising interest rates on a card if you are late on other cards, but all my cards are paid early. I do online banking and have them paid usually the day after I get my statement. I also have automatic payments set up to pay the minimum in case I overlook a payment. That is my failsafe backup plan in case my memory betrays me.
My guess is that the housing bust has hurt the banks and they are looking to reduce any further losses in their credit card portfolios. My feeling is they did this across the board with people who carry a big balance. At first it really irritated me, but I realize this is just fall out from the recession we are experiencing. That is one heck of a way to tighten up credit.
This literally happened yesterday and I haven’t had a chance to call the credit card company American Express to find out why they did this. I don’t expect to get a satisfactory answer since the account representatives are not the credit managers who make policy. The credit card company is free to do whatever they want as far as credit lines and rates, as I am free to cancel them and use other credit card services. In the future, when I have them paid off I will no longer use their services for my business.
I have a FICO score over 700, but because of this recent change I am guessing it will lower my score. I get free FICO scores through one of my other credit cards, so when they update next month I will see if this has had an adverse effect.
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We’re at the mercy of credit card companies, because they’re the ones holding the money. But like you said, just move on to one which would provide better policies.
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The thing is, we are at credit card companies’ mercy. But you are doing the right thing, just move to the next available service that provides better policies.
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The exact situation you described has happened to me twice recently. Late last year, they reduced the spending limit on my Starwood rewards card with no provocation and then cut off the “Flex Spending” option on my Platinum. I’ve never been late once on any account, well over 700 credit score, etc.
I was also upset that at around the same time they had denied a charge on one of my charge cards that supposedly has no spending limit and they said it was because of the balances on my other accounts. When I then told a customer service rep that I simply took out another AMEX charge card and it went through fine, she was unable to address why one card would work and another did not.
I then spoke with an AMEX customer service manager about this situation and after a very long (1 hour) debate on how reducing credit actually penalizes customers even more for the same issues that they claim to be doing this for, she didn’t have a logical response. After pressuring her, She also confirmed that AMEX is getting away from issuing credit (they took away my flex spend rights on my platinum card) and regretted launching the “Flex Option”. She then had the nerve to actually say that I should pay down my balance on my Blue card. I laughed at her suggestion, stating that at 3.99% it makes no sense for me to do that especially when ING, Etrade etc are offering ~5% interest in a savings account.
I was pretty much insulted at this point as I have had a number of cards with AMEX over the years for personal and business reasons and paid of the charge cards and closed the accounts.
I kept my Blue card and one charge card open, and well of course over a few payments with no spending activity, they saw an opportunity to take away more credit. This month, they made the biggest cut by reducing down my Credit Line on my Blue Card, which they previously had not done. I don’t’ use the Blue Card much and simply transferred some balances to the card to take advantage of the low 3.99% APR. They pre-approved me for the line and encouraged me to take advantage of the balance transfers. If I had known they’d take that away, I’d have not done it. I have had a balance of $13,000 with $20,000 credit line and they recently reduced it down to $13,200 for “a recent review of your credit history.” Now it looks like I’m maxing it out.
The thing that makes me most upset is that my balances with all of my credit lines (non-AMEX) are LOWER than when I got the card and I even paid off a $30,000 loan on a vehicle in cash, and I even had a higher % of available credit than in the past.
Bottom Line: AMEX is doing something to reduce their risk in credit they’ve issued. But whatever system they are using, it is flawed as it seems to penalize the best, most loyal customers, as well as those who may be abusing their credit.
I smell a class action lawsuit coming, so justice may be served after all. At the very least, your blog is a good starting point.
Having just read a fantastic article about “Consumer Vigilantes” in Business Week (March 3rd edition) and finding out that there is someone else out there in the same situation as me, leads me to believe that something should be done about AMEX’s practices.
I think that it is completely wrong for a credit card company to reduce your available credit if you’ve been a loyal customer and have paid your bills on time and your credit history has not changed. Because by doing so those companies have the power to hurt your credit score when you’ve done nothing but honor your agreement to pay and spend within the guidelines that they set.
Hi Jimmy H,
I was hoping I wasn’t alone in this situation. I wrote about it just to air out my frustration by their surprise move. I did call them and they basically told me the same thing. I get a feeling they are getting many calls like this because the first customer service representative turned the call over to a supervisor immediately before trying to address my concerns. I was polite and nice through the whole conversation and of course didn’t get a real answer for the change in my credit line. The supervisor said something must have changed in my FICO score and that they regularly monitor for changes on credit reports. She mentioned they use Transunion. I just happened to subscribe to that service and get my credit score update every month and told her this. I advised her my score actually has gone up from the previous month by 3 points. She was stumped, and just said there was nothing she could do and apologized profusely.
Based on the way the call was handled, I can tell they expected these type of calls. This seems to be a policy they ran through their entire database of customers in our same situation.
I remember a few years back I had an FCNB MC branded credit card which was the Speigel and Eddie Bauer visa and mastercards. They had cut my credit limit in half for no reason. Then the following month they cancelled their credit card agreement with Visa and MC and closed out my card. When I called them they said they were just shutting that part of their business down. It made sense after it all happened.
Here is a link of that incident:
http://www.complaints.com/march2003/complaintoftheday.march4.3.htm
I tried doing a search to see if there was something similar happening here, but I couldn’t find anything. The main news that I think may have affected customers in our situation has to be there last earnings statements:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aVaUKS9bOLVg&refer=home
Wow… yeah amazing how many people are in the same situation with AMEX. Thanks for the links. It would not suprise me in the least. AMEX has always been big on customer service, but that only goes so far if their practices don’t match.
I’m all for responsible borrowing and spending but to reduce someone’s credit when their score is impacted by it is not right if they have met all the obligations of their accounts.
Some may disagree but some lawmakers do not. Help is possibly on the way… the industry term for this practice is called UNIVERSAL DEFAULT and Citibank actually abandoned the practice in 2007 and Chase is soon to follow. (I have big credit lines with both those companies, so guess who is going to get my business now?)
Good article: http://www.time.com/time/magazine/article/0,9171,1715293,00.html
You can file a complaint about your credit card company with the Office of the Comptroller of the Currency, Customer Assistance Group, 1301 McKinney Street, Suite 3450, Houston, TX 77010-9050. They have been bombarded with complaints about credit card companies.
