CHESSNOID

This is the latest comment I received on my amex post recession-forcing-american-express-to-target-profiles-to-decrease-credit-limits.

I thought it was important to get Steve’s message out and his comment is buried near the bottom of the post.  I think this could possibly benefit those who still have cards with redeemable points before they are mysteriously “canceled” by unknown reasons.

Steve:

Word of Warning for all of you that are having credit amounts reduced and collect Membership Rewards Poionts. In Dec 08 AMEX lowered my credit from 13K to 2.3K. Just a couple of weeks ago, my card was rejected at Costco. Turns out AMEX cancelled my card and took ALL of my Reward points. They explained it was cancelled due to credit score.. My credit score has been stable for the past two years.. I’m exploring all of my options, but am committed to inform everyone possible of this unethical practice by AMEX

Steve got the triple whammy with a credit line decrease,  card cancellation, and then lost all his American Express reward points.  Many customers including myself actually use cards to build up points for rewards.  Sometimes, loyal usage of a few years on specific cards like amex to get bigger prizes.   Personally, I have used my different credit cards to get many things.

I have received gift cards for BestBuy and was able to obtain a laptop for free. I have also received gift cards for Apple iTunes, Starbucks, and other stores I shop at. I have also received 2 sets of travel luggage, airplane tickets, and hotel stays. I would guess the total value for these items would be about $2500.00 or more.

So I think what Steve points out is important.  Use those points asap because your card may be canceled without merit and definitely without notice.  It would be a gamble at this point  to save up for something bigger and then lose all those points before you could redeem them.

I have over a 100 comments on my original post where everyone describes how they have perfect credit, high FICO scores, and no late payments with amex but all their credit lines were reduced just the same.  That post was back in February 2008 and is just a small sample of how many people amex did this too.  I wouldn’t be surprised if amex cancelled a majority of all those people’s cards.

If we put amex in the context of our current economy, then we have to remember they have laid off over 7,000 employees, converted to a “bank” status so they can get their dirty hands on some of that FRAUD BAILOUT money funded by American Taxpayers, and their stock price is now trading at its 52 week low. Canceling the cards and not having to pay out on the redeemable points must save amex a ton of money. At this point, be prepared to use those points now or lose them later.