Amex credit card class action lawsuit
Over a year ago, I posted about my personal American Express credit card experience where my credit limit or credit line was drastically reduced overnight. I have received many comments on that post. I am still getting comments and as more people experience the same actions against them, they wind up here at my personal blog.
One of my readers Janice apparently has taken this a step further and contacted an attorney and made in inquiry. This is her comment from that post:
Fellow Amex Sufferers,
Someone posted a comment that named an attorney in CT that’s willing to take this on as a class action lawsuit. I contacted him this week and while he hadn’t agreed to take on the suit and didn’t have a conversation with anyone with regards to this situation, he’s now very interested in taking on a small group of us as clients and filing a lawsuit against the evil Amex to “test the waters” so to speak. If he has any success, he feels that it may pave the way for a larger class action movement. His retainer is $10K and can be split amongst the plaintiffs of this initial suit. Please email me @ jsmith7500@aol.com if there’s any interest in participating.
You can see all comments on this post here:
http://www.totalnoid.com/2008/02/24/recession-is-forcing-american-express-to-reduce-credit-lines-for-no-reason/#comments
If we get 100 people that would only be a $100 a person or 200 people at $50. I am not a big fan of attorneys and they always seem to promise more than they can deliver, but I would be curious to see where this could possibly go. Let’s see where this can take us. I will post any updates on my blog.
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I am furious with
American Express for the inability to manage their business accounts. A customer with American Express since 2000, our credit has been continually increased (unsolicited by us), and now has been decreased with no prior warning and with no reasonable explanation. We have an outstanding credit score, no late payments, only one other credit card, a very low mortgage, and have followed every rule in protecting our credit rating. Our limit was decreased from $24,000 to $14,000 in January 2009. Then in April we were decreased to a ridiculous $3600. We charge a minimum of $3600 per week and make multiple payments to the card per month! And look out Costco. We spent over $70,000 at your stores last year. Most of this was charged to our American Express card. Since you allow only American Express charges at your stores, you will be the next to suffer. We can no longer give you our exclusive business!
The truly infuriating part of all of this is the route that the executives at American Express have chosen to approach this problem. First of all, the limit was reduced without prior notification. I received a letter in the mail an entire week after the deduction. Then, when calling American Express, their customer service is horible! If we treated our customers like this, we would have been out of business years ago! The line of baloney that their reps are giving out over the phone is nonsense! Pure lies about our credit rating and history! They claim they have reviewed our credit. This cannot be true. They then asked us to fax to them our own credit reports for their review. Now, why would this be necessary if they had supposedly already reviewed them!
I could go on and on! Needless to say we are canceling our American Express Delta credit card and we will no longer accept American Express at our business! Everyone I know will hear my story and I am very interested in a class action suit against American Express!
I am along with you Lisa F. Just got an form email over the weekend using the same wording and that my spending limit has been reduced. Oh, and a letter is being sent with a full explanation of how they came to this decision. The irony is we have two AMEX cards, gold and blue, the gold limit was reduced only. The blue they left alone. What is this all about. Maybe next weekend I will get another email for the blue card.
Class action law suit sounds appropriated here. We need to get more people on board and I know they are out there.
As soon as I paid off $3000, they reduced my credit limit from 4600 to 1800. This is bad.
I am in for a possible lawsuit.
Iv’e been an amx card user for many years never missed a payment and did not abuse my credit limit, which was $20,000. I was notified by email my limit was lowered to $5800. $200 over my balance. No logical reason given. Beyond the obvious we should all be aware that this causes other potential lenders to think that we have max’d out the card, thereby lowering our credit score. If ever there was a case for a class action this is it.
AMEX hit me too. They referred to “serious delinquency”. I have never had a delinquent payment and Experian confirm this. Experian advised me to look for a class action lawsuit against AMEX for fabricating credit report information. I hope Costco drops AMEX as the payment card.
I have 3 cards with Amex. I pay twice a month on one of them, the one with a balance. I pay the other two in full. Because there is a balance on my “no limit” business card, I now have a limit, increased my minimum to that equal to the rent of my store and will not let me use my personal card. Harassing
phone calls at my business. I have an excellent credit score, have been a member since 1985 and have never been delinquent. Now, I find out they have canceled all three cards! Yes, I am certainly in for a class action lawsuit! I used Costco all the time for my business and used my Amex card for the purchases. No more.
i have freen and gold cards . one for my wife as well in both green and gold. i had these acccount for over 20 years. never missed any payment. now they cancell my cards,
OK maybe my creidt is not great ringt not but it seems they cancell right after i paid my membership fees.now since i won’t be a menber for the rest of the year how about sending me my membership fees back for me and my wife for both accounts or aleast a prorated amount. but they say they don’t refund membership if they cancell your cards, sounds like a scam to me , please let sue them.
I have and use, blue, optima, gold, plat….Have always paid on time for the past 30 years. Never late, nothing…Never asked for a credit line increase always given and initatied by AMEX….
Limits now are cut down to nothing……..Big impact on excellent credit report…..I have sent 8 letters to AMEX asking for a detailed explanation, never given one, nor my inquiry answered……..
Class action will teach them a lesson !
My name is Jason and it does make me feel good that there are others who are not afraid to speak up when something as what Amex is doing to its customers is completely wrong.
My letter actually did get answered from Amex and what they told me after I sent 2000 of them out to the billing location on my bill was to “Cease and Desist!” What I then told them was another thing which I am not going to say. Anyway, I sent another 2000 of them out and Amex then said they were going to have the authorities talk with me which I then said again something they did not like. And every other week they still get a new letter from me that they try and threaten me not to keep sending. However, what I say is true and from what I was told my letters have rised huge employee concerns about the real truth at hand. Too much money as been given out and it will never be able to be paid back. For why are they not decreasing our government’s credit lines of where its debt is now over $4 trillion!! And they are worried about our small individual debt!! HA! When Amex is reducing the credit lines of the good people of this country still responsible to pay their bills you know things are very very bad! Institutional fear is growing at a fast pace and when the institutions push people enough they are going to get a huge rude awaking to the power that we the people have!! Let’s not lose focus on the principles of what this country was founded on “Freedom” and more and more is being taken away from all of us credit lines just being a small example compared to everything else that has already been taken away. I will let you fill in the blanks of what has been taken away from you already.
Class Action Law Suite against this corporate disgrace of a company is the start to many other things ahead that we the people of this country need to do address instead of just allowing it to be as most will say, “Well THAT IS JUST THE WAY IT IS!!” Well I say, NO WE ALL CAN CHANGE IT IF WE TRULLY WANT TO!!!
Keep me posted on how everyone wants to proceed!!
Amex cut off my credit limit too, without notice. Then they sent mail after 1 week. My limit was $10k, and now it is $2500, of course with no proper reason. I never paid late, kept good credit score, spent more than $20K a year with this blue card for last 3 years, then suddenly AMEX did something horrible, so now I’m stop using amex blue, and will close this account unless they restore my credit limit back to $10K. I’m definately in for this action. Please update!
Same happened to me, my line was taken from 14000 down to 3600. HOWEVER, remember that the limits that we are being given appear in the balance sheet of the provider as a liability and according to the regulations they need to keep a reserve as a % of that. Even though my card’s limit was reduced to 3600, they did so because the maximum balance I ever had on the card was 1200. So, they doubled the average balance for the last year. Since I never went over that average balance it is assumed that I will do ok with double that… I guess the idea is that they need to “clean” their books and the people need to regain the credits overtime by showing the same good payment history. It really sucks, but I think that it was coming. They need to push back the spending to protect their company. I feel sad that my limit and potential purchase power was suddenly drastically reduced, but I am willing to work on gaining it back. Unfortunately, I am not sure about the success of an action suit. I believe that in the “small print” AMEX has the right to change the credit limit at any time… But, then again, who reads those??