Same crap here! American Express doesn’t give a damn about its loyal American customers who have kept them in business, maintained good credit and pays early. DON’T USE AMERICAN EXPRESS. None of my other cards have done this. Don’t reward them for sticking it to us.
Hi JIMMY…
OMG…I have been online today trying to figure out if I should close my AMEX Gold Rewards Charge card…and came across your blog. I am SO relieved I’m not the only one going through this with AMEX!!!
I have been a loyal customer of AMEX since 1995 and because of them offering me so many promotions in the past — and increasing my credit lines (without asking), I have accrued five AMEX cards…all for different “perks.” A few months back I went online to pay my bill and thought someone had stolen my credit cards. They had reduced my credit limit on two of my cards…just like that! I have paid every single one of my cards on time…every month for the past thirteen years. I have spoken to CS endless times and have gotten nowhere. To make matters worse, last month when I tried to use my Gold rewards card (which I hadn’t used in a few months prior), they put a hold on all five of my AMEX cards…I still don’t understand, but the jist of it was that I had started using my Gold card again over the last two months, but BEFORE that I hadn’t used it in about six…and even though the balance was ALWAYS paid in full every month, they saw the spending as a risk (condensed explanation).
Anyhow, I could go on…so many issues with them now…and they declined my ONE charge this month AGAIN (bill was just paid in full last week) until the bill is paid on its due date in three weeks. I still want to know if CLOSING my Rewards Gold card (that charges $150.00/yr) will damage my credit. I know closing CC accounts literally damages your credit rating. Again, this is a no-limit charge card.
Amex just did the same to us. We have never had a late payment, had a twenty point increase in credit rating over the last months and have been agressively paying down our balance–which will stop as of today. I’ll make minimum payments and turn my dollars to other cards–after I write my congressman and discuss their behavior with our corporate attorney.
I recently started a small business with my wife and we decided to use Amex as our card of choice for the startup costs which we projected to be about $12,000 over a period of about 4 to 6 months. We have a green Amex, A Blue Amex and a Corporate Amex (for the record). I tried to purchase a refurbed mac computer online for $1700 and the charge was denied. I called the computer company to tell them to re run the charge. Denied. I called them again and they said I needed to call Amex. Called Amex and they said, Oh we’re sorry, we just wanted to make sure it was you making the charge. Yes, it’s me. Ok then, we will authorize the purchase. Tried the charge again (this has taken two days now). Denied. Called Amex and was told by service rep this time that he was not authorized to allow the charge. Asked for a manager. Manager was rude (Mr. Christmas, ha!) and basically told me that we never had a balance of over $800 for the 8 years we have had the card (and I made sure he saw that we paid it off EVERY MONTH!) and that he would “over ride” the charge for this one time. And that the charge was approved the previous day but that I charged lunch ($6.43) after they authorized the $1700 purchase so it cancelled the over ride the previous day (which NO ONE EVER TOLD ME). Then he made up some other stuff which was not true and I got angry with him and told him that his staff lied to me and that my $$ was in my checking account as we spoke and I would never charge anything that I could not pay. He said I would need to 1.) pay off the outstanding balance after the computer charge went through befoere they would let me charge anything again, 2.) call ahead for pre-approval on every purchase, 3.) that I had to get a new Corporate Amex for company purchases in that company’s name, and 4.) that I had too many inquiries on our credit file (which was a lie because we had just refinanced our 30 year 6.875% fixed mortgage to a 15 year 4.5% fixed because we had NO inquiries on our credit and awesome credit payment history.
After all of that, Amex reduced the limit on ALL THREE OF OUR ACCOUNTS and TWO OTHER CORPORATE ACCOUNTS THAT MY WIFE WAS ON to $100 over the balance and basically froze the accounts by requiring pre-authorization for any charge.
Amex is going bust because I am telling everyone I know about this (and they all say they have had similar experiences by the way). I’m keeping all the cards open and paying them down to $0.01 so that they have to keep me on the books and send me account statements every month and I will send inquiries to them every month until they choke. I may even open up more Amex accounts just to keep doing it. I am writing my congressmen, sending a letter to every board member and officer in their company as well.
And we do not plan to offer Amex as an acceptable form of payment on any of our websites or in any of our stores, or for retail or wholesale purchases.
Membership has its privileges…phooey!
TJ i like your plan about paying it down to .01 Can you please explain it more. I had a similar incident with AMEX…my FICO score was shot because they lowered my credit limit from $6000 to $3500. My balance was $3200. This is after I made a big payment and I’ve never missed or made a late payment b4. I called AMEX and the rep told me they will lower my credit limit to a comfortable level for them. I was infuriated and asked “gee why didnt you lower it to $0 while you were at it”. Well he basically insinuated they would’ve except “we can’t lower the credit limit below your balance” !@#$% Friggin A! I think we should all team up against AMEX’s cruel treatment against customers!
I’m trying to make a balance transfer to Amex because they offered me 3.99% interest until I paid off the total of the loan. After I read all these complaints I don’t known if this acction is going to be a some kind of dangerous movement for me with Amex. I need advice in this matter please.
Hi Jose,
It really depends on your situation. 3.99% is a good rate especially if you apply it to a bigger balance with a higher rate. Chances are within 6 months they may lower your credit limit to the balance you owe but you will still have the low rate, provided you don’t make a late payment.
I still have a balance I am paying off at the 3.99% with Amex. After they lowered my credit limit, my FICO score went down 25 points after 2 months. If you are thinking of getting a mortgage this will affect you adversely.
If you are not getting a new loan within the next year, then I would transfer the balance. A better option would just be to pay off the balance if you have the available funds to do it with.
Good luck with your decision.
Cheers!
WOW! THERE IS A BIT OF COMFORT IN KNOWING I AM NOT THE ONLY ONE. TODAY, AMERICAN EXPRESS DID THE SAME TO MY COMPANY CARDS AND EVEN PUT A LIMIT ON MY PLATINUM AMEX. I ASKED THEM TO RETURN THE FEE I PAID “FOR THE PRIVILEDGE” OF HAVING THE PLATINUM CARD (WITH NO LIMIT). THEY REFUSED.
