American Expressamerican express reduced credit line and damaged my credit

L
This review was posted by
a verified customer
Verified customer

I am a small business owner and I am extremely particular about my credit. With a lot of hard work, years in the making, my credit score was nearly perfect.

Because of the flexibility of the American Express Platinum card and it’s advertised “no preset spending limit”. This is advertised on all of there web sites, TV and print advertising.

(COPIED FROM THEIR WEB SITE)
• Airport Club Access
• Exclusive amenities at boutique, resort, and luxury hotels
• Platinum Travel Service
• No pre-set spending limit
• The Membership Rewards First® program
• Platinum Card Concierge Service
• By Invitation Only® Events



I applied for and received this card and paid a very high annual fee ($450.00 PLUS $250 for each additional card holder) for this privilege so that I could use it for larger purchases.

Later, because we are launching a new business I also ordered anther American Express revolving card and a line of credit account. All accounts were solely based on personal credit and I was told that up front.

American Express extended numerous solicitations on the platinum card to pay some of my purchases over time. You were instructed to request to pay over time and then they would take several days to approve. In order to help finance my new business, I also took advantage of that offer.

I paid fully and on time according to the terms of my agreement. I never made a payment late. I had only used a percentage of the credit available to me on the line of credit and the revolving card as they came with a preset limit that I was given in writing.

I purposely kept my spending below the max available so that it would not adversely effect my credit score.

Bait and switch ... I was shocked when my Platinum card was declined for a small purchase. I contacted American Express and was told that they had decided to give me a “credit limit” that was less than my current balance on the card and that I was over their newly imposed limit. They gave me no reason for doing this and gave me no advance notification.

I had recently written a check from the line of credit to cover some other purchases. I had checked the available credit prior to doing this and it was sufficient to cover the check. Several weeks later I received letters in the mail saying they had reduced my limit on my revolving card and my line of credit account.

I called and asked if the check would be honored as I had written it prior to them reducing my limit. They refused to honor it and returned the check. (costing me fees)
Their reason? Because I didn't have a Dunn & Bradstreet number. I've requested a number from Dunn & Bradstreet and have never received one. Yet remember that my line of credit was secured off of my personal credit, not my business credit worthiness.

This matter has had a severely negative impact on my credit score. By reducing the credit limits, it looks as though I was maxed out on my available credit which causes your score to drop dramatically. Not only has it limited my credit line with American Express buy has caused me to be declined by others because of the negative impact on my credit.

Not only is this False and deceptive advertising and “bait and switch”, This is an unethical practice and I feel American Express should be made to honor their agreements. Especially with regard to the fact that they charge exorbitant membership fees for the “privilege” and then renege on the original offers.

I would like my original terms restored immediately and the information corrected with all credit bureaus.


Thank You for your assistance in this matter.

Responses

  • Sj
    SJ Jul 13, 2008
    This comment was posted by
    a verified customer
    Verified customer

    Hey buddy, they did the same to me. Got two accounts for years with below 50% balance. Got the credit line reduced on both cards and put me at 95% (at least I wasn't above 100%!). Never late, not a spot on my credit history. I only used them few years ago to get some good deal with 1.9% APR and ever since I was paying only minimum payment.

    0 Votes
  • Ns
    NS Jul 15, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I just had the same thing happen to me this week. I have never been late and have been an American Express Memeber since 1998. Last week I paid down $1000 of my ballance and recently charged some business expenses since then. I just found out today after getting a few calls from vendors that my card had been declined. I called American Express and they informed me that they reduced my credit limit. So with even me explaining that I have never been late and being a long loyal satisfied customer they still were unwilling to help me with the probelem they caused. I have never recieved any noice of e-mail, phone call or letter to this day of this.

    0 Votes
  • To
    tootuff2 Aug 09, 2008

    This just happen to me today. I have always paid by bills and I've had balances from 1k to 10 per month. Today they put a limit on me for 3k, my balance was already 5 k. I never hated them. I think it is false advertising. They told me that because of the economy they have to do this now. There really should be a law suit for the false advertising. They should pay for their actions. If there is a class action suit, I would like to join.