My experiences echo all of yours. I have been embarrased in front of clients becoz of the Amex card getting declined without any notice, after reducing my credit line from $25,000 to $1,300. I have had my card for 20+ years with excellent credit and have never been late with a payment. I would be very interested in a class action suit. For reason everyone is aware of i.e. the economy, the only way this can go forward, if it is a class action. We all will need to contribute for the attorneys fees involved. I am very certain that just as i feel about how i have been treated by Amex after i played by their rules, so are many others like the blogs here. Lets pool our resources and hopefully achieve some thing construtive for all by taking on Amex.
Laila
AMEX has been randomly attacking my credit as well, dropping my line, doing it again and then again over the course of a couple months. I have been a customer for 22 years with a perfect payment history, zero balance (they auto debit in full each month from my account) and no other account credit balances. This first occurred on my BofA sponsored AMEX, which I recall the line was cut in half and now this is occurring on my optima card where I have been cut from $24K to $6.7K to $2.8K, all without prior notice. Then, when auto payments or general charges begin to bounce and I call AMEX, they inform of the change and the letter and e-mail arrive a day or two later. I challenge it. They refuse then send a ‘reason’ letter with blanks for the credit reporting agency they allegedly use as well as untruths, which I am easily able to verify as untrue. Crazy.
I have just cancelled my three platinum cards because of abuses similar to the ones posted. I would like to join a class action lawsuit.
I just received an email from AMEX today, June 17, 2009. The message was ” Your revised credit limit for purchases is now $3,800.
The new cash advance limit is $200.00″ AMEX reduced my CREDIT LINE FROM $19,400.00 to my current balance of $3,800. leaving me no available credit. I am still trying to figure out why a reduction? when I never miss any payment I know I have a fixed rate of 5.99%. I do not know how my credit will be affected by this reduction.
Hi Lourdes,
Your credit score will go down in the next month or two. Just depends on how much other credit available you have on your other cards. I believe FICO says credit ratios only account for 15% of the overall score.
Thanks for commenting. Cheers!
THANK YOU! for taking your time to respond I just want to say I appreciate it!!
I am not alone…
I thought being honest, working hard, being humble and doing the right thing is a way to go..
I will continue to do so..
Please email me if for any reason you need support I am here, again my gratitude…. THANK YOU!!!
I would be interested in a lawsuit as well. I’ve been a member in good standing since 1995. My credit score has been outstandig and never missed a payment to any lender ever in my life. I was embarrassed in my dentist’s office today when the charge on my no pre-set limit gold card was denied. This was quickly resolved in the offic after much embarrassment. When I came home I called them up and got an uneducated “supervisor” on the other end.
I am still in shock. Let’s do something.
Same situation for me. Amex the worst credit card out there at reducing lines on my blue card from $30k to $20k (my balance was $19k) and when I made a $3k payment they reduced it again to $16k. They just recently called and asked if I would be able to make a $10k payment, they would give me 4 months financing back and reduce limit to $9k and lock it in.
Same here! Class Action Against American Express? Let me know! I was contacted by Amex telling me that I can not buy from my vendor because it voided my Amex terms. They wanted six months bank statements. They were very nice until at the end of the call she said that all my four cards are on hold. This makes all my other vendors asking why my card was declined. Embarrassing! I run $15 to $20k a month per card and after 14 years, high 700’s credit, NEVER a late payment! They reduced my credit by 75%!
The challenge that I have is that they say there is never a pre-set spending limit, BUT THERE IS! This is wrong! If airlines said no Black Out dates and there was . . . . that would be misleading or false advertising!
They are wrong and losing the customers that build their company. It looks I am deciding to stop Amex Cards from being accepted at my company too!
Same story as most of the above, certainly take part in any class action.
Dateline or 60 Minutes should be contacted to confront them head on. It may not do anything about what they’ve already done, but it may prompt potential consumers to not apply for their cards.
I also agree that merchants should stop accepting their card. Their fees are too high anyway!
COUNT ME IN ON THE LAW SUIT!
I’ve been at war with American Express for the last 2 years! First, they handed out 4 cards to the same person that applied over the phone claiming to be me. Since no one checked any IDs, they let my identity be stolen.
I never had to pay for the damages but the way they have been hurting my credit is unforgivable. On top of being irresponsible they have dropped my credit limit 5 times over the last 2 years.
I have had lawyers send them letters warning that I will sue if they don’t fix what they’ve done to my credit but nothing has happened so far. I think they couldn’t care less, but if we act as a group…
The last letter came this weekend it reduced my limit to $1,200 … It started at $10K. My maximum balance was around $3,000.
It feels so unfair that they can do this without consequences….
If you know anything about this or ho to help me/us get them, please contact me at DeepDreamDiver@yahoo.com
Aloha,
Daniela
Hello guys, I thought I was the only one, but the excuse I got from American Express for lowering my credit limit two days after I paid the whole thing off just seemed a little suspect. I’ve only been with Amex for 2 years with a $4200 limit which was reduced to $1000, and I only found this out when my card was declined while booking a vacation. I called customer service and they were putting their intensive talking point training to expert use. I felt like I was talking to one of those automated phone systems you get when you call their 800 number. No one seemed to have a brain of their own, of course not, they don’t want to end up on the street which is exactly where I would be had I gone on vacation with only my Amex card. Anyway, their excuse was the totally bogus “you have too much debt to income ratio bullcrap” I have no debt… zero, no balance on any credit cards, no mortgage, no carpayment, no student loans, I’ve just been watching my ass like every other red blooded American out there in these dire financial times. I will never use an Amex card again and will tell every soul I know to avoid them at all cost. I am interested in being part of the class action lawsuit, please contact me at lintonsmall@gmail.com
TARP recipient AMEX, yup, that’s right folks, AMEX was a TARP recipient. In fact, AMEX (with the expeditious blessings from the Federal Reserve) became a bank in order to qualify for TARP funding. Why? Because without TARP funding, AMEX would be out of business. That’s right folks. BK and out of business. Here’s the kicker, banks (AMEX) that got TARP funding were to use those funds to EXTEND credit to their customers (you know, to stimulate the economy), not to reduce credit.
I don’t know about anybody else out there, but this action by AMEX has had a seriously negative impact on my credit profile. How? Here’s how: since AMEX reduced my credit limits, I am now considered a major credit risk due to my high loan balances. Shortly after AMEX reduced my credit limits, another credit card company reduced my credit limit to my outstanding balance (!); not too long after that, another creditor CLOSED my account entirely (I still have a loan balance which I’m paying). Do you have any idea what that does to someone’s credit score? And BTW, I do not and never have abused any of my credit cards PLUS I always pay my bills on time, all the time.
Look, I don’t want to become a bore here and go on and on but I am way-passed-pissed for the way (too many ways here) AMEX has treated me (and you) and as far as I’m concerned (oh oh, here it comes) AMEX needs to be held accountable for THEIR financial shenanigan’s and be compelled to pay BIG TIME, sort of an AMEX TARP for us abused customers. A class action suit is right in order. Let’s put our collective minds together to make this happen NOW while the iron is hot.
Is this talk or action?? I think we can sue them for damaging our credit reports and our credit scores.
When AMEX increases/decreases our credit limit without our approval …well my real question is does our credit get dinged negatively when they decrease our credit line? They cut my credit line from $10,000 to $7,600 and I don’t care about that, when I started at $3,000, then they increased it to $6,000 and then $10,000. What I am pissed about is that they increased my AMEX Blue APR from 14% to 18%. I currently have a $6,900 balance on it and it’s caused my minimum payment to go up. I’m so tired of these banks sticking it to the customers making it more difficult to pay our bills down. Count me in people.
