221 American Express credit line reduction comments
I blogged about my personal American Express credit limit reduction over a year ago and that has probably been the most visited post I have. Basically after someone does a google or yahoo search by typing in key words like:
american express reducing credit limits
amex decreased credit limit
american express lowering credit limits
They wind up here. I get hits and comments everyday, so most of the recent stuff gets buried. This last comment I received seemed worthy of a highlight:
Jane:
First they told me I had derogatory remarks that were JUST reported from Experian (wrong…downloaded my credit report and nothing new),
then they said I had too big a debt increase (wrong again…with income tax, we closed out 3 credit cards),
finally after speaking to a supervisors supervisor (who really knows; it could be the janitor), she blurted out that American Express “reserves the right to decrease credit limits”!
“Ahhhhh! The truth finally comes out”, I said. She was pretty exasperated with me, but I was never rude.
They want me to fax my whole credit report to a new fax number (the first fax number was bogus 1-519-750-6088); the new number is below in an email they just sent me. All of a sudden, they’re willing to ‘review’ my credit report!:
Response (Lincoln Henderson) 04/14/2009 01:13 PM
Dear Jane,I contacted our Account Services department and inquired what was needed in order to have your Line of Credit reviewed.
I was advised that a copy of your revised credit bureau report, including the FICO score or Vantage Score would need to be faxed to:
1-519-750-5943
Attn: AA/ClericalAmerican Express
RLA 3RD Floor
7701 Airport Center Drive
Greensboro, NC 27409Please include your Name and complete Card Account Number on the fax. Should you require additional assistance with this matter, please contact our Account Services department directly at: 1-800-842-5303 (24 hours a day, 7 days a week).
Sincerely,
Lincoln Henderson
Email Servicing Team
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I had a similar experience with American Express. They reduced my lines, without notice from $34,500 to $5,100 and another card from $15,000 to $1,000. They asked me to send in proof of income by way of the first two pages of my tax returns from the last two years. Apparently, according to the supervisor, they had a understated income amount on file for me, although they refused to tell me what it was. I’ve beena customer of American Express for over 20 years. I faxed the information over to the RLA Department on 4/13/09. This morning, they confirmed receipt on 4/16/ and said that it takes 5-10 days to render a decision and that I would be notified by mail. Because of the reduction in credit, I’m now in danger of having my overall FICO scores lowered because it now appears that I’m utilizing over 95% of my credit line, and that isn’t so. It was barely 20% before the reduction. Their actions are criminal at best and something needs to be done to prevent this heinous behavior.
Hello, I work for the RLA department. I’m just an operator that takes calls and informs on an action taken on the account. An automated system sends out a letter THE DAY the action takes place. I can see how this can be annoying, seeing as how mail takes a bit. If you get a hold of “The Credit Department” or “RLA” do not even bother requesting us to make a change to you account, because we do not have that authority. We aren’t the bad guys here, AMEX is. We just relay information. But to answer some questions, AMEX will take your credit profile and calculate a percentage to how much of a risk the cardmember is to the company. We are not at liberty to share this percentage, or mention it. The whole point of this comment was to shed some light on what exactly the RLA department is.
Ok here is a suggestion. Make minimum payments and use the extra money to create a credit fund which you can use as your own personal line of credit. Not only will the money always be available but you will have a zero intrest rate and the line of credit will never be cut. And as long as you pay back what you “charge” from your account, the money will always be there. You can continue to add money to “raise your credit limit” It is a hell of a lot eaier to lend yourself money.
I also work in the RLA department taking incoming calls. I can confirm that we have no authority to do anything, the decisions is final. We are just tasked with giving the card member the “bad news” and to attempt to end the call as fast as possible. The computer system calculates the risk of default each card member has, and specific actions (large payments, buying something at the same store another card member defaulted that also used, having a loan from the same company a card member defaulted had, requesting any change to your credit limit, late payment, etc) will cause the system to reevaluate you. If you do not meet the criteria they want (fico score above 750, chance of default under 1%, debt-to-credit ratio less than 50%) then chances are you WILL have adverse actions taken against your account. One single late payment with another creditor or even worse a derog. public record or collection filed against you and you’re likely to get you’re accounts canceled. If you have a COSTCO amex card you’re likely to get looked at even closer. You’re FLEX payment options on your charge cards will likely be suspended if you’re even a hint of a risk, you’ll get limits placed on your charge cards. They are aggressively weeding out anyone that is even remotely risky. The card holder agreement you agreed to allows them to change or cancel your account without reason with proper notice (Within 30 days of the action). Anyway, basically what I’m saying is that when you call in and the person you talk to they have no authority to do anything (even the supervisors you can talk too have no more authority), so there is no reason to be rude or cuss them out which happens all-to-often. Amex wants their card members to pay-in-full, not use more then 10% of their available debt and to never be late. Amex has a much higher standard then other credit companies.