    0 Votes
  • Me
    Member Since Early 1980's Aug 16, 2008
    This comment was posted by
    a verified customer
    Verified customer

    My experience is quite similar; after 23 years of high usage and full, on-time payment each month.

    Your credit score is affected when an institution reduces your limit as it indicates an unfavorable change in your financial standing.

    I am truly disappointed in American Express as it was the only card I used and convinced my friends, relatives and Employment Company that it was the best card, hands down, with no preset spending limit. I now know differently and will like others to know that Amex will easily destroy you in return for your loyalty.
    The only reason they gave was that the amount for the month was higher than past monthly amounts (which was not the case), so, I have to pay the amount in order to continue using the card.

    It is obvious Amex will pay heavily for their rogue actions later, but many trustworthy individuals could be pushed into rebellion against the system before such time. This is very sad …it seems no one can do anything about it.

    0 Votes
  • On
    onebigmes Aug 26, 2008
    This comment was posted by
    a verified customer
    Verified customer

    Amy, I've been a cardmember for 23 years and they pulled the same nonsense on me. I've stopped using amex entirely and suggest EVERYONE do the same. Hurt them in the pocketbook. They're penalizing their loyal customers for their poor business decisions and they have to realize there is a consequence for their actions.

    0 Votes
  • Yv
    yvonne Aug 28, 2008
    This comment was posted by
    a verified customer
    Verified customer

    Yes this just happened to me today ! no warning no call just closed my account. Always paid on time and AMEX can give me no reason other than they said their credit department made the decision and I can speak to nobody in that dept. I agree all should BOYCOTT AMEX
    Terrible company to do business with !!! They deserve NO business

    0 Votes
  • Gu
    G UCHIDA Sep 26, 2008
    This comment was posted by
    a verified customer
    Verified customer

    SAME THING HAPPENED TO MY BOYFRIEND WITH THE CREDIT LINE ISSUE.

    I HAVE A GOLD CARD THAT I HAVE HAD FOR 17 YEARS, JUST TRIED TO MAKE A PURCHASE FOR $400 AND WAS DECLINED - BECAUSE I HAVEN'T BEEN CHARGING ENOUGH IN THE PAST 6 MONTHS!!! WELL EXCUSE ME FOR BEING CONSCIENTIOUS ABOUT MY MONEY AND HOW I CHARGE. JUST INFORMED THEM I WILL NO LONGER USE THEIR CARD. WELLS FARGO AND B OF A HAS BEEN MUCH BETTER.

    AMERICAN EXPRESS IS HARMING ALOT OF PEOPLE THIS WAY. I'D LIKE TO SEE A CLASS ACTION SUIT IF POSSIBLE BROUGHT AGAINST THEM.

    0 Votes
  • Mi
    michelle Oct 03, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I cannot believe the same thing has happened to me. I three cards with amex: Platinum Personal, Platinum Business and a blue card. I have had them for four years. Never late on any of them. Always paid what was due. Today, I went to make a $200 online purchase for my business and the charge was declined. I called Amex and they told me that they reduced my my credit to $4, 500. The card I was using had a $15, 700 limit and I had $4, 000 on it, with nothing late. Amex said it was because of my Experian credit score. I have always had a 760 or higher score, so I was very surprised. I called Experian and was told my score was 789!! They then went on to tell me that I have a better credit score than 94% of the population. What is going on? I cannot get a straight answer out of Amex.

    I appreciate any insight.

    0 Votes
  • Mi
    Michael Oct 06, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I had this the same thing happen to me as well. Normally I would understand given the credit crisis, but Amex has handled this situation very poorly!

    1. I received a letter of notification several days after I had already been declined due to my credit limit being cut without my knowledge.

    2. When called for an explanation they blamed my credit score. (I subscribe to creditsecure with Amex and keep an eye on my credit score, it has only gone up NOT down). I tried not to get mad at the customer rep but they were very rude.

    3. American Express has recently implemented a new policy with reward points (allowing you to borrow points to make purchases). Prior to this you could simply pay the different up front. In looking at the terms it is clear that the penalty for not earning the points far exceeds the value of the items.

    American Express is clearly taking a turn for the worse and I will be boycotting them!