Nick, the answer to your question/situation is yes, your credit got dinged.
Donna’s right, enough talk, I’m going to make some calls and do a bit of research, I suggest you do the same. Let’s compare notes and take action.
I had a Jet Blue account that I paid a yearly fee for, but could never enjoy the benefits of the free plane tickets, because everytime I paid my account off American express would lower my rate mind you I was never late and always paid more than the min my account went from $2240.00 to $1800 -$1100-$500 -$300 then to $150.I fought daily with them sent in credit reports fica scores with no change in my limit, so I finally closed my account I wasnt going to keep a card where my yearly fee wasnt much more than my credit limit. After I closed my account American Express had the never to write me and tell me that they had cancelled my account, again after I totally paid my account in full. How can they cancel a closed account?? When I asked them why they kept lowering my limit they stated they had done a review and I didnt meet review standards, but its funny how they seemed to do reviews after I paid my account in full.
Bring on the Class action Lawsuit. I am waiting to sink my fangs into them…Grrrrrrrrrrrrrr. I need to first sue them for all they have, then never use any card from them ever.Bring it on.
I have had American Express for years. I charge on average 20-50k a month. One month American Express called me and told me that my account was “under review” and that they were going to cut off my charging privileges if I did not provide them with financial information on my company. We finally agreed to give them some information. After a week they cut my line in half and cut my limit on my Plum Card (that GREAT SMALL Business card) to $1400.00. I canceled it. I have called numerous times to talk about a credit line increase. I get told every time that when my business has over 1 million dollars in business that they will look at reviewing my account again. American Express continually runs ads trying to show that they are a friend of small business. They are far from it. They are trying to choke out small business. It is very hard to grow a company when people like American Express won’t let you. Sign me up and add False Advertising to the Class Action Suit. A final thought – small business relies on cash flow. When we have to make multiple payments or prepay American Express what is the point of having the card?
American Express executives will be handing out bonuses with federal stimulus money they received. They do not have any reason to support small business when they can legally take federal dollars. We need the most aggressive large law firm to go after them and get a jury trial. By cutting the credit lines they lower our FICO scores and they are able to charge more money for doing less. It is an incredibly smoothe extortion racket. Our credit score dropped 80 points making every single piece of credit 20-45% more expensive. Vote with your vote and vote with your spending. Tell your kids they are NOT allowed to shop at any store that accepts American Express. Don’t shop at COSTCO (when you can.) Let every retailer that you won’t do business with them if they accept American Express. We now are experiencing a Class Society like the rest of the world.
Count me in on any class action lawsuit.
About 2 years ago I opened an account with AMEX for a low APR balance transfer. About 6 months later Wells Fargo decreased a LOC of mine because of my “increased extended credit.” Four months ago, Wells Fargo reduced my credit card line from $20k to $1k. Less than I had as a student working part time making $10/hr.
Fast forward to today. I just paid off my BofA card, over $15k on a $19k balance card. BofA has now CLOSED my card entirely because of the balances on my Wells line compared to credit limit – WHICH WAS AXED because of BofA’s line! This is a disgusting race to the bottom and destroying my credit at the same time. Just as a disclaimer – I currently have a 710 FICO and 0 missed or late loan or revolving credit payments. I am so sick that I don’t even know where to go.
I want my card open, only to improve my credit score. No bank or credit card will ever make a dime from me again, I have learned my lesson the hard way. My former employer, recipient of TARP funds, laid me off. Through all that I still paid DOWN my debt. Now I am employed again, and my two lenders, recipients of TARP funds (my tax dollars) have screwed me.
OK FOR NOW Amex. has stopped cutting our credit limits and the new game they are playing @ our expense is an increase on the persentage rate per month it does not matter that I paid more than the Min. Ea. Mo. it does not matter that I paid on time ea. Mo. AND as we all know They don’t care I hope that a class action lawsuit comes onto play real soon WE Cant Keep Taking a Beating At These rediculous Rates….Here is the other clincher We Live In the State of Massachusetts OUCH 10 times over They don’t call us TAX-A-Chusetts for nothing BUT thats a different battle for an other day!!! Please send me something that can shed some light on this Realy fed up with this BS…Thanks Louise
I’ve been speaking with Jack Sanford, Paralegal, at
Lieff Cabraser Heimann & Bernstein, LLP
275 Battery Street, 30th Floor
San Francisco, CA 94111
jsanford@lchb.com
Phone: (415) 956-1000 x2238 // Fax: (415) 956-1008 http://www.lchb.com, (log on to their site and chech them out)for the plaintiffs since 1972. He asked me to email him a copy of my AMEX agreement, which I do not have but have requested from AMEX. If any of you have a copy available now, send it to him asap for attorney to review and analyze. No more talk, let’s roll on this. But stay in touch!
I would participate in a class action lawsuit against American express. I also have 4 other people where all their cards were canceled. American Express has been really mean with their tactics. We have paid our bills on time and got screwed by low credit limits and request of our tax returns. I am currently searching for a lawyer, but I would participate. In addition, my husband was an authorized user, but Amex got his social and placed the reporting on his credit report. Somewhere there has to be a law in what they have done. We need help. We can’t wait for the help Obama is going do.
Read my previous comment. These attorneys are class action attorney’s and we should give these guys a try.
For me, it’s the new variable rate hike. I had a fixed rate @ 6.99%.
Amex is now posting their new rate @ 11.99% plus prime = 17.24% not only on future purchases, but the existing balances as well.
Then having Amex refuse to let you ‘opt out’ and close your account with them before their new rate is imposed.
I would like to be part of a class action suit against these guys. Send me any details, please.
Okay. We’re mad as hell and we’re not gonna take it anymore. Let’s get together and show these sorry TARP recipient SOB’s we mean business. After doing just a bit of research, I found, talked to, and posted on this site the contact information of a class action law firm based in SF. Call them first thing Monday and let’s get this thing rolling.
Hey now, Melanie’s on to something. Everybody, contact 60 Minutes and request that they dedicate the entire hour exposing how these sorry TARP recipient SOB’s exploit their customers.
A sudden reduction in credit line without justification. A change in terms again without justification. Denial of credit authorizations while yet under the credit limit. No ability to opt out and close the account saving at least the former APR.
Each of these items has happend to me during the past year or so. An intelligent even tempered attempt to remedy each situation has always proven fruitless.
I transfered some debt several years ago to a fixed APR of 3.99, which was to last until the balance was paid off or seven years. two years ago, about two years into the balance transfer program Am Ex solicited to me, my APR was raised to 7.99. Last year it was again raised to 10.24 adjustable…. 3 mo later it was raised to 15.20 adjustable. At no time did I default in any way on the account. I have been late once with payment in five or six years of using Am Ex, and that was due to their website glitch.
Changing the credit product was my only option to reduce the near 16% to the just over 11 % rate now.
Am Ex either will not or can not provide me the original contract regarding the aforementioned balance transfer containing the time frames and so forth.
3 years ago having amasssed thousands of rewards points over some period, I asked to redeem them and said they had been lapsed.
businesses especially those whose product is to lend money simply have to be more forthwright and above board in their dealings with their clients. I find it odd too that in advance of the recently passed lending law forbidding such actions that am Ex is in fact doing such things to it’s client base, en masse… the action is reprehensible at least and borders on loan shrking techniques
Given the ties to Chase, and the fed issuing bail out moneies there, the management from Am Ex & AIG must be hand in glove with one another. Disgraceful. They should be treated as the outlaws they are… Chase, Am Ex & AIG. They knew it was wrong and did it anyway…. trapping millions with threadbare, vaccuous promises of assistance. All the while knowing the bulk of their business was at risk.
these practices are tantamount to usery for those so engulfed without the ability to escape their own debt load. Am Ex knows this all too well.