I call BS on “Adam”’s post from AMEX. They do NOT have a higher standard than other credit card companies. Check their current default rates..higher than Capital One!
They have caused this problem for themselves and have NO ONE to blame but themselves. I had $95,000 in credit limits cut to $1,000 by them because of where I shopped and “excessive inquiries” (2!). I am on a mission now to notify EVERYONE I come into contact with that AMEX is NOT to be trusted. They could care less that I charged and paid in full nearly a million dollars with them in the past few years.
Sorry, “Adam,” and “John” from the RLA department. If I were you guys I’d be looking for a job. Myself along with THOUSANDS of others hope that AMEX goes bankrupt. I am sickened that MY taxpayer dollars went to subsidize your shady outfit. Rot in hell AMEX.
No kidding – those f*ckbags at Amex finally reinstated my account after giving me the wrong fax # to RLA, forwarding my calls to every dept, and generally admitting that no one knows what the hell is going on. It was one great big beautiful reach around, people…
My advice is fax the paperwork in and continue to call daily. The reasons for my account cancellation were totally bogus and I proved it.
After finding this blog, I realize I am not the only one!
This American Express are nothing but LOANSHARKS – like the Mafia. I called them last June to set up a Care Plan because of a change in my cash flow and they were great – just pay so muh a month for a year and the amount will be paid off – we won’t notify the credit bureaus and we will consider reenstaing your cards. Ok – great – paid for 6 months – they did a review of my accounts and cancelled them all and reported me to the credit bureaus and used their lame excuse that they had a right change theoir agreement anytime they wanted. I will pay the balance soon and be rid of this company. Is there any recourse I can take? Does anyone have a lawsuit against them for a similar problem? I have heard rumors that American Express wants to get out of the credit card business and become a BANK. There are better cards out there to use. Stay away from Discover – they are worse. Good luck all. My advice is to have only one card and to hell with the others.
WTF?! I applied for an Amex card and after I got an initial email saying that I was accepted and sent me the cart shortly afterwards, I received another letter stating to call them. When I did, I find out my card has been cancelled (even before I could activate the card) due to “derogatory remarks” as well as “collections” issues?? So I check my credit report and score and I see nothing of the such. I call them and they keep telling me to call Experian. WTH? Experian is automated and wont help for crap. I feel like AMEX is being very shady and making me worry about identity theft when all along they’re just chicken sh*t to say we dont want to accept you even though you have EXCELLENT credit. WTF???
The posts on this blog could have been written by me. The reasons given by AMEX were identical and similarly baseless. It appears that there is no “RLA Department.”
Of greater concern is the fact that AMEX is instructing card holders to disclose their personal and confidential information to and third party that is not in the United States. The 519 area code is in ONTARIO CANADA (Bratford). The address and phone list to a company called NCO Financial Services (www.ncogroup.com). They are one of the largest collection agencies in Canada.
I too was told to fax my credit report and request for reconsideration to 519-750-6088. My credit report is 28 pages. The fax line is very slow. That cost was $35.00 plus tax on AT&T. Look at your phone/fax line charges and you’ll see that AMEX instructed you to fax a “letter to them” that was, in fact, an out of country third party that cost you about 1.50/min.
The fact that AMEX has intentionally misrepresented that the NCO Group was AMEX is unconscionable. AMEX induced the disclosure of privileged, confidential and sensitive information (your credit report) to off-shore third parties who have NO RIGHT to receive or possess that information. If there was ever a enabling of identity theft, this is it.
The post from the American Express email servicing team :
“I was advised that a copy of your revised credit bureau report, including the FICO score or Vantage Score would need to be faxed to:
1-519-750-5943
Attn: AA/Clerical
American Express
RLA 3RD Floor
7701 Airport Center Drive
Greensboro, NC 27409”
is giving an Ontario CANADA phone number (NCO Group) and representing that it is AMEX.
Check your phone bills and your credit reports — they are now in the hands of NCO whoever they may be.