    0 Votes
  • Ry
    ryan Oct 09, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I too have had a reduction in my limit putting me to %100! I have never had a late payment on anything in my life. I will be 29 in Feb., is this age discrimination? How old are all of you?

    0 Votes
  • Vi
    Vince Oct 09, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I haven't had my limit reduced yet, but I am purposely keeping it nearly maxed while I pay off other credit cards (they offered me a great lifetime APR on balance transfers). I typically pay more than the minimum, but just enough to make it look good. I was recently denied a credit limit increase due to a low credit score. My score was actually lower when I received the card and has gone up since that time. Based on reading this and other complaints, I am confident they will reduce my limit when I pay it off and this would really destroy my credit score. Their measly 2000 limit is keeping my utilization in the 70% range. Not great, but any higher and my score would tank. Once I am no longer worried about my utilization, I will pay them off and if they decrease my limit, their card will collect a lot of dust.

    1 Votes
  • Al
    Alexis Oct 09, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I am so mad at American Express!! The same thing happened to me last night when I tried to purchase airline tickets. My card was denied and thank goodness it was an online purchase so it wasn't that embarrassing. I have never been late and have always paid my balance every month and still they managed to put me on a "spending limit" without prior notification. When I called American Express all they can say was the new limit they just imposed on my account was based on my usual spending habits and the current state of the economy. The new limit they imposed on me is lower than my usual spending habits! I don't think that I should be punished as an individual for the actions of greedy CEO's of big financial firms extending loans to almost everyone. Their actions have propelled us to an economic downward spiral. I was smart and did not buy a house I knew that could not pay for, especially get a sub prime loan, I have been a loyal customer and have done nothing to American express to lead them to believe that I am financially incapable of paying my bill. This situation AmEx has put me in, has led be to realize that they just plain out suck as a company. I definitely feel that there is no sense of certainty that a charge on your AmEx would be approved or declined, since they can apparently impose a limit on our purchasing power when ever they desire without having to justify their actions. I believe that my annual payment, my loyalty, my history of credit reliability with AmEx means nothing to them. I refuse to do any further business with them. I have since then closed my account.

    1 Votes
  • Pe
    pete Oct 16, 2008
    This comment was posted by
    a verified customer
    Verified customer

    Apologies in advance for the long story. I've had an Amex Blue without issue for about four or five years and have been quite tight with my use of it never going over 50% of the credit limit and usually paying it off in full within one to two months.
    I was initially approved with somewhere around an $8K limit, then it bumped up over the years to $11K, then $16K, then somewhere over $20K, and finally earlier this year to $35K.

    So, let's begin the "fun"- Here's a little timeline of events:

    1. September 16th 2008 closing date statement:
    $35, 000 credit line. $2030 purchase made this month.
    This is the only purchase I've made on the card all year.
    Made a minimum payment, with the intent to pay off two equal chunks, or one full chunk, by the next statement. I consider myself pretty aware of credit scores and rules, so I figured the month of usage might help keep my card looking active, as I was thinking of beginning to use it a little more over the holidays for rewards points purposes. I saw a news piece a couple of weeks ago talking about credit card companies and the economic crisis going on right now, and how AMEX specifically was planning on decreasing limits on some percentage of its users.

    2. Around October 7th, 2008:
    I receive three balance transfer checks from AMEX blue in the mail. First time that I've ever received them over the life of my card membership.

    3. October 8th, 2008 - (Wednesday):
    I write one check to WaMu mastercard to pay off a balance of $2000.
    I write another check for $1900 to pay off a citibank card that does not have online payment access.
    Both go in the mail.

    Just to clarify: at this point, I figured I am just using these checks to show some usage of them, in order to keep myself looking active as a blue card user.

    I was about to zero out my balance on Amex Blue, and transfer $3900 to it. Then pay THAT balance off in the next cycle. I always figure if i have these cards and the cash to pay them off, why not get their free perks and usual purchase return protection, etc, rather than using cash directly. Hopefully at this point you can sense where this story is heading and the amount of frustration I about to experience.

    You'll also see why the dates, and days, are keeping this making some sense.