I have been a AMEX member since 1992, and always pay off my cards on time. I had four cards, but this year AMEX closed one of my accounts because I didn’t use it, in April they lowered my credit on my Costco card to nothing, and yesterday they lowered my my last two cards, a Clear and a Delta Card, to about 5-20% their original limits. I pay my cards early, and am never late. AMEX said they lowered my limits due to a credit check by all three bureaus. I just paid $24 USD for all three credit reports, and none have been checked by AMEX. In fact, in the past two years, the only banks that has checked my credit bureaus is Nordstrom and Citibank. I am all in for a class action. Please let me know where to send the check!
I’ve had my amex card since 2000, always paid on time and annually pay it down quite a bit. Spring of 2008 I paid it down by 3k once I did that my limit was reduced by that amount. I then get notices from my Chase accounts (2)stating because of my excess credit and balances my interest rate will be increased to 29%. I’ve tried working with all my creditors in reducing my interest rate but they won’t budge. The tell me the rate that I currently have is the best rate out there. Which I find highly untrue. I am now barely making ends meet but still pay my cards on time. Where’s the fair treatment for those that pay on time, don’t miss a payment, and has been a faithful customer. I’m certainly in for a class action.
Has anyone had the experience of having his or her interest rate increased on the Amex Optima card as a consequence of early payment?
Please concact me. jamesfhargrove at gmail
I am seeking an attorney to sue American Express. Even though I have always paid on time, I was harrassed into paying $1500, ahead of time, on Aug. 15, 09. After Sept payment, AE demanded another $1500. This fraudulent co. has harrassed, embarrassed, humiliated, blackmailed my husband and I. My husband nearly had a fist fight at Costco when our card was declined, for no reason. The man in the back called him filthy names. A party at Costco restrained him. All this was due to the harrassment of AE stopping credit on the card, when it was not late and always paid on time. We did not know when our card would not be accepted for gasoline, food, pharmaceuticals (essential needs). Please have a consumer fraud attorney contact me at once. Aside from this, the AE statement is confusing and unreadable.One never knows what one owes.Last month, AE charged more than my purchases and interest owed.One would need an economics professor to read and understand their statement. Each month, my balance gets higher, instead of lower, even though I have paid my bill. I hate this co. and Mr. Warren Buffett who owns most of the shares in AE. He should go down into the books as “Mr. Scrooge” who took federal money to make AE into a bank and then have AE bank stab the taxpayers in the back.
IM IN They just cancelled my card because of my credit history. Ive been late twice in the last 5 yrs.and i just paid the whole balance off. I had worse credit when they gave me the card.please contact me im in for the lawsuit.
sorry last post my email is marvingarcia80@yahoo.com
I’m in. They sent me an email…..”Due to economic conditions and review…etc ” They just reduced my limit from 9,000 to 4600 in the end of my transaction period. I was already close since I had bought a new tv and paid for some plumbing work. This has made me go over the limit, and now I’ll have to deal with their fees. Doesn’t seem right that they can do that. I had paid off every month double the minimum due. Average balance around $2k for a 9500 credit limit didn’t seem bad. I had planned on paying the TV off this month. Very dissappointed.
Folks, I am as well encountering the same issue. They cut my available credit almost right to the amount I owed, which makes it look like I maxed it. Obviously injuring my credit rating which was very good. I can’t even get another card to pay off the balance. So with that said who is picking up the cause for the class action lawsuit? Also anyone contacted some sort of government official to complain given the US Government just issued them a bailout?
I can contact a lawyer here in NH…but wondering if I am duplicating efforts if someone is already on this.
Thoughts and thanks.
Also a follow up. I would you encourage you to reach out to the law firm that successfully filed and won a class action lawsuit against AMEX for others complaints. I have…
http://www.zimmreed.com/pr/2007-0720.html
Hello, much like many people I have been reading about here and on other sites concerning AE, I have a high credit score and little credit card debt. I have an Amex Blue card I rarely use with no balance worth $12,500 in credit. I decided to use it last week to temporarily finance a home improvement project. Charged (+/-)$3,200. Found out later, the hard way, (as my card was declined at Home Depot) that my limit had been dropped to $3,000 leaving me about $200 “over.” Later I received the same email Susan refers to in her post. I am totally in support of any class action suit this group is willing to put resources toward. I have a business partner who is also interested.
Ok folks this has to end! American Express has defamed the charactor of everyone I have read about in this post, if you look at the laws, what AE has done to each and everyone of us has left a black mark in our credit files for NO REASON if this is not a clear case for “Defamation of Charactor” then I don’t know what is. This is unjust and definately falls under the “Unfair business Practices” If for any reason that you are denied credit or your credit score drops because of this then you have a case for slander, remember you cannot say things that are not true and because so many of the creditors these days are doing regular checkups on our credit files this will show and we all know that closing or having an account closed leaves a bad mark on our credit report thus causing harm to each and everyone of us. If the cost for a class action suit is $10k I’m certain that there must be at least 10,000 people who have suffered because of what AE has done that means that it’s $1.00 per person to sue these people. If someone could provide a legit law firm I am in for the suit.
best regards to all!
Has this attorney yet looked further into the probability of this case. I would be willing join in.
count me in on the law suit. 4 amex cards, Platium,2golds and a platium optima. 1 left the Optima which they now started the process of there games to close it.
I am so in for the lawsuit. I have actually contacted my personal atty for this. I also started off with a 10,000 credit limit then it got lowered to $5,000 just recently it got lowered to $1,500…I only owe them $300. IDK, but I am in for the lawsuit!!
AX raised my credit limit to 37k many years ago. I wanted to lower it but found that it was good for my credit score to have a high limit card with a low balance. i’ve paid on time consistently for years. Without warning they lowered the available balance to less then the balance owed. Reduced it by over 33K – after attempting to use the card and being denied I called and was told the balance had been lowered and i had been notified… i finally received a letter from them notifying me 2 weeks after they had lowered the balance. The ripple affect from their action is destroying my credit score. And they don’t care.
I have a very similar story and am eager to take this to a judge given our collective problem with Amex. They have effectively ruined/hampered our credit by slashing our Lines of credit threby making our utilization look absurdly high which in turn, negatively affects credit scores making it even harder to replace our cards, get new loans for a car or home, etc. I feel that I am less able to take advantage of the housing market, the tax incentive for new home buyers, and the current all time low interest rates as a result.
After being a cardmember since 97, with impeccable payment history and credit scores in the high 700’s and a total line of $90,000, my LOC was reduced overnight to $4500! Further, they sent me a letter stating it was due to new issues on my credit report (and there were none) and because I shop in stores where people do not pay their bills! Have you heard of something so preposterous? This is actually meant to be protected by the House Bill 1292: Consumer Protection – Blacklist Prevention.
Blacklisting is a discriminatory data-mining practice in which card companies decrease a customer’s line of credit because they decide that the establishments where customers are shopping with their card don’t meet standards of acceptability. What I still don’t understand is that I am a New Yorker, shop at Bloomingdales and go out for dinners sometimes. I feel so insulted and utterly baffled that they would cite that as one of many reasons for reducing my credit line. After having complained for a year to Amex, I have gotten nowhere. As a result, I have lost Delta Platinum status for flying and no longer support Delta as an airline though it was my first choice.That is only one of the ramifications of course, but I feel that we all have very valid concerns.
So, how do we make this happen? Count me in.
Count me in when the ball starts rolling. I am madder than hell. They have caused me irreparable harm and stress including a significant monetary loss. They started an avalanche in my life that will take many years to overcome. I have had perfect credit since 1976 and still do.