I HAVE EXCELLENT CREDIT, NO LATE PAYMENTS EVER AND A HIGH INCOME. I KNOW THIS WILL EFFECT MY CREDIT SCORE UNTIL THE BALANCE IS PAID OFF.
I WILL BE CONTACTING MY ATTORNEY!
Bank of America has also started the same stuff. I have 750 plus score and owed 600.00 on card that has a limit 38000.00 they called and said that my new limit is 2000.00 I cancelled the card and will no longer use this bank.
I am closing my account on Monday. They reduced my credit line for the second time. Credit scores are 718, 736 and 764. Never been late. I just opened a new Citi card with a 9K limit. Guess that caused it. They will no longer insult my integrity.
This happened to me last week have 6 cards with Amex (Business and Personal) over $35,000 in credit as well as some cards with no ceiling. Never paid late, no balance ever, have been a customer for over 7 years with a 740 fico. Out of the blue they call me and wipe out all the credit on Amex. Although I don’t really need the credit from them (still just the point of this) wish they would really get in trouble for doing this, especially to customers that pay their bills, have an excellent track record and credit history. This feels awful.
American Express did the same thing to us. We are never late and got our limit reduced $10,000. I do have a balance with them, but because they did this it makes it look like we are at our limit. I did not know this was legal. However, My goal is to pay them off and never use them again. I also have a business and I am going to stop taking their cards. I hope one day this comes back to bite them in the ass. There is no excuse for what they did.
Amex just suspended my account. It is in good standing, current, with no late payments. Reason: they want to review my finances. They asked me to send either recent checkstubs, bank statements or tax returns for past 2 years…..can you believe this! Never in my life have I had to do this for a credit card, and I have a strong credit score! I have had recent (last 2 months)large purchases on an associate card, but had just mailed in a $5000.00 payment on a $14,000 balance. (minimum payment required was only $1200. I said I did not feel i had to submit my personal documents, as my account was current, I just mailed in a large payment, and there was no indication my account was a high risk account. (member since 2000, never any issues). They refused to remove the suspension and said they would not do so unless i sent in the documents. If they do not receive them within 15 days they will cancel my account. This is the most ridiculous thing I have ever heard. I am not applying for new cards or even asking for a higher credit limit. I feel there is no valid reason they have to ask me for this information as I have obliged by all their terms and conditions. I am so frustrated and insulted by the way they are treating me, that I will never use their services again.!!
OMG! I can’t believe this! I thought that I was the only one this has happened to. So today, I received two letters from AX indicating that my credit limit has been reduced on both of my cards, Jetblue AX limit $8k (balance $0) and Delta AX limit $15k (balance 10k). Informing me that Jetblue has been reduced to $500 and Delta to $10k. These people are F8^&% crazy! I have never never never never been late and always paid more than minimum! I called AX and they tell me that negative info has been reported on my credit report (which is BS)! I told them that i have a current credit report from Experian dated August 8th and there is NO negative information and they know it! Something is seriously dishonest about AX and now it appears that I am maxed out of credit with these a-holes! I am contacting an attorney this week!
Same here.
Seems there is a trend and I can only imagine how many people this is affecting.
Here’s my facts.
Customer since 2000.
Platinum Card with regular monthly spending in excess of over 30K and no current balance had a limit of $1,100.00 placed on it.
My Green Card with a balance of 11K had a limit of 10K placed on it, so I am OVER the limit now.
Unreal huh! And, kinda scary what this must mean if a credit card company needs to stop extending CREDIT. Afterall, isn’t that what they are in business for?
Same here bro…i think they are red lining those that have mortgage in high risk area. Customer since 1999. Blue - 20k to 500 (no balance) - CLear - 25k to 4900 (4800 balance) and i know my clear will go down because everytime i pay down they cut the limit (chasing balance). I called they ask me to call Experian. I told them i have it infront of me and we can do a 3 way call…phone got disconnected. i call again, they said call at again in 6 months…f man…my score just drop 40 points from 700 to 660 because amex with balance from 25% to 99%. I want to see class action lawsuit. i know the money is not my, but the credit score system has a big flaw as well…WHY WE LET CREDIT SYSTEM CONTROLLING US!!!
Wow. There are some great posts and stories on this site. I’m truly amazed by the magnitude of the credit line reductions. I’m reading Amex is in trouble. They are having difficulties rolling over debt as are most of the banks.
If you have a FICO score below 780, you are seen as a higher risk and credit lines will be adjusted.
My best advice is to not carry balances on any credit cards, and make your payments in full to zero out the balance BEFORE your statement closes. The credit bureaus will lower your score when your CC balances go over 10% of your available credit. For example, never spend more than $2000 with a $20k credit line.
The trendlines indicate banks are going to take enormous losses on unsecured credit card debt in the next 24 months, so it’s understandable they don’t want to lend. But, like a previous poster said, a lending business that doesn’t lend, is out of business!
And I thought I was alone. I’ve had three cards with amex since 1995 - a blue and platinum optimum and another one. I get notices that the credit line on all of them ws cut - to $200 above the minimum. The blue card had a $541 balance - it’s the card that gets paid off every month - it had a $5000 limit - I never charged over $1k on that card. The other cards had a $7 and $8k balance. In one fell swoop I lost about $20 k of credit and now have 3 cards near the max level - my score is shot to hell now (well and because I am going through an ugly divorce with a witch who maxed out other cards) and the experian report they quote as the reason - no problems reported at all
There has tobe something we can do. Their arbitrary action has had a very negative impact on our credit scores
OMG….they just stop my cashback program…Business Platinum that pays 1% and 5% for gas…mother f….
wow. i didn’t know so many people got cut from Amex. I encountered the same problem. I have 3 cards, they cut 2 to 500 limit back in Jan and now the cut the 3rd one last week. I received the letter stating “housing balance is too high” those who want to see the letter can email me. wow…oh well at least i’m out of debt with credit card and they won;t get a penny from me anymore…..na da!
AMEX sent me an email this morning telling me that my spending had been unusually high last month. This was absolutely ludicrous. I have had months with much higher spending and I pay religiously every month in full. I have been a loyal card member for the past 6 years.
I called and spoke with a rep and asked him what the deal was. He said well, I know that you haven’t received your bill yet, but you could make a payment now, in good faith!!!! What the …….!!!???