I am in the middle of this nightmare right at this moment. I am horrified to know that the number the “supervisor” gave me was in Ontario. I am on hold with AmEx for the third time today. Our credit limit was lowered with the same BS explanation about an Experian report, of which our information is stellar with a zero balance on all of it. The last AmEx rep told me that an analyst would look at my credit report on a first come, first serve basis but could not tell me if that would be in six months or six days. He could not transfer me to that department When I asked him if that meant I was to just sit on my couch and wait, the answer was yes. I loved this company until Friday. Now, they make me sick.
Okay, so after sifting through all of these comments I’d like to clear up a few things. #1. Yes, Amex did take TARP funds and has since been one of only 10 companies allowed to pay them back IN FULL.#2. If you have had your credit reduced there IS something in your credit profile(whether you want to admit it or not) that has caused such action to be taken against you. #3. YOU have borrowed money from someone else when you use your credit or charge cards therefore the people loaning the money DO have the right to tell you how much you can borrow from them. And finally if you really did have another option you would not be fighting so hard to keep using an account from a company you claim to hate.If they are so terrible go elsewhere.YOU DO HAVE OPTIONS.
Crystal,
You are right on #1, wrong on #2, and clueless on #3. Read my previous blog post before claiming to be so righteous. You come across as very ignorant or a person without any experience with credit.
Recession is forcing American Express to reduce credit lines for no reason
I recently got my credit line cut as well. For all the same reason as mentioned previously. I have sent my credit report to the 519 number. (used and internet to fax number, so I don’t think charges will apply) I’m awaiting the outcome, but realistically, I believe that after 10 years with AMEX, I might be looking for a new company, because this is a terrible way to treat a good customer.
All I an say is DITTO! Mine is a little different, and worse. They actually took it upon themselves to CANCEL my credit card because they did a review on my credit, and since I only have a mortgage, NO Car Payment, NO high department store card balances, and only use AMEX as my card-paying off the balance each month—–they think I’m a risk!! Since I am not in debt up to my eyeballs…I am a risk. Interesting formula! I said after 18 years and no late payments, you are canceling my card???? Yes, due to the summary Experian sent them…yada yada yada. I faxed my pristine credit report to them, and now they should GROVEL to get me back! Crystal, I disagree with you, as there is nothing on my report to show otherwise. THINK OUTSIDE THE BOX PEOPLE! I AM A GREAT SPENDER/PAYOR! In my opinion, from reviewing this and dealing with them myself…They are cooking thier own goose! I’m going on a cruise at the end of the month, so think about all they have lost out on! Adios AMEX–
First I want to thank everyone here who has taken the time to post a comment.
I was looking for answers as to why amex wouldn’t let me charge anymore on my card,
until i pay off my current balance. Which is before the date I usually transfer payment via bank wire.
I have paid this way for years, never late, always in full. I received an unusual email reminding me to pay the bill.
Then the next day a phone call at work, informing me pay up now or the card is frozen until I do.
They told me that they use Experian for info and something came up that was cause for concern.
They wouldn’t tell me what. I was glad they called me first as opposed to embarssing me at the check out counter with my card not working.
A supervisor gave me a telephone number To Experian. To add insult to injury the
number was not for them but for a credit repair company. I immediatly thought that I must have been a victim of identity theft and could not rest until I found out why.
As soon as i got home I ran a credit report on myself from Experian. There was no unusual activity. My open accounts said open/never late.
I paid the extra $7.95 for my vantage score. Now get this. My credit category was “super prime”. My score is 990 0n a scale of 501-990.
They say it Is higher then 99.10% of U.S. consumers. So now my mind is at ease and I will be putting my amex card to rest.
Had they had a legit reason I could understand. I wish amex luck with replacing my business
Amex are real but-heads. Three years ago I spent $350,000 on my five cards. When the recession hit, they quickly cut me off and sent a couple of my accounts to NCO Financial which are managed by people in India. I had some real nasty discussions with an idiot who claimed his name was Richard … how many Indians are named Richard? I paid off three of the five accounts and bk’d two others. But they show all the amounts as owing and refuse to speak with me about the matter. One company they assigned an account to for collection has never even contacted me. These folks have ripped people off for years by charging high discount rates and proclaiming that they have a superior level of service. But when the chips are down, they come at you faster than a speeding bullet. Lousy company … I hope they sink in their own quicksand.
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