Same story for me, credit limit 19,500 balance 8500. suddenly credit limit reduced to 8600. And they made it seem like they did me a favor covering the charge of 1700 for a trip I was planning and happened to be charging while they were reducing my balance. I pay more than the minimum by a couple hundred and sometimes send $800. depending on what I charge. I use this card for trips and hotels travel rentals ect.. mostly for the insurance they offer so sometimes pay as soon as the charge appears and carry a balance for other stuff. So now I look like I have less than 200 available. I would be interested in suing they had no explaination except that my credit to debt ratio, makes no sense as my debt is in half. Asked me if I wanted to apply for a higher limit! I had a higher limit….
They hosed me big time, dropping lines over $100k total. 780+ FICO and member for over 10 years, never once paid late. I’m in.
I feel your pain. Same thing has happened to me. I have a American Express (Open for Business) credit Card. My credit limit was $15,000 they have reduced my credit line to $8,800 only $256 dollars above my balance, I am sure if will go down from there. I have always paid early and above my monthly minimum. Of course I call them up and give them a blessing out, but it fell on deaf ears. They don’t give a damn that it looks as if I don’t know how to manage my money, when I go to apply for other things and my credit rateing is reduced. Take a couple thousand off….who cares but only leave me with $256.00 above my balance that is a hard slap in the face.Then send me a letter hopeing we can do future business together. I am done with American Express and as far as that goes they are not getting any business from my merchant terminal either! What do they expect we are all just going to forgive them and keep doing business with then? I am tired of people in big offices in their comfort zone that can’t go out and start a business for themselves and realize how hard it is, and they just sit there and deside what I am worth! When I have been nothing but faitful.
Im not to happy with AE at all they also reduced my available credit from 10,700 down to 9,100.58. $251 more than what I owe. I have never been late and have paid my bills on time. I would be willing to be in on this class action lawsuit, also.
Thank you AMEX for the hard lesson learned. It seems being a responsible borrower doesn’t pay off anymore. While never getting close to my credit limit of $30k, you decided to cut that in halve and so now my credit looks like I have exceeded my limit. Not good to the old credit score, you know? And then you take your actions against me to reason why you need to close my account. All the while never having a late fee or over limit fee. Thank you. I look forward to your day in court and having to see the faces and lives that you have so selfishly disrespected.
Someone give me a time and place for court & I will be there!
I am in the same situation as all of you. Amex continued to drop my available credit until they finally, WITHOUT NOTICE, canceled my account – the same day I made a payment to pay off more then half my balance. I have no missed payments, and have always paid more then my monthly payment. I am a small business owner and plan to stop accepting Amex in my store. I will join this class action suit.
My husband is in the same boat as all of you. I lost my high paying job in 2007. He has an AMEX Blue that had a credit limit of $50K and a low APR of 5.99%. We used this card for financing larger purchases as opposed to paying higher interest rates elsewhere. Payments were always made on time even after I lost my job although it was tough. Suddenly last year our credit line was reduced to $35K just a bit more than we owed and our interest rate went up to 9.99%. We could not afford the new payment. We talked to them and asked about dropping the interest rate back down so that we could continue to make the payments on time and we were refused. As soon as the first higher payment was late they raised our interest rate to 19.99% so we just gave up trying. He is now getting letters from local attorneys stating AMEX filed a civil lawsuit against him for the $35K and offers to represent him. I cashed in my 401K to pay off Platinum and most of my Gold card. I now owe the IRS $6000 in taxes because of the early withdrawal penalty. We told them we could not settle this debt until after the IRS is paid off. So their answer was to file a lawsuit against my husband to seek a judgment. So there you go. I have no retirement now except social security and we can’t afford an attorney to fight the lawsuit. Count me in if you can find an attorney to take the case.
I have had my account with AX for over 7 years. About a year ago they decided to give me a preset spending limit. With no notice and no just cause. Said it was due to economic times.
Then last week charges were being declined. I called AX and I had over $2,700.00 available to use. I told the rep that charges were still being declined and she tried to get me to pay my balance to zero, even though the bill wasn’t due for another 3 weeks, my balance was $275.00. Come to find out after 40 minutes on hold…They said that they can now choose what to pay and who. That they will decline any charges they see fit even if you are in good standing with AX. Needless to say 1 week later I get a letter stating they are closing my account and that I may get a negative report on my credit. How ever the bill of $275.00 isn’t due until Dec 2. They closed my account letter dated on Nov 20 and received Nov. 27. They have perposely gave me a negative report when they closed my account even before the bill was due. Such a cheap move.
However, had I been contacted stating that they were closing my account on _(date)__ and that I need to pay them _(the balance)__ by ___(date)__. Then I would have done so.
So thanks American Express for allowing me to have a card for 7 years. I paid my bill timely and was in good standings. However, AX you gave me a bad credit report even though the bill wasn’t even due yet. So thanks for allowing me to be a loyal payer and you (AX) for nothing but a bad credit report!! What a rip off!!
I will eagerly join in a class action lawsuit against American Express!!!! I had an account w/ them approx 10yrs w/ an authorized user on my account. My credit limit was 10k. This account had ABSOLUTELY NO ACTIVITY for over a year and a half. The authorized user stole and started using MY card. She also changed all the information via the internet as to where to send statements. I have done A TON of research and the law CLEARLY states that w/ ANY change of information- they have to mail,call, and e-mail to make sure the info change was indeed yours to protect the consumer from identity theft. They did NONE of those. Also I had EXCELLENT credit and never carried a balance on ANY of my credit cards for more than a couple hundred dollars. When my balance started going up and up (UNUSUAL ACTIVITY) you would think they would investigate, instead the steadily INCREASED my credit limit to take advantage of the ridiculous amount of charges ($40,000). I have filed fraud charges against the authorized user and disputed the charges but they insist I pay them $50,000 now. I am truly a victim of ID theft which could have been prevented if they followed THEIR laws.I am completely disgusted and want to see them be treated the way they treat us!!!
This just happened to me today as well. Same situation…high credit score, no delinquencies, no negatives…and nowhere near my AMEX limit. They lowered my credit to within $200 of my current balance. No movement when I called. I immediately cancelled the card (after 11 years!). Count me in on a class action lawsuit!
I will also be joining the class action suit- I pay them and they turn my debt ratio upside down…this is the thanks i get for being a loyal customer and paying on time- a big slap in the face. Thinking about cancelling my card as well-hmph!
READY TO SUE!!!! I am looking for a class action suit against AX!! They lowered my limit from 10,000.00 to 2,500.00 with NO warning and after I paid 7,000.00 on it to lower the balance! A full week later I received a letter telling me that they were lowering it! I am HOT!! I have always been an excellent customer and paid on time, and this action was uncalled for and HURTS my credit score. Why are they granted bailout money and then allowed to screw the American people like this???? Bank of America and Delta AX have both done this to me!!
I am extremeley upset. I made more than $20,000 in payments in three months to bring my balance down to about $2,000. They DROPPED my credit limit from $19,000 to $2,000. Had card for 8 years, never been late on a payment. Customer Loyalty means nothing to AMEX. I used to use the card proudly, now I want nothing to do with them. And on top of that, their rewards program is completely misleading. NONE of my grocery purchases at Super Walmart made the 5% for the year.
Same deal, I have been a member for 15 years, no late payments at all. Credit was reduces dramaticaly for no reason. They tried to raise my intersst rate by 15%, I basically told them t lower it back to the original rate or they would NEVER see the balance.
I got a letter from them stating that they lowered my interest rate to only 2.5 points above where it was. Better than nothing. These people need to be sued bad. I am in.
