CHESSNOID

The most reason comment on my post deserves its own post. He is the 135th comment so is buried deep at the bottom of the blog. (Here is a link to the original post).  I think this happens more often now than before.  Not everyone is aware what credit card companies are doing.  They get hijacked at the point of sale.

Kevin describes his recent experience:

This is absolutely amazing to me that amex is getting away with this. I am on vacation with my family, and find out my credit has been reduced to the balance owed roughly 7,000 from 35,000. I am ok with amex making whatever decision they like, but not notifying consumers of their intent to do so is in my opinion borderline illegal. I am stranded on vacation with my family, and have to ask my family to wire me another card do I can pay at check out. perhaps if the federal government took the same position with Amex as they are with us good standing customers, Amex would have had to declare bankruptcy instead of relying on a handout from the very people who they are accuing of not being credit worthy. I have been with them 10 years and never missed a payment or even been late, and if this is the thanks I get, then screw them. I spoke with the executive office Jessica 800-297-6197 ext 65077, if nothing else pester the hell out of them.

Most cardholders take this card because in the past it has been reliable, when they last check the credit limit status it indicates there is plenty available, and because there are reward points they have been accumulating over the past few years.

Originally, I think I was one of the first ones to have their credit card limits reduced. I think I was flagged originally because I work in the finance field and I live in the high foreclosure state of California. When I first discovered my credit line reductions, I googled it and didn’t find much so I blogged about it. Now, people with the same experience are googling it and reading all the comments of similar experiences.

Unfortunately, once you have come to my site and read this information, the damage is done. You can expect to see your credit score drop between 25-75 points depending on the rest of your credit profile. I believe my credit score dropped over 50 points 2 months later as a consequence of Amex’s actions.

If I had known what I know now, yes I would have canceled all my Amex cards before the credit line reductions.  Other card issuers like visa, mastercard, and discover are doing the same thing now, but Amex was the first company I was aware of that systematically reduced credit card limits based on profiling instead of true credit-worthiness.

To read my other Amex posts along with the many comments, click here or on the Amex category tag.