I am paying this last months bill and then turning in my Platinum card…..do they realize what the heck they’re doing here…..????
I read that their shares had fallen 11% on Friday…..so “tap” their good customers for cash earlier than it’s due……!!!!!???
Wow…you know what AMEX did today? they called me asked me to join the credit protection that i need to pay 8 cents/dollar balance. I don’t have any balance for the credit card they just reduce to 500. They said, if i’m a member, they can increase back to 15,000 that i used to have. What a great way to sell the credit protection. I need to find an attorney for class action lawsuit.
I got this!
Lately, Cardmembers have been buzzing about our island getaways, insider shopping savings, and those rewards. E-mail us what you love about your Card and get a $50 American Express® Gift Card if it’s published. Write to Blue@aexp.com
I completed the surver and shot emails to blue@aexp.com and also Chris at below. I told them new motto for AMEX “Please leave me alone”
Do You Need Help?
If you have any problems or questions about your American Express account, please e-mail American Express at http://www.americanexpress.com/messagecenter or call them at 1-800-528-4800.
If you have any problems or questions about the survey, please e-mail Chris Parker at cparker@rtiresearch.com.
Your responses will help guide the development of future improvements to email communications from American Express
If anyone is serious, and I hope that you are, I would be very, very interested in pursuing a class action suit against American Express. What they are doing is absolutely sinister and criminal. No one is regulating them or any of the other card companies, but this incredibly bad behavior by AMEX should be aggressively and directly addressed. Please let me know…
Jenny (email: arbido1000@yahoo.com)
Exact same thing happened here. All limits on all (5) cards were reduced in march becuase of “too many revolving accounts” and Purchases made at locations that show you to be a risky consumer.” ?? what Wallmart? Vons? Ebay? Went on vacation after paying 2,500 on one card anticipating at least 5k available - they lowered the limit to exactly $100 less than the remaining balance!
Here is what I have learned:
They cannot lower your limits for 90 days after the last reduction - so calendar plans accordingly because they WILL LOWER YOUR LIMIT MORE even if you are current on your payments.
I would suggest all long standing members request in writing under the Freedom of Information Act all documents AE used in making their evaluations. If enough of us do this it may start to wake them up to treat long standing members with some consideration.
TO Camm above,
Can you provide the statue or law to proof that AMEX cannot lower the credit limit for 90 days after the last reduction.
As for Freedom of Act it’s a good idea. I have credit protection, i didn’t see AMEX pull my credit at all yet they say they use Experian. and some people in the thread said Transunion. Very Fishy.
guys, Wells Fargo is doing this on their Business Line credit cards and probably more! even to customers who have never missed a payment!
Discover just increase my interest from 12.99 to 24.99 because of my credit score. Thanks to Amex that drop my limit to 1000 and i owed 900. My score drops 40 points in one month. I payoff right away but it didn’t stop discover from increasing my interest…time to toss that card on the side
for the 1st time i called the AXP customer service P U S S Y for not calling me about reducing my credit limit. I’m stuck checking out at a hotel with the card declined. Lucky my son Visa card has the money (i dont bring Debit card around). Time to close the account. I like the card for cash back but with this service, i don;t care anymore
Finally i got an evidence to file a lawsuit against Amex. My gold card got denied and they said i need to pay down. I told them GOLD card shouldn’t have limit, and they said it’s above my average spending. This case is the same like internet service provider that said unlimited bandwith but cut it at the back. FInally! before i start the conversation, i told the customer service i’m recording the conversation for the use and reference.
Read article below and file a complain to secure our future. Also send a copy to your senators.
http://www.marketwatch.com/news/story/consumer-hotline-would-make-easier/story.aspx?guid=%7BB156D62D%2DE9F0%2D479E%2DBCA2%2DBBC8DDB4D9EE%7D
I hate to start with “I’m so glad I found this site” because so many of us are in the same nightmare but I thought I was nearly alone in this matter.
I have been quite religious in my use of Amex and managed to acquire 4 cards with them and about $40,000 to boot. Well, now they’re CHASING MY BALANCE (see http://www.nytimes.com/2008/06/21/business/21credit.html?pagewanted=all) and as a small business owner, not tied to real estate but to probate matters, I need a line to help grow my business. Though it will take me sometime to pay down what I owe AMEX, they’ll be paid and then I will mostly likely use my credit union credit card more. Screw the miles and what I thought was an excellent card that catered to me. Now that I think about it, I think I need to cancel some of the monthly services they sell me!
Good luck to you all and if someone does get around to complaining to the Department of Corporations and/or the Federal Trade Commission (they will help you in this matter), and even to the point of a class action suit for damaging our credit scores, I will join y’all!
Peace!
I really don’t have good credit and I was happy I got approved for a 2000 limt blue about a year ago. had a balance of 635.00 just found out tonight my limit is 800. Thought it was fraud, but to my surprise my limt has been lowered. Gee I wonder if they can lower it more after I just paid my balance in full. hummmmmm Only if I knew amex play the unfair credit act.
After searching and reading all this. I don’t feel alone. I thought it was fraud, but turns out amex blue went from 2000 to 800 without a notice. just paid off my balance of 635 lets see how low can amex really go. amex the new name to the unfair credit act.
Never late above min. payment Wished I searched about amex before I applied.
You are not alone. American Express and other large banks are performing these acts on thousands if not millions of perfect payment consumers, and the scope covers all areas of credit from personal cards to HELOCS. The media, as driven and owned by the banks would have “us” believe that this act is a mandatory lifeboat response having to do with managing risk and loss precipitated by the mortgage fiasco which in fact was created by the banks themselves when they threw billions of dollars at unqualified consumers around 2001 with knowledge of their poor risk and just to make a buck. The truth is that the main banks, thanks to affiliations with the Federal Reserve, will always “win”. For the past 8 years of this crony administration the banks have not only made huge buckets of cash via the standard interest-rate way on cards but in addition, have been gloried by corporate tax breaks. Now the tide is turning and the thieves will be driven from office in November via the peoples’ elections. This means no more tax slash for banks. So they’re waking up, albeit groggily and with greed at the forefront, as always, driving the corporate bottom line, they are sticking it to long standing good faith customers without the slightest regard for damaging their credit. This becomes a temporary double-win for the banks as they incrementally raise interest rates to squeeze the last drop and chase the balance to unconscionably wreck the credit of good faith customers like yourself. In order to understand why this happening, you should distance yourself from your personal picture and examine the larger picture objectively. The fact of the matter is that this is a planned operation by the main banks in conjunction with the Federal Reserve to gain substantial control over the populace, whittle down all but the highest class and proceed with the next step in the New World Order. What can you do in response? Well, you can quit spending on your cards and rip them up. Quit living beyond your means if it involves using credit and savor the feeling. You can feed the negativity created by dwelling on their injustice or you can learn new ways of living to free yourself from the clutches of institutionalized banks. Or, you can calculate the damages the banks have in fact caused you by ruining your good credit and might be surprised to find that the amount of those damages just might equal the very amount you owe them. What a coincidence. Wash.