    4. October 14, 2008. Tuesday:
    I check my WaMU mastercard account and see that they quite quickly received the Amex Blue transfer check and posted the payment of $2000. I don't give it any further thought. All seems fine. I don't bother to check the citibank card.

    5. October 15, 2008, yesterday.
    I realize my blue card's closing date is coming up. I decide to log on, and squeeze in a big payment before the closing date so that my statement has no payment due, and I wanted to make sure it was substantially more than the minimum.
    To my dismay, I do not see my credit availability as "$32, 970" but it is INSTEAD $170.
    That would mean that my card went from a $35000 limit with a $2000 balance down to a $2200 limit with a $2030 balance.

    At this point, I'm confused. I check my WaMu account again and it's fine, still shows a posted payment of $2000. I hurry and check the citibank card account, and see that the Amex Blue check for $1900 that i sent in has been received and had bounced on 10/14 (Tuesday). But this doesn't explain the check sent to WaMu that they posted as a payment. That would mean that my limit is $2200 but my balance is now $4030... !?!?

    I call AMEX. The customer support person can't really help, and forwards me to the credit line department. I am on hold for 30 minutes and eventually hang up.

    (by the way thanks for keeping up with me this long)

    6. October 16, 2008, today:
    Call AMEX credit department again at 9 am. They explain that on October 13th, 2008 (Monday), my card was "evaluated" and the credit line was dropped. They apparently sent out a letter that day too- but as of yesterday, I still hadn't received it. They have no ability to explain their messup in sending out Balance transfer checks then creating a situation where they'd bounce!
    I asked about my payment to WaMu using a check that appears to have been processed just fine- except it's not showing on my Amex Blue online statement. The customer service person tells me "it's going to be denied"...!
    At that point, I asked to speak to a supervisor, and the wait time was so long that I had to leave my number and am now at 1pm EST still waiting for a call back.

    ISN'T THIS A BIG PAIN?

    Some thoughts- Might be assuming here, but AMEX's credit line department must be getting A LOT of calls like this right now, hence the news report i mentioned earlier and the extreme wait times.

    My fears now:
    -I am going to get hit with a return payment on my WaMu card if that amex check bounces. As of today, 10/16, it still looks fine when i check the WaMU statement online. I don't even carry the WaMu card, so I can't even call them right now.
    -My AMEX blue statement closing date is today, 10/16. When Amex reports to FICO, I will suddenly have a $2200 balance that for all appearances is maxed out with a $2030 credit line. This is a situation I've avoided my entire credit life.

    I'm waiting for the supervisor callback until about 2pm, and am trying to find out if I can make a phone payment that would post TODAY, prior to the statement being generated. Otherwise, I can pay online but it won't post in time to make the statement (it needs 24-72 hours, I would have paid yesterday, but I thought there was something much worse going on with the account, until i googled and found many articles such as this one).

    To add insult to injury:
    I have an AMEX platinum and gold. My wife and i use those quite regularly, basically as cash. Amex has begun offering a credit portion on those (in other words, you don't have to pay it all off at once if you don't want), and JUST NOW, in late september, enticed us to turn this feature on with a rate that was lower than our AMEX blue card! Don't think I'd ever really use this feature, but figured it's always good to have a backup. Each month they automatically put anything over $100 into that portion of your credit/charge list.
    Easy way for them to make money, i guess.

    So, now I'm just frustrated. $35K limit down to $2K. Overnight.
    NO notice- except for the letter I'll probably get in the mail today. And, all of it done WHILE other institutions are trying to cash the amex balance transfer checks!!

    BLAH!

    0 Votes
  • Ll
    ll Oct 18, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I just got a notice today via email that they cut my available balance down to about 300 dollars over what my carried balance is at. So I am sure it looks great on my credit that I am almost at a 100%. I am only 29 with excellent credit and AMEX is deciding to hurt tons of small business owners and regular folks because they decide to loan money unwisely and are suffering a credit crisis. I am not sure how much it will affect my score but I think it will hurt them more in the long run. This is about the time that I will do a 0% APR transfer to BofA or Wells Fargo. It is poor business practice and I hope there is a class action lawsuit. There is a term for this 'Indian Giver' and I am native american so I am allowed to say this they should be ashamed.

