American Express losing future potenital business

Just another comment about American Express from my previous post Un-American Express targeting profiles to decrease credit lines from a while back. I definitely can relate to what everyone is going through. I was actually contacted by the NY Times and Bloomberg about this situation. I told them basically what everyone is already going through. American Express is simply trying to minimize its future potential losses even if it means alienating its customer base.

I think if American Express just told the truth that we are cutting everyones’ credit limits because the company is doing poorly instead of trying to put the blame on its customers who have been loyal and never been late, then they wouldn’t lose future business. By providing poor service and lying about why the credit limits are being cut will only make their customers mad.

It is the same theme in all the comments I have received on my different blog posts. The latest one is:

Jessica Loeb on 08/01/2008

I agree I have spent this entire week battling with am ex. First they tell me Experian contacted them because I had applied for a cc and was denied in which I was but at the same time I was awarded two new ones from different banks. I only applied to that stupid Hawaiian Airline one for a free ticket. man have I gotten more than a free ticket to fly in the sky. I have gotten a quick down slide to hell. Then they tell me I have too many balances ratio to my salary. The new one is that I am not making large enough payments on my other accts and they will review my accts in 6 months now instead of three now.This is an out and out lie i pay 10 times over the min payment on the three cards I have. I just paid 450 in May for my Plat. card I have been a member for 23 years I have 4 accts currently with these jokers that I use to rave about. They put a lousy 1,300 credit limit on my plat card. I have NEVER been late missed a pymt and have always paid all accts off as soon as i get e mail notification. They even admit to me that I have an excellent credit payment history with them but this is their decision. i really don’t want to close my plat but on the other hand I don’t want to give the idiots my business anymore. I have to travel a lot and the plat card gets me places I couldn’t go. But what good is a 1,300 credit limit? I have visa cards and master cards that i can use for more than 1,300. It is a personal insult to me and I have to think about what to do. I just cannot believe the lies they are giving me. I am thinking about making flyers and taking them around to all of the stores here in Scottsdale and let them know what Am EX is doing to their customers. People are going to close these account vendors do not like am ex anyway because they charge so much but they take them because so many people like me use them. Any suggestions?

I do understand what American Express is trying to achieve in the short term. What I think they fail to understand is that once the recession is over and economy gets back on track, these people will go out of their way not to do business with them. Nobody wants to be lied to or insulted which is what American Express is making their customers feel like.

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Matt, August 23, 2008:

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.
sarah Vincent, October 24, 2008:

AM EX is really pissing people off. Me included. I am not about to stand by and let them click my credit limits off one by one. I cannot wait to see what they will do when I close all of my accts on them. I think what they are doing is not within the law. I am looking for a credit attorney.
LillyRose, December 31, 2008:

I have been a customer for 10 years – i used to swear by Amex…I recently had my credit card reduced from what was a “no limit” card to $1700 monthly limit -PS never received a letter stating the change- Okay fine knowing that we are in crisis..i dealt with it ..HOWEVER not even 20 days later..on Christmas eve of ALL DAYS..i go to use my credit card and was declined…”Please contact Issuer”.thinking that it was an error..I call Amex waited on the phone for nearly an hour and a half….to only be told Amex has decided that I am a risk to that i have to many outstanding CC with revolving credit …hmmm I have ONE other card..ONE..I was never late …my credit score was reduced due to an error on another creditors misapplied payment and they corrected it with Experian…AMEX did not care …said oops sorry if I would like to reapply for the card ..I may ….. I WILL NEVER DO BUSINESS with Amex again…they treated me like I was trash…easily discarded..I have successfully convinced nearly 10 other people to close ther Amex cards based on my experience….HONESTLY they will be in serious trouble they are alienating good standing customers because of there poor business decisions……..I will NEVER return to Amex…and many people have agreed with me …LOL when the market turns around the same people they have discarded recklessly will never return..AMEX never leave home without it ….CRAP –AMEX LEAVE IT HOME…your better off ..Definitely LEAVE HOME!!!!!!!!!!!!!!!!!!!!!!!!
jessica, April 13, 2009:

AmEX must have lost a lot of income as they took all limits off my cards. It will however take me a while to trust them. Too bad because they were my favorite card one you could always trust. Let’s hope they have learned a lesson from customs that were always faithful and kept in good standing with them before they go decreasing or putting such limits on the card.