Thanks all for your input. I have a business line of credit with Amex. Without prior noticed they BOUNCED a line of credit check i had written and then sent a letter to me that they reduced my line of credt. BTW, I have not received this letter yet. I have been an Amex card holder for over 10 years and my FICO score if over 760. I’m upset.
Happened to do a search on others getting screwed by AMEX and found this blog. I have been a customer since 1995 and have 3 cards. My BLUE credit limit was just reduced 65%! I called to inquire why and got the standard BS that it appears everyone else is receiving. I then told the rep that I think the real reason for my credit limit decrease was due to a recent charge I had made at Wal Mart, which then sent up a red flag, so AMEX using their “Credit Profiling” decided that I was a risk. And to her credit. the rep agreed with my comments.
My plan is to pay off my card and not ever use it again. Lord knows I can’t cancel the card because I don’t want to damage my credit rating any more after what AMEX has done.
Today I received and email advising me that my credit limit has been reduced to $100.00 over my current balance. I have been a loyal customer for years and have never missed any payments. This is going to have a negative impact on my credit. This is unacceptable. AMEX has lost an excellent customer. Does anyone know if there is a class action lawsuit against AMEX for this?
Seems as if it is an epidemic. My lmit has been reduced for the second time in 6 moths. Like several others here, I opened the account to take advantage of the low transfer rate. Now the credit line reductions are negatively impacting my FICO. I’ll be sure to dissuage ANYONE from doing business with AMEX. With any luck, they’ll crater like Lehmnn Brothers.
Just got my notice. $25,000 to $3000! Never late! I’ve decided to let them eat my $3000 Balance! What a bunch of dumb@sses! 18 years down the drain. No more cards after this! Why let your life be controlled by a bunch money sucking fools. Cash only baby! Good riddens American Asspress
My AmEx Blue ($5,000) limit was canceled today, after my account was reviewed. I’m dealing with a medical collection issue right now, so I’m not that surprised. I am surprised about everyone else. My question is what happens to my accumulated points/miles?
I have been trying to reach AMEX for at least a week trying to figure out why my card was CANCELLED unexpectedly. Everytime I call, I get routed to a recording that says my wait time is over 10 minutes due to an overload of calls. The website is spouting some bologna about a systems update and the one time I did get through to someone, she could not access my account to tell me why the card was cancelled. There is no way to leave an email on the site as that is apparently down as well and I have not received any letters in the mail letting me know what is going on. Anyone know how to get some answers about what is going on with AMEX?? This is really starting to piss me off.
Same here, they haven’t lowered my credit limits yet, but they shutoff my flex pay on the #1 account I use for my business. They did lower the limit on 2 other cards I have 1 was like all of you 100 over what was owed so I had a over limit fee. Being a small business owner I rely on Credit to stay afloat. If this is happening to other small businesses it wont be long before we can’t make payroll and start laying people off… DEPRESSION HERE WE COME!! I’m not really worried about my credit score just for the fact that getting credit is impossible now anyway..
If you shop at Walmart and use your AMEX card, AMEX software will mark you as a potential problem. It really is not based on your credit score or your history with AMEX. It is simply as “profile” and if you fall in this “profile” .. AMEX will reduce/eliminate your credit line. Walmart evidently is in the profile…
Unbelievable…I have 3 cards - today I got an email that my 47,100 limit is now cut to 10,500!! I use this card for my business and pay it off each month, I have 777 ficos - I called and the CS agent did not deter from her “script” I told her I have a mortgage company and my credit profile in front of me I know how this works - there is no “reason” to cut my line, I am in no financial distress. She of course didnt care - I am faxing my taxes and my Report with a nice long letter requesting a re-review. People cannot SURVIVE if our resources are taken away from us. How they can penalize the good credit worthy is beyond my, but I intend to give it my best fight! Good Luck everyone.
I found out both my balances with Delta AMEX platinum and Blue have been reduced by over 85% to $5000 from over $40,000. I have $50 of available credit. Which I discovered when I tried to check in to my hotel for work tonight. EMBARASSING.
Have been on hold for over 2.5 hours.
I plan to contact my attorney in the morning and pay my AMEX bills via certified check by Friday.
Then I will be closing my accounts…after I max out using all of my points.
I am trying to plan my wedding right now. AMEX just lost out on helping me finance my honeymoon.
LOSERS.
One more complaint, I have got reduction from 13,000 to 1000, AMEX just 268 dollars above my current balance because 200 dollars are cash advance , now I have avialble only 68 dollars to spend for the rest of the month, Last year , I did carried balance up to 10,000 and was paid in full evry time , on time before due date within one week of the receipt of the statement.
All other credit cards have not reduced my limits
what I can do , that I am not going to use this card any more, if people want to control them, let them know , credit card companies does not exist in space, they do need consumers for thier existence. there will be time when companies will start loosing business, the poor performers from financial market will vanish in air, and the remaining strong players will take care of consumers,
Just happened to me today. American Express Platinum. Dropped credit line from $28k to $100 over my current balance $16k. I put over $100k on this card last year and was on pace to do the same this year. Never paid late, never maxed out. I spent over $18k last month with them and paid in nearly $20k. Noticed the drop when I pulled up on line this a.m. to make another payment. Tried calling in twice. On hold for over 30 minutes the first time before I hung up, and over 40 the second before I hung up. Finally got an email of the decrease today at 3:30 p.m. That’s about 7 hours after I noticed it was already in affect. What if I had been on a business trip? About to pay for a several night hotel stay? At a big lunch with clients and got declined? American Express Customer Service is the worst ever. This has been the only card I have carried for a couple years. Not anymore. I’m done with them. They don’t have the best interest rates, not accepted everywhere Visa is. In fact, I have vendors actually ask if I can pay some other way because of the high fees they’re charged by Amex.
I’m done with AMEX.
Here’s the most F’d up part about it. When I call in, I get a message saying wait times are in excess of 10 minutes and sit on hold for 30 - 40 until I got irritated and hung up. Coworker calls in, his credit limit didn’t get cut and he gets right in. They have it set up so that if your credit line just got cut, they send you into hold hell. They actually have their system set up so that if you just got your credit line decreased, it knows and won’t give you any assistance.
I call in now and refuse to give my card number until I get a rep, and I got right through. Imagine that.
American Express is likely in a lot of trouble - it makes no sense what they are doing. I would LOVE to be part of a class action suit against them for what they are doing. It is blatantly damaging to too many of us good paying customers who have complied with every aspect of their agreement and been responsible with credit for over twenty years. They make me want to re-think the credit practices I have followed my entire life - I feel like the fool …. and I shouldn’t be feeling that way. They just reduced our limit right after we made a large payment, right down to the level of the remaining balance. They deserve to lose a very large % of their customers FOREVER. And hopefully a brilliant attorney somewhere will come up with some aspect of this that is illegal and start a suit against them. I recommend to everyone in this situation to keep perfect records of everything that is happening from the first denial of credit or reduction in credit line until this situation comes to a head, especially noting any ill caused with other creditors or your credit score that resulted from this action on AE’s part (without notice!). There is something rotten and stinking about this. Write to your Congress Representatives about this and find out if there is anything they can do. At the very least, this is a BAD BAD BUSINESS PRACTICE by AE, that could (and should) sink their ship. They deserve what they are going to get for this move. It is disgraceful that any company would act this way to good customers - there were many better options for how to handle this in a fashion that would not have caused this much alienation - again - I think they must be in deep doo doo to pull a stunt like this. Very upsetting.
I believe that there are thousands of us that suddenly found ourselves in the same boat. I believe that AMEX will soon come to the conclusion that their thinking was flawed. What they have done is to exacerbate the situation for all of us. What interests me the most is what while the government has doled out 250 billion dollars to nine banks to free up credit.. they all seem to be sitting on it, while our rights as credit card customers continue to go unaddressed. All Congress does is continue to talk about the predatory practices being deployed today. I’m sure that until election day we as consumers will continue to receive all the sympathy in the world from the politicians and see nothing done to relieve us of the practices being deployed that are directly impact our financial well-being. Hard to distinguish between the good guys and the bad guys anymore.. politicians or Wall St. take your pick.
I am another person in the growing list of mistreatment by AMEX. I could understand a policy of credit line cut backs with high risk cleints, but like many others I have an extremely long and blemish free credit history as well as substantial financial means. I derive my income from investments requiring financing, the cost of which is directly related to FICO scores these days. AMEX’s actions have caused me DIRECT financial damages, by what I believe are to be their unfair and indiscriminate practices. Where does one turn to obtain some justice in this matter?
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Today I have received mail from AMEX that my credit line has been reduced from 20,000$ to 100$.
I was never late on payment. But there was a collection agency for 100$ by a hoospital on my credit history.Which made them to reduce my credit line. Don’t know how citi/BOA acts now..
Today I have received mail from AMEX that my credit line has been reduced from 20,000$ to 500$.
I was never late on payment. But there was a collection agency for 100$ by a hoospital on my credit history.Which made them to reduce my credit line. Don’t know how citi/BOA acts now..
What a joke AMEX is. I found out that my credit limit had been reduced from $38K down to $2,100.00 when my card came up declined at dinner. I called them up and they left me on hold for over a half an hour. I finally had to hang up. I called back again, this time without punching my card number in, and was connected right away with a service rep. I have never been late with a payment and pay my balance with them in full every month. I ripped into the representative on the phone, but they really didn’t seem to care about my situation. He explained that becuase of a change in my credit score they decided to reduce my credit limit and they have the right to do so per the card agreement. I asked to talk to a supervisor and of course, none were available. I was told I would get a call back in 24-48 hours, but I highly doubt that will happen. They have left me no choice but to take my business elsewhere.
I too got the diss this week from Amex. THey not only reduced my Blue limit but also my Gold flex spending. I called and the credit rep was no help. I just sent an overnight letter outlining how I use their cards for personal expenses as well as for my small business. I mentioned how I have been a loyal customer for 16 years and have spent well over $500K with them and this is the treatment I get. I told them to revise what they have done and issue me a written apology or I will terminate all accounts with them and no longer accept their card with my business.
Well, I am glad to know it’s not just me they did this to. I opened my business last year and got an amex blue business card to xnfr all my large equipment purchases to for a 0% rate till this December. I also have 2 other business cc’s with balances but I pay EVERYTHING early, MORE then then minimums and never have missed any type of payments (mortgage, cc’s, etc). On my personal amex they lowered my credit line from 5k to $700!!!! I had a $500 balance on there. Their reasoning was my mortgage loan was too high. WTH?!!! How does my mortgage, which I pay early every month, have to do with my account?
Then my blue business card had a $10k balance with a $21k credit line. They just emailed me 2 days ago telling me they dropped that down to $11,500 because of credit history. Excuse me… I was livid. I called them up…. they used the same excuse of my mortgage.
I explained this is a business card… I am using this to run my business… without the credit to be able to purchase supplies and equipment I can’t sell those items and can’t make the money to pay the freaking card. uh.
I am doing a xnfr to get rid of their card. I am not closing the card as that is not smart, but I just will take it out of my wallet, xnfr the balance and not use it again.
I really was hoping for a good experience with amex, bummer cause they have ruined my feeling of them.
My husband has been an Amex customer for 30 years! About 2 weeks ago his flex account was cut off. We are allowed to use our card but all charges must be payed in full.
That is fine, I would like to pay the flex off anyway. The part that bugs us is that Amex called to tell us when our next payment was due and how much. We pay our bills on time every month.
Another odd twist. This past Sunday we went to Costco and purchased $200.00 worth of items. The person in front of us was taking forever! The line didn’t move for over 15 minutes. Turns out they couldn’t process his Amex. Then ours wouldn’t go through nor the guy behind me. Turns out, anyone using Amex was unable to get their transaction processed using that card. Clearly Amex was the problem because our debit card went through.
We use our Amex because we get points every time we do. Every Christmas a lot of our shopping is done using the points. That is why we use Amex. That and the fact that for over 30 years we have had a good relationship with them.
I was angry at first but I realize that Amex is in some sort of financial crisis. They have to be or they wouldn’t suddenly start pulling back peoples credit.
My solution is that I will stop using Amex, I will use my debit card only and pay off the flex account by doubling up my monthly payments.
To tell you the truth, My husband and I were mortified when they cut off our flex. We felt like losers but it turns out they are probably doing this to most of their customers. I wonder how many of them will be around when the market gets better?
Same thing here. My Blue account limit just got cut in half, from 14k to 7k. My balance is under 6k so I have some head space there. I have never used the card for purchases and have always paid more than the minimum on time. My FICO score is over 700 and I can’t see how I was a risk to them. I was getting a great 2.99% rate with them from a balance transfer. I did everything right and now they are going to F up my credit rating for NO reason.
Well I know what card I won’t be using once that BT is paid off….
I just canceled my OPEN account today. I will NEVER ever again become and AmEx customer. First, they reduced my Blue card down from 14.4K to 500 dollars. I didn’t even carry a balance on it. Just gas here and there. Then, today, my bank called and said that my check from my OPEN account was denied. I had a 10K OPEN account, used 8K for some business expenses and they cut the line to 1k. Thankfully I had the cash to cover the 8K to the bank. But, I bounced other checks because they didn’t notify me they were cutting my line. I called and customer service didn’t care. AmEx sucks. I canceled my account and will never go back.
AND…I have a 768 FICO!
Never been late with a payment.
my wife just got an email today from AmEx saying they were lowerring her credit limit. After calling AmEx they tell her the drop in her credit limit was due to a review of her credit report and $hit. After reading all the coments on here I relized that my wife and I used our Blue Card at Walmart last night for some last minute Halloween things. What a load of crap how is it legal that they can lower your credit limit and through that your credit score just for shopping at Walmart? It looks like the begining of a downward spiral for us all: one card lowers your limit which lowers your score which flags you to your other credit card poviders which in turn lower your credit with them which continues to lower your score even further. the idea is disturbing to say the least.
AMEX CAN DROP DEAD! I have 4 AMEX cards with $75K limit total. On two, I have balance xfers currently at $20K each, one at 1.9%, other at 3.9%, paid down from $30K each. They just cut $10K credit limit off the card with the 1.9% balance. I told them, why should I pay off a 1.9% balance xfer when I’m getting 4% on my savings? Now, that card looks maxed and will F–K up my FICO score! They said I should pay down my balances! Another review in 3 months. I won’t, don’t trust them, they will cut more credit if I pay them off. I’ve shoppped at Wal-Mart for years, don’t think that’s the issue. Plus, they just offered me a Gold Amex charge card, not credit, I can buy as much as I want but have to pay it off each month. Plus, they used to let you juggle the avail credit limits among your cards online, now they don’t and said they won’t do it for you if you request it. F U AX!
About a month ago I went online to look at my amex accounts and had a suprise. I have four cards with them a green charge card, a delta gold, a blue and clear card. My delta gold limit got reduced from 13k to $500 and my clear got reduced from 10k to $500 and my blue got reduced from 7k to 5k but only because my balance was $4800 which max’s me out. so I went from having 30k in credit with them to 6k in one day. they lowered all 3 at once. no change in my credit even though they claimed I have over 700fico score. been with them for 4 years. and my green card they won’t even let me use at all only on a 3 dollar purchase here or there it would get approved. one time i called them because my green card got declined for $100 purchase and they said they would feel comfortable if i make my payment that’s due even though it just came to me and wasn’t due for 3 weeks!! F american express i hope they lose all their customers.
The same thing happened to us. We never received a letter from amex until we called to complain. No valid reason was given. They tried telling us we had something on our credit report that prompted the change. We requested a copy of the credit report they advise they pulled the information from and of course, our credit remains to be perfectly clean. The receptionist could not explain this. It’s easy to avoid using AMEX, it’s upsetting to know that the almost perfect credit score we have sacraficed to maintain over the years, is at risk because of this ridiculous act. There has to be other options for us. We shouldn’t have to take this with out a fight.
Well, add me to the group of angry customers who will NEVER use Am Ex products again. I have a small business and I have an Am Ex Business Capital Line that we rely on. We charge product, pay it off, charge product, pay it off… This week, they just reduced my Line down from $15,000 to $12,000–doesn’t sound drastic, but of course that is just above the balance I owe. I’ve had the card for years, same as everyone else, no late payments etc and always pay way over the minimum (and, since I own a Toy Store, always pay the whole thing off in January). We don’t have a bad mortgage or any problems on other cards either.
Looks like Am Ex may be trying to “chase” my balance. Well, I’m going to pay the whole thing off in January as usual and then tell Am Ex where they can stick it. My shop will also STOP taking their card immediately. I see in the news tonight that Am Ex just slashed 10% of its workforce AND has predicted a bleak future outlook. Well, they are making it bleak THEMSELVES by cutting off their good, paying customers–I don’t know how they will ever crawl out of their hole if they can’t tell the difference between a good customer and a bad one, and if they STOP offering the ONE product they truly have–credit.
If ONE RED CENT of the government bailout goes to Am Ex, it will be an injustice.
THIS HAPPENED TO ME, WHY IS THIS NOT AN ILLEGAL PRACTICE, I WANT TO BE A PART OF A CLASS ACTION SUIT AGAINST THEM TOO, THEY ARE SCREWING IT UP FOR THE GOOD GUYS WHO ARE PAYING THEIR PAYMENTS-NEVER LATE AND LOWERED MY CREDIT ON BOTH PLATNIUM CARDS
Its like they know that I was going to pull out the full line and burn their ass when I filed BK.
Amex has asked the Govt. to bail them out! Greedy darn banks, they screw their good customers and then ask for a bail out.
I am not just ticked at the banks,I am ticked at the people who bought homes they couldn’t afford and then stopped paying their bills.
In the end they all get a bail out but honest hardworking people who pay their bills and mortgages get screwed.
My AMEX Blue, like most of you here, in great standing. Never been late and always more than min payment made. My credit is impeccable, not one derogatory; yet, AMEX found it necessary to reduce my limit from $13K to 1,000 above my Bal of $3800.00. I am all for a law suit, not so much for the credit lost, but the NEGATIVE Fica Score IMPACT!
Just like everyone else here… My balance was decreased and FICO score droped 40 points.. now i’m in the 600-700 range which puts me as “high risk”. I have a blue card used mostly for business expenses…since my employer does not provide me a card. Unfortunally it is my only credit card…never late. My card is alwyas paid in full each month. I’ve had an average of $1500 the last few months, but now my job is at risk as I need to travel for 2 weeks on a $1000 credit line..lol Used to be 20k…thanks AMEX! I understand the credit crunch, but they didn’t have to kill my score to prevent me from getting another card. They need to be suied for this behavior!! and should disclose thier “red” flag retailers (ie. walmart) causing “Irregular Activity”
If your account has been “adjusted” and you call in to discuss, you enter your account number. If you notice, the holds are long and they answer by their last name. “This is Mr. Jones, Smith or whatever.” The regular customer service dept goes by their first name. That’s why some are getting right through.
I have had three cards with AMEX cards since the mid 90’s. All three credit limits have been reduced. The cards have been used and paid responsibly. My FICO score has also fallen. This is the part that upsets me most. I am angry at AMEX and Experion, etc.
I send letter to my senators and FDIC for NO on bailing out banks. WHy? Because they turn back and hires India call center with our tax money. This doesn’t help us but our tax money went to somewhere else??? They need to put provision on bailing out banks.
Reduction in limit happened last month, from 19.5K to $6600, balance was $6400, so now debt ratio is max as opposed to 30% (13yr plat optima), still have 20yr gold card with flex, no change yet. Never late,make enough income, will transfer balance but damage is already done, scores will go down people, were notified via mail, made callsame story as others about experian but no change there. Have many other cards with balances at around 30-40%, funny just got invitations from chase, BofA and others all increasing credit lines, Amex just ruined your (and mine) pristine credit history for no reason, make sure you don’t use their money or services after you get out from under them, I will not, that’s a promise!!!
Ah…great…just saw the news that Am Ex has been approved to become a bank holding company, and so they ARE now eligible for federal bailout funds.
Great. That means one of several equally disturbing things:
They cut all of our credit because they really didn’t have the funds to lend out any money anymore -or-
They cut our credit lines to manufacture or worsen their crisis so they could get the federal money -or-
They are just as incompetent as they seem.
Also, I agree with above poster that Am Ez should be required to close their overseas call centers if they take this USA Federal bailout money.
Finally, SOMEONE should bring this thread to the attention of a good reporter.
Like many other stories on this post, i have had a decade long good history with American Express (they always automatically increased my limits) and received a major credit line reduction this past month that makes it appear i am about to max out on it. My anger stems from the fact that I keep getting invitations to join their platinum program–why am i pre-approved for that but get my credit line slashed for being nothing but a good customer??? I will definitely be searching for a new card to replace my use on this one–oh, by the way i keep getting 0% credit offers from all of them!!! I have worked so hard to keep a good credit score and now it will be wrecked by their own poor decision making. For all of you out there looking to switch-move to Capital One. My brother works for that company and they are in much better standing through this financial mess than AMEX. Just dont cancel your AMEX-that will bring your credit score down more.
We have been a loyal customer for over 8+ years with multiple lines of credit. I was appauled to see that our lines of credits have been slashed by over 50% now leaving me with debt-to-income ratios off the wall, lowering my credit and no spending capability. American Express used to send automatic rate increases and I’m seeing across the board with family and friends that AMerican Express has taken a BIG stand to not be there for their customers. I can see others that have high credit risk,lates, non-payment history. If anyone knows of another good CC company to go to e-mail me. I’ve had it with American Express penalizing loyal, good customers.
If they would have simply said sorry credit crunch is taking its toll on the company I would have understood, but instead they insinuated that my credit was the problem. I also have a high FICO score and have NEVER been denied credit for any reason.
After all this I believe amex has just lost another customer.
American Express…. Don’t leave home WITH IT!!!!
They are crooks… I just had my limit dropped from $19K to $9K, they insinuate my credit is bad but experian reports 725 (good)… They say I have too much real estate debt based on income… Interesting I RENT!!! Crooks, the Feds should NOT bail these clowns out.
Looks like Amex did a mass credit limit drop across the board. Dropped my from 31k to 10k and I had 9700 on it. Found out when I attempt to charge something and it got denied. My credit score is 750+ so this boggles the mind. Then they send me a letter insulting my credit worthiness.
Just send a 5k payment and will pay the remainder in January. Amex loss me a customer for ever.
Glad to see we’re not the only ones. Amex tried to freeze my account one day after the closing date unless I paid the entire amount right then, even though the due date was twenty-five days away. I don’t know what I said to convince them to do it, but I paid half that day and have scheduled a payment for the balance for next week, which will mean that I paid in full one week before the due date listed on my bill.
I’ve found that I have to keep track of this account every second. The website helps. They cut my husband’s credit limit on his card - slightly, but it would have been enough to cause charges to be declined because he’d run some large charges that cycle. Because I check the accounts frequently, I caught it before they sent out the official notification and just made an early payment. They haven’t played that game since. I also check the account status section before I use the card to make sure that I’m not going to be hit with any “surprises”.
Oh, and the trick with being unable to contact them by phone if they’ve done something to your account? That happened to me yesterday- had me on perpetual hold, when all I wanted to do was ask a question about Membership Rewards. Called in using another account number and was put through in two seconds. I must say that the account rep was a little embarrassed when I pleasantly remarked that I couldn’t understand why I was able to contact them on this account but not on my other. He did answer all my questions, though
had 2 Amex cards since 1992 and never missed a payment and paid card off every month. They slashed one card from 25k to $500 and the other from $26500, to $1400. I am thinking a pursuing a class action lawsuit against them