    0 Votes
  • Pe
    pete Oct 18, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I was also posting this on another page- http://www.totalnoid.com/2008/06/10/un-american-express-targeting-profiles-to-decrease-credit-lines/#comment-3383

    So in one piece of good news, my online payment attempt of $1000 was actually posted JUST in time and at least my statement now will show a $1030 balance on a card with a $2200 limit- I’m no longer in fear of how my FICO is affected.

    I have yet to get them on the phone after four solid attempts- even just sitting at work I’ve had to hang up after half hour wait times. As of today, Saturday 10/18, I DID see that the balance transfer check to WaMU mastercard bounced on 10/14. I guess WaMU’s site didn’t update until today- and I was hit with a $35 fee. Based on everyone’s comments and the fact that it’s another institution I highly doubt I am going to get this refunded to me by AMEX blue, but it can’t hurt to complain and try to get this refunded.

    I’m definitely paying this card off after I try to get that refund. I guess I may as well close it.

    You know what the really funny part is? Now at the bottom of my online statement, the button for “request a credit line increase” is suddenly back! HA! Maybe i should click it…

    0 Votes
  • Tr
    Trebor Lloyd Oct 30, 2008
    This comment was posted by
    a verified customer
    Verified customer

    Yes, at the moment I consider American Express to be the ### of the earth. I've had a card for decades and for decades, even including some bad times, I've paid more than the minimum and always on time for both my personal and business accounts. I don't think American Express understands the anger that its actions have stirred up. Right now, despite the dire economy, things are improving for me and the first thing I'm going to do when I am able to do so is switch to another credit card company and ditch these disloyal and greedy SOBs. I encourage everyone to do the same when and if they can. We have the power together to make American Express pay dearly for its disgusting behavior. Let's do so.

    0 Votes
  • Ji
    Jim Nov 04, 2008
    This comment was posted by
    a verified customer
    Verified customer

    We all have to realize that credit is a "privilege" and certainly not to be taken for granted, however, for AMEX to turn on some of its best customers with unfair credit line decreases and little if ANY notice is a question of ethics! This directly impacts our credit scores and once another creditor(s) get wind (which they WILL) its only a matter of time, thus leading to MASSIVE credit score reductions! I ask, are they making the right move in effort to "alleviate risk" and "walk all over" their customers, or is AMEX merely inviting millions of upset people to simply "walk away" from them adding yet more to their mounting unpaid credit card debt?

    0 Votes
  • Se
    Sean O'Reilly Nov 09, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I completely agree with all these comments as the same thing happened to my business. Amx has had absolutely no shame in lowering lines of credit without notification causing bounced checks and thereby degrading their customer's credibility.

    One can blame the accursed legions of lawyers and lack of congressional oversite that these "lenders" use and hide behind when creating contracts which allow for unilateral termination of credit for any reason whatsoever--this would include the color of a customer's shoes.

    Who runs AMX? A group of ###rdly ###s who pretend to offer decent customer service but when it comes to really offering customer service fall flat on their faces.
    Why on earth are they all running around like chickens with their heads cut off.
    Poor American Express, they are so without resources.

    Amx decided months ago to terminate lines of credit and instead of announcing a date when the accounts would be lowered or closed, they chose to send letters out AFTER making the decision and closing or lowering lines of credit.

    0 Votes
  • Am
    amexsux Dec 14, 2008

    I too am a Business Owner. I was lured by their "OPEN" advertisement, and used them to secure additional working capital instead of going through traditional banks. I had a card with a $38k limit, and as soon as I made a significant payment, they reduced my limit to $8k. A $30k decrease - I got a call on a Sunday night! Same BS from the other posts above when I called... I have been never late, and I bring in revenues of over $1MM in my AMEX MECHANT accounts.

    I totally feel like I have been raped. If I was late for 1 payment, I can understand the consequences, but they did this on a "routine review"... I don't remember them doing a "routine review" in the last 4 years???

    This is now hindering my cash flow, as I feel like I just lost $30k into the wind.

    Someone should put up some "public announcement" type commercials about UN-AMEX.

    I will be willing to give a testimonial to their BS.