This just happened to me as well. I have had a gold card since 1999. I have never been late and have paid them accordingly. All of a sudden I had a heavy spending month a couple of years ago and I received a call to convert that amount into a flex pay, which I did. However, the caveat to this was that now my “no pre-spending limit” was now reduced to 21,900, 200 bucks above the converted amount. I paid it down significantly and it continued as such. This past week I had a minimum payment of 4436.00. I paid it with no problem. Shortly after I’m heading into a shoe store to buy the obvious and as I’m going to pay I receive an email stating that my credit limit was reduced to the amount paid down and much to my surprise I only had 80 bucks left of available credit. Thankfully I did not have them swipe the card as it would have been declined, cause the shoes were 495.00. Contact me via email as I too am looking to move on the class action suit. Respectfully, Felix Cortez
I’m in as well.
-William
wjkaszycki@verizon.net
Hello, I have had amex blue and gold for 3 years. I used the card to buy and sell online. The economy and recession caused my misfortunes, and I fell into debt. I was 90 days late and I contacted them to discuss a possible repayment plan. They wanted the minimum due before I could participate in the program which would not charge late fees or raise the interst rate for a year. In order to get into the program, they wanted a post dated check. I knew the funds were unavailable so I decided not to make the matters worse. Moreover, I was enrolled in their famous Account Protector Program which I paid $85 dollars every month for the Protection in case I could not pay the monthly fee if some unfortunate event occured, such as unemployment or loss of spouse. Long story short, the terms of the Account Protector Program clearly states that they will give 30 days advance written notice before they cancel you from the program. I was sent a letter On October 17, 2009, that my cards were cancelled and I was in default. On Nov 2, Amex Account Protector Program sends a letter that the program is cancelled due to credit card status. Nov 2, Another letter arrives naming collection lawyers who I must contact to pay in full or send inquiries. Nov 2, 2009, I receive my invoice where I am still billed for the Account Protection Program. My math is not ok when trying to budget my finances, but I guess I can subtract Oct 17, 2009 through Nov 2 2009. I figure 16 days. Do you agree? Never did I receive, “YOU will be given at least 30 days advance written notice of cancellation by Amex” like their contract promised. Oh, by the way, my Father passed away September 8, 2009 and I was still in mourning and I paid his funeral arrangements. So that minimum payment due, that’s where it went. But Amex didn’t care. So during those 107 days being late, I was trying to secure a loan to bring everything current. Boy, that letter which promised 30 days advance written notice sure would have have triggered a ringing alarm bell- that my time was about to expire and they were ready to default and cancel me out completely. I guess thats why I signed up for this service in the first place. I also wondered what would have happened if I would have died on October 31, 2009. The Account Protector Program offers to pay up to $10,000 in case the creditor loses his/her life or death. Makes me wonder if I was still covered since they still billed me on Nov 2, 2009. It doesn’t take a genius to know that something is not right. perhaps a breach of contract by Amex? Anyone think that I am just reaching or should I just pay them the money? In 2008, within 3 months, I paid them $10,000 and my limit is $11,800. I am not rich, I just fell on hard times. I have to answer a summons in court within 30 days now. Any advice
Hi Jose,
I am not sure if your protector is immediately cancelled when you are in default on you credit card. I am guessing it is not cancelled until payment to them (a separate company) is not paid which might explain why they cancelled when they did, due to Amex declining all charges at that point.
I looked up the terms of agreement:
My guess is if the event is qualified and happened before the cancellation of your account protector policy then you are still able to make the claim. The challenge is proving your event/situation qualifies.
What I would do if I were in your situation is call the attorney representing Amex and tell them succinctly that you dispute the balance because you believe it was covered under the account protector plan. Advise the attorney you will send and fax the documentation proving this. Also, advise that after an investigation that if you are not entitled to the claim that you would like to work something out on a voluntary basis.
If you do not get an adequate response or are just ignored, be sure to show up to court and make your claim with documentation to the judge. If you do not attend, they will get a default judgment.
Good luck!
Hello – I have been with Amex blue card for 10 years. My limit was 25K I used the card, paid it off and used it again, always paying on time. Last year I got a letter stating they will be lowering my credit limit because of economic times. They ruined my credit score and dropped my limit down to 8K. I had a balance that I transfered on the card prior to them dropping the limit at a FIXED rate of 3.99 for lifetime payoff, and have been paying ontime for about a year now. Dont even use the card anymore. This month I got a letter saying they are raising my rate to 15%. I have all documentation of the transfer of fixed rate of 3.99 and have been faxing this documentation to them for 2wks now.. They keep telling me story about how its not a lifetime rate and it was promotional. I am so fed up with Amex I am at loss..I am still fighting them I have the documenation of the transfer.. Im going to try and get my rate lowered. Im just furious with this entire situation.
I signed up for credit protection plus for my Amex card. I recently became unemployed. After sending in my documentation, I was told I was not eligible for the benefits I paid good money for, claiming that my ineligibility for unemploymeny compensation disqualifies me. I am sure that in these tough economic times, I am not the only one to be burned by their practices. I would L.O.V.E., love to sue them in a class action lawsuit. Who do I talk to?
WE NEED TO ACT NOW FOR A CLASS ACTION LAWSUIT. Our SL’s are running out of time. Whomever posted this thread, please pool us all together as you will find you will meet the retainer amount. Once some media is placed on this it is all downhere from there.
I have found another dirty little secret AMEX true rewards cards are not really paying the true rewards. When you have a Costco membership you can only charge on a debit or American Express card, these purchases generate rewards in the form of cash back. When your coupon check is mailed out it has an expiration. AMEX CC policy is to not pay the full amount after the expiration date. We have been denied over $400 in cash rewards, pure profit to AMEX. The kicker is that the checks are easily discarded as they are generally on the last page of the statement, therefore easily missed or thrown away. Anyone know of a lawsuit involving this?
Same question, is anyone on top of this pooling us together for a lawsuit? Would like to be involved. AMX needs to pay up, it’s about time after reading 4 yrs. of blogs on several websites all saying basically the same thing. This has been going on far to long and they need to be taught a lesson. And possibly be put out of business…
American Express increased my interest rate 50%, from 9.99% to 15.25%, in less than one year. I have excellent credit, never late on a payment, often pay over the minimum amt due, and have never gone over my limit. I have never abused the card in any way. When I called to complain about the rate increase they sent me a letter reducing my credit limit. I want to be a part of any class action suit against this company.
I’m ready to sue as well… who is pooling everyone together? How many people are there so far???
LoL
Anyway. I figured it out. They want you to pay off your cards. When you could be paying off the VISA and MasterCard at a higher interest rate? They have the credit that we owe them at 0% to about 6% interest for the life of the loan? And yes, they want to stop doing business with them and puck our credit up a bit so that we will pay them off and teach those damn people a lesson. Right? Well, is what they want is to get rid of their debt that they have at a low interest rate to swindle people to borrow at a higher interest rate. Yep, they are using your anger to profit. I figured that out on the phone talking to an American service consultant. They are spending those advertising dollars to atract higher interest paying customers. It seems that almost all of the complaints are coming from people that pay their LOW interest credit off. They get a huge influx of money to grant less credit worthy people loans at a much higher interest rate. It seems to me that they can only affect a credit score a certain amount and they have already done that when they lower your limit and take away any existing low credit loan. Hmmm?
I must say these people are smart!
Very Smart! They probably own this site!
I have like a 9th grade education, but have been doing business now for close to 30 years. I figured it out pretty quickly. Yes, they are almost forcing people to pay of those low interest debts, so that they can offer credit to less credit-worthy people at a much higher interest rate. Those people on the phone have a job to do and the job is to insult you and your integrity to manipulate you to pay off those low interest cards. Yep!
Let’s get this AMEX Class Action lawsuit moving forward!!!
I’ve been a Gold Card member since 1984…never missed a payment. Ever.
I recently had to travel from Miami to Colorado when my dad was put in a hospital due to a back injury. He got a bad IV, got MRSA, then died (this is Another Lawsuit I will be involved with….). He was my mom’s caregiver–she is in Stage 4 of Alzheimer’s. So, I have been away from home & work for 6 months as I am the Trustee for our family trust.
I was trying to get a lawyer retained for the Trust, and my card was declined!! I called and was told my account was “under financial review” and when I pressed why (since I never missed a payment!) I was told by “Chris” it was just a ‘routine’ thing.
Hmmmmmm….I smelled a rat on that!
My credit is excellent, and shows ZERO late payments to all my creditors!!! So, when I talked to an Amex Rep today (July 12 2010) I was told that there had been some negative information (too many credit inquiries…a LIE!)from Experian! It’s a lame excuse and is a lot of Bull!! I have a credit monitoring service and there is no such negative information!! So, what the hell is going on????
This has caused a lot of stress for me, and over a month delay in retaining my elder law attorney! This company needs to be reigned in and SUED by their EX-Loyal customers!!
Contact me if a lawsuit moves ahead: ronwarp7@aol.com
Let’s get this train moving folks!
Ronald Woerpel / Ex AMEX user and Ex AMEX Merchant
i have been sued by amex and am seeking an attorney to help. i am a doctor i had 50k credit line reduced while my business tripled got the same comments that i was a poor customer. AMEX reduced my credit to 20,400 so that the interest would send me over the credit limit each month i transferred a balance of 40k to AMEX from BofA. AMEX also offered me to use all of my credit line when i refused they lowered it more. Finally when I really needed money to keep my practice open. They cancelled my card ruined my credit score which was 790. Also damaged my dealings with BofA where I had paid off 50k unsecured loan in 2 years. Lets get this bank. Please send me legit facts to get this moving. DOC
email ficustreeus@hotmail.com
If this goes to class action count me in as well. American Express has done on number on me. I was not the primary account holder and American Express had changed the account somehow, without my knowledge. They sent me to collections, they sent me a summons and with my response they dismissed the case, they would not verify that it was my debt, they reported on my credit, and when I would call to ask questions regarding all of this I was told we cant give you any information because you are not the account holder. American express really screwed up with me. From my research what they have done is Defamation of character, extortion, identity fraud, along with all the infractions that the collection agency has done. I have all records on all these accounts. Please let everyone know if the class action is going to happen.
Wow!
I’m joining the choir. They killed our credit score.
Got denied a purchase at a doctor’s office after being a customer since 1987!
What the hell…we are gold status??
business green card, gold personal card and business blue
Husband is primary holder-
wife pays bills – all authorized card carrying AMEX user
wife tries to online pay – can’t authentic password. After several tries, wife get’s locked out. Goes to hubby and the only way to unlock online access is to call in. After almost an hour on hold, gets through to a live person – that live person can’t help add wife as ‘MANAGER’ on account.
moves to next level. this took about 1.30 to complete. finally – wife able to pay.
NEXT MONTH…SAME story. wife only enters one wrong passcode and wham! we got hit again with a locked out account.
amex: no wife is not an authorized manager of account! back in the round again with telling the same story.
whew…good for a few months and bam! got the reduction in our GOLD status to 1200 a month – what???!!!
I HATE AMEX I HATE AMEX I HATE AMEX Why do we pay for this service
My story is like othes only in terms of my two american express cads in addition I also have a business and I unfortunately have to accept amex as a fom of payment.
Get this: not only Amex charges the highest fees , they also keep a percentage of the total amount when the charge get processed,
to top it off the funds are not available to the merchant instantly, no, we have to wait minimum 3 days for the funds to be available.(while AMEX is accruing interest on our money , that blatant STEALING.)
I called today to ask for my interest earned on this funds or if not, for them to make the money available upon payment processed.
Well the merchant rep was very “empathetic” patronizing really telling me how she understands how I feel but AMEX does not pay interest and they will not release my funds sooner then the minimum 3 days as per policy and there is nothing I can do to change that.
Wow how arrogant getting robed blind , where are the consumer protection regulators , Oh wait I remembered in AMEX’s pockets.
Please count me all in
Andreia Darian
President
Silver Line Limo Inc.
“White Glove Service On a Budget With A Smile!”
(508) 478-1750
Northbridge Rd.
Mendon MA 01756
http://www.silverlinelimo.com
reservations@silverlinelimo.com
Count me in! I had a credit card from AmEx for 4 months only. AmEX canceled my card without notification despite the fact that I sent them the required four id verifications that they requested. I have copies of the fax I sent them.
they had the nerve to send a letter saying that based on my request, the card has been canceled!! Which is a lie, the card was canceled already and I was embarrassed when it was declined at a restaurant.
They refused to send me a refund of the annual fees because they claim that I passed the 60-day limit for fee refund.
NO PRE-SET SPENDING LIMIT!!! THIS IS TAKEN DIRECTLY FROM AN EMAIL I RECEIVED THIS WEEKEND. I HAVE NEVER MISSED A PAYMENT OR HAVE I BEEN LATE! LAWSUIT SOUNDS GREAT!
“Unfortunately, we have had to make the decision to place a spending limit on your account listed above.
Your spending limit is now set at $3,400.00. Once you reach this limit, we will not approve any charges above this amount.”
It’s about time!! Maybe this group has finally gotten the goods on them. Why pay the fees? For what? I dumped them years ago.
Finally . . .
Class Action Lawsuit Filed Against American Express Regarding Improper Increases in Customer Credit Card Interest Rates
Lawsuit claims that the decision of American Express to stop tying credit card interest rates to the Prime Rate breached the company’s credit card agreements and violated the covenant of good faith and fair dealing.
Atlanta, GA (PRWEB) September 17, 2010
Atlanta law firm Webb, Klase & Lemond, LLC has filed a class action lawsuit against American Express alleging that the company unilaterally increased consumer interest rates in violation of the applicable credit card agreements. The complaint asserts that these increases were contrary to American Express’ long-standing practice of tying its rates on many credit card accounts to the Prime Rate, the interest rate charged by banks to their most creditworthy customers. This commitment was established in the company’s form contracts and through years of consistent dealings with customers according to the suit. The complaint states that American Express raised rates even for consumers who have always maintained their good standing by satisfying all account requirements, such as making required payments and not exceeding credit limits. Furthermore, the plaintiff claims American Express has taken such action even against those whose credit scores and general creditworthiness have not declined. The suit requests that customers be refunded all excessive interest charges in addition to several other forms of relief. The case, styled Meeks v. American Express Centurion Bank, Inc., is pending in the Superior Court of Fulton County, Georgia and has been assigned Case Number 2010CV190851.
According to the suit, for several years Mr. Meeks was charged a “fixed-variable” interest rate equal to the Prime Rate plus a “marginal rate” of 2.99 percent. In this manner, the plaintiff claims the company’s interest rates tracked the Prime Rate, moving up when the Prime Rate climbed and down when the Prime Rate fell. The complaint asserts that the company unilaterally ended this practice in late 2008 and throughout 2009 by periodically increasing customers’ marginal rates such that – even as the Prime Rate fell to historic lows – customers suffered higher and higher interest charges. For example, Mr. Meeks’ marginal rate went from 2.99 percent to 11.99 percent and thus, even with the Prime Rate at 3.25 percent, American Express charged him interest of over 15 percent, according to the lawsuit. Mr. Meeks claims the improper and excessive rate hikes have cost him hundreds of dollars and more than doubled his monthly payments.
The lawsuit asserts that American Express imposed these higher rates even on existing customer balances. In addition, the suit alleges that American Express’s offer that customers could reject this interest rate increase by freezing or closing their credit card accounts is inadequate because, as the company is well aware, most consumers rely on their credit card accounts and closing any credit line has a negative impact on a consumer’s credit score. As a result, the complaint contends that customers have been forced to accept American Express’ unilateral rate increases.
If you wish to discuss this action or have any questions concerning this press release, please contact Webb, Klase & Lemond by e-mail at contact(at)webbllc(dot)com or by calling (770) 444-9325.
I am also suing AmEx for reducing credit limit without notice and thereby severely damaging my business.
My credit limit has been reduced twice by AE. I had a 10500.00 limit it was reduced to $5500.00, then last month after it was reduced to $4600.00. I have NEVER been late on a payment nor have I gone over the limit. I feel like I am being penalized for being a faithful customer. This is ruining my credit score!!! I feel like just never making another payment see how they like my changes. Im in for a class action as soon as possible.
Amex set the ball in motion that cost me 50k in credit lines and 40 FICO points with 100% perfect payment history great cash-flow and I’m a merchant accepting their cards and paying through the nose.
Banks and AMEX are floating on the good faith of tax layers and screwing small business and the consumer.
I hope there is a class action
I am thinking of filing a class action suit against American Express. Here is the deal. I need to hear from people who have the same problem.
• I applied for and have in my possession a Rewards Plus Gold Card and Business Platinum Card
• Member since 1977
• Accepted card and agreed to paying annual membership fee for access to OPEN ENDED charging capabilities. (limits over 10,000.)
*2005 husband passed away and on a financial downslide ever since because of the economy and loss of job.
• September 2009 requested mortgage modification from Bank of America and due to their ultimate refusal to help and dragging out their assistance capabilities, I may loose the house is and my credit was hereby screwed up.
• In Feb of 2010 notified by American Express, on my statement that I now had a credit limit of $3000.on both cards stating that it was because my FICO score that had gone from 780 to 680. and that I owed too much. DUH!!! And the negatives due to my delinquent mortgage payments. My record with them, since 1977 has been exemplary, by the way!
• Upon checking my annual report, while doing taxes a week ago, I noticed that they still charged me the annual card fees of $150 and $395. on a credit limit of $3000. The fact that they had put a credit limit on my account was stated on their invoice – very quietly – without any notification. Yesterday I received a notice for new procedure that they are adapting.
THIS SHOULD BE ILLEGAL!!!!!!! I have had these cards since 1977 and my credit has been exemplary!!!! How can they justify a card fee, just a fee for usage and having it in my possession, of $395. on a $3000. credit limit!!!
I think this is racketeering!! I was told that I could get another card with them and that my history from 1977 with them, is BUTKUSS!!! Besides that they will refuse me because my credit with the Band of America is out of sorts.
Please see if you can help me, by telling your story, as I KNOW I AM NOT THE ONLY ONE – this can’t possibly be legal!!! I have called them several times and asked to speak to a supervisor who basically said for me to get another card. I am not willing to forfeit a card I have had since 1977 with exemplary credit, because of these greedy SOB’s. Mind you, if I stopped using the cards and kept them for “reference” they would still bill me the amounts for usage. Think about it, I have had this card since 1977! This has to stop!! The banks continue to screw us and everyone feels or thinks they can’t do anything about it. I DO – I want to file a class action suit against American Express for stealing, fraud and racketeering!
Like everyone else, AMEX reduced my Line of Credit drastically. I continued to pay it down until they cancelled my other cards, ALL OF WHICH I PAID BACK IN FULL. I then stopped paying and eventually they sued me in West Palm Beach, Florida. Brian Szilvasy of Zwicker and Associates in Jacksonville represents AMEX.
I have many records going back to the late 1990’s when AMEX began throwing credit at anyone, at first with those checkbooks, where was no fine print. Some of the check books state that they “never expire”. Other promotional literature indicates an APR tied to the Wall Street Journal. No mention is made of the right of AMEX to vary the terms of the original offer.
If any one has asserted VIABLE defenses,including one based on improper interest rate change,
I would appreciate a phone call. Thanks,Guy Stewart (561) 659 – 1810.
I just had the same thing happen to me–while on a business trip, no less. I was literally standing in line to check in when I saw the email that they cut my line by $15,000. They cut it so that I only had $152 in credit available. I am not late (they verified this) and my credit score has been the same for the last 2 years. In fact, over the last 2 years, I have increased my salary to 6 figures and cut my debt by nearly 45,000 (including a 15,000 payment to AMEX a few months ago). I ordered my credit report and saw no negative info for years. They put me in a really tough spot and now that I’m “at my limit” again, my credit will suffer. Just in time for me to buy a new house in this freaking market. I expected more from AMEX and I expect more from the law. If this isn’t abuse, I don’t know what is.
Hi- I’ve been busy with my Answer and Counterclaim. If you have a minute, I have a few questions. My Open line of credit last digits are 81005, and I see where a person in federal court is suing the Centurion Bank, and his last digits are also 81005. Do you know if that’s how AMEX/Centurion identified all those lines of credit, leaving the last in place and using different digits for the preceding ones?
Next, although the entity which originally granted me credit (in 1999!) was Centurion (I still have the convenience check book), the Plaintiff in my case (here in West Palm Beach) is American Express Bank, FSB.Here’s what I’m getting at.One of the blogs pointed out that Centurian securitized the receivables from the customers and placed them into a Master Trust. Some one else pointed out that American Express Bank, FSB acts an agent of some kind for Centurian, and some of my other checkbook in other AMEX accounts indicate that the checks are on “American Express Bank, FSB, payable through American Express Centurion Bank” This blogger’first point was that the real Plaintiff in these cases is the Trust, and his second point is that the investors in the Trust absorb the loss – not the Grantor (Centurion or FSB).
Here’s my last question: do you know how, from SEC filings, to learn if a given receivable (such as mine – 81005) is in which Trust.
Thanks in advance for any help.
Guy (561) 659 – 1810.
Hi Guy,
Good luck with that. I sent you a response by private email.
I have been a member since 1999 on my present Gold card. My credit line was cut to $24,000. in 2009. I am current and have a balance of $18,300. Most months I pay extra toward the interest bearing sub-account.Last week my card was put on hold and I got a call demanding copies of my 2009 tax returns. I also rely on this card for use by two of my employees. Does anyone have a suit going? I want in!!
Hi Duane,
I know where you are coming from. You might want to contact Guy (561) 659 -1810 who has also looked into the class action lawsuit listed 2 comments above. I believe he is aware of an ongoing class action lawsuit. There was this comment on this class action lawsuit post with a contact number of (770) 444-9325 for Webb, Klase & Lemond by e-mail at contact(at)webbllc(dot)com. I have not personally looked into these possible class action suits.
Good luck!
I’ve been treated similarly, and simply decided to take a big gulp and pay as I could. However, when a higher rate was imposed upon my account (I also paid on time every time), I decided to close the account which I always believed was my right in order to freeze the prior rate. The rate thus remained unchanged, except (unmentioned) all accrued interest was treated as cash, and indeed the rate had swelled from 15.24% to 21.24%. And of course the payments are first applied to purchases, resulting the existing cash balance effectively remaining unchanged, which I just recently noticed.
Customer service blew me off with the claim that all credit card companies do that, which I vocally debated. Indeed, no other CC company with whom I do business treats accrued interest as cash. And for good reason: I never saw the funds, and did not have the privilege of using said funds.
I did not read all the posts to determine whether this has been brought up previously, so apologies if it has. If it hasn’t perhaps the realization that you are being screwed by AmEx in yet another way will move this class action forward.
Hi Fred,
I have actually read every comment on my blog and I don’t recall the interest rate being brought up the way you mentioned. I would recommend writing a letter to formally dispute the interest rate increase on your card and cc the attorney general of your state and the FTC. That might affect the way they handle your specific case.
Good luck and thanks for stopping by.
Cheers!
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