CHESSNOID

American Express is becoming very aggressive in their approach to raising revenues as well as reducing their risk.  How are they doing that?  They are calling credit card members (not late or past due)  who have balances owed and asking them to pay it earlier than the due date.  They are also asking them to make a substantial payment and preferably the balance in full.  Now that is very creative in raising your company’s monthly revenues.  How do I know this?  It’s like everything else I know, just from personal experience and other members commenting the same thing happened to them on my blog.

The question is how are they able to succeed in getting the credit card member to pay early.  They simply freeze your credit line until you comply with their request which makes your card useless.  Pretty harsh actions but these are harsh times.  So that is how they are raising the company’s monthly revenues.

On the flip side, they have decided to reduce risk by  reducing your credit limit or canceling your card after you make the big payment to them. Ouch!  Yes, it is true.  They coerce you into paying early (the entire balance if possible) and then they shut you down completely.  A slap on the wrist and then a slap in the face.

The question is why would you want to continue giving a credit card company business after they treat you like this.  If something like this has happened to you, please post a comment and share with others.  This is how we learn what the sneaky tactics bailed out companies use.

Jeff:

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 embarrassing 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 immediately 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

BA:

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!!

Chances are if you are getting a call from your credit card company for a payment that is not due, then your account has probably been flagged to be closed or your credit limit reduced by the next billing cycle.