    0 Votes
  • Og
    OgTerror Dec 27, 2008

    This is my motto of Amex: "American Express... Leave home with out it!"

    The following is a letter I recently sent Amex.

    To whom it may concern,

    Unreasonably penalizing me has been a tremendous insult and a slap in the face. Reducing my credit limits on all of my American express accounts was unwarranted and uncalled for. While it is true that I owe a balance on some of my accounts with you and other creditors, we both agree that I have made my payments on time if not in full but at least I have made more that the minimum payment required. The accounts that I carry a balance have a stable interest rate, at a reasonable, predictable level. They also have regular payment amounts that are manageable within my budget, and can be paid on time. Moreover, I make sure that such debt is paid in full, before attempting to use the account again.

    I have requested the amount of credit in a short period of time for the sole purpose of building an excellent credit history in order to make a successful personal and financial future for myself. Lenders cannot determine if I am a responsible borrower if no accounts are listed on my credit history. Nor can they tell whether I have made payments on time or were late if no balance was ever reported. Therefore, being in dept is the main factor to prove to my lenders how well I manage my accounts. Having accounts with a high credit limit or loan amount is another factor that would indicates to my lenders that I can be trusted. I consider myself a responsible lender because I borrow only what I can afford to pay back. I also, always carry reserves in CDs, mutual funds, and savings account. These reserves I will use in the event that I need to pay off my depth and not ruin my credit history.

    My credit profile indicates that I have made my payments on time and never have I had or currently have any overdue accounts or derogatory information, such as collection, charge-off, or bankruptcy. I maintain a good cushion of available credit between my current balance and my credit limits on all my open trades. While Visa, MasterCard, and Discover are congratulating me on my excellent credit history and increasing my credit limits, the person/s making decisions at American Express are lowering my credit limits not on one but on all of my accounts. This has now caused a negative impact on my credit report; but needless to say it has also caused American Express a good customer and potential future customers. I now view American express a company with unfair practices. The likely hood that I would recommend American express to family, friends and colleagues has drastically declined from Ten to ZERO. I now understand why most businesses prefer to use Visa, MasterCard and Discover than to American Express. But I also understand how difficult it is to get the big picture when you, (the person/s make decisions at Amex) have such a small screen.

    Attentively,
    Leonardo Medina

    0 Votes
  • Do
    downwithamex Jan 28, 2009

    I completely agree with all of your statements. My American Express card was canceled despite never having been late on my payments and not exceeding my credit line. I needed to speak with 3 agents and specifically ask for a supervisor before I was able to receive any intelligible answers. I was then informed that the company has 7 years to perform a review and to then adjust rates as they choose. I now have only 90 days to pay off my balance or else be reported to credit bureaus as being delinquent in my canceled account and owing the full amount. I would love to be a part of a class action lawsuit if anyone finds a viable way to do it!

    1 Votes
  • Ch
    Cheryl Feb 23, 2009

    I agree with all the above. This has happened to me twice. My AmEx was just reduced a few days ago and I have never missed a payment, I have not used the card in approximately eight months, never exceeded my credit line, and make two payments per month. When checking my credit report it clearly shows, I have an excellent record of payment with AmEx and all other creditors, therefore, I do not understand how they can "profile" me and reduce my credit limit. I immediately contacted them to inquire about there action and they did not have a clear answer regarding the reduction. But, like I have read with other complaints, it appears they seem to expect these calls and have a script to say nothing. I no longer plan to stay with AmEx because of they credit practices which are illegal.

    0 Votes
  • Sc
    Scott Owens Feb 27, 2009

    They have done the same to me. Read Below.

    February 27, 2009
    American Express
    Consumer Affairs
    P.O. Box 981542
    El Paso, TX 79998

    Dear Consumer Affairs,
    I have been a loyal customer and card holder of American Express for over 10 years. I am extremely disgusted by the way I have been treated by you and your company. I hold a Platinum Charge Card, a Blue Credit Card, and a Delta Sky Miles Card. After consulting your customer service department I was told not to pay off the cards and that leave a small balance on them would continue building credit with American Express. In Aug. 2008 I made a payment of $8000.00 on the Blue Card as well as a $3500.00 Payment on the Delta Sky Miles card. This is on top of the $2000.00 to $5000.00 I pay monthly on my Platinum card. My calculations are that I spend about $40, 000.00 a year with you and this is how I have been treated.
    After Paying down about $11, 000.00 in balances on both the Blue and Delta cards which I was informed to do by YOUR company’s customer service department instead of paying them off. YOU American Express lowered my credit lines to about $100.00 over the balances left. Wow I give you eleven thousand dollars and you penalize me! How dare you. This is bad business but still I kept all my cards with you after speaking to one of your Customer Service reps who informed me that they have reevaluated everyones credit lines during these tough times.
    Well times are tough and I got laid off in December and start a new job March 16th. When I knew things could get tough I stopped using my Platinum charge card and decided after 2 months that I would not be able to pay the full balance which is around $2000.00 dollars. I called to pay $500.00 and to move the remanding $1500.00 to a line of credit which I could pay over the next few months. I had done this in the past and paid it off and was told it would not be a problem to do again. After I was transferred to a specialist who could do this I was told I could not and that I needed to pay the full balance. I informed her I could not until the first week of April and that I would like to pay $500.00 and she told me that $500.00 was not acceptable. NOW you can wait on your money and as soon as I can pay the balance off I will cancel all 3 of my cards and never again will I do business with American Express again nor will I have anything good to say about American Express to anyone. Your company really disappointed me and when we come out of these hard times I hope American Express suffers for the way they have treated there trusted clients.
    Sincerely yours,

    Scott A. Owens
    Card holder since 1998

    Scott Owens
    Brunswick Ga.

    0 Votes
  • Jl
    JL8 Feb 28, 2009

    I have a 25k credit line, always paid off. I wanted to park $23k balance from my BOA on to my True Earnnings Amex since my promo from BOA 1% was coming up due in March 2009. I spoke with a rep over the phone to do the transfer and after a few days later i was rejected due to my current credit score of 758. The letter was not specific in anyway, they just stated after evaluating your current report blah blah blah blah blah. Anyway to make a long story short, i now have to dip into my savings to pay off the $23k. I have currently all these cards no balance AMEX Clear $20k AMEX True Earning $25k AMEX Gold small business up to $200k yes $200k AMEX Simply Cash $30k. I am a bit sour at AMEX amid this global crisis and their way of donig business without any pre warning. I am sure a class action will come about, when one of the lawyers gets their card declined or rejected and he googles this.

    0 Votes
  • Fr
    Frank Mar 17, 2009

    I agree! I have never been treated so rudely and poorly by a company before. I had my AmEx for about 2 years and never been late and always paid on time if not early. I paid my AmEx card off to a zero balance since I was heading out of town for a conference that I was working at and I wanted to make sure I had enough funds to cover my hotel and expenses. I paid my card on 3/10 and 3/13 they closed my account without any notice and I was put in a horrible situation since I was out of town and was counting on those funds to be available, when I called them they were very rude and could have cared less.

    0 Votes
  • Pe
    Peter Balbus Mar 19, 2009
    This comment was posted by
    a verified customer
    Verified customer

    American Express - is there even one individual in your organization with a BRAIN?? Read the posts above and add my complaint to the ever-growing list. My interaction with your customer "service" department was the last straw. Cut my credit limit without notice despite a 100% perfect payment history for 5 years. The no "preset spending limit" is a crock of sh*t. That doesn't mean that they'll readily increase it. It means that will arbitrarily cut it, in some cases below your current balance, on a whim - claiming that it's based on a 6-month moving average of your payment history.

    Consumers and business owners - AVOID AMERICAN EXPRESS AT ALL COSTS! Vote with your feet - we do not have to put up with their inexcusable antics.
    There are plenty of great banks with VISA and MasterCard offerings that don't play games with their credit limits. Let's put American Express in the same Hall of Shame as Oldsmobile, Eastern Airlines, Lehman Brothers, Enron ...

    0 Votes
  • Ju
    junn Mar 20, 2009

    I found my Amex card was closed out today without any warning! I have had the card for 4 plus years and had always paid on time. Not only was my card closed, but I loss all of my hard earned points! These unethical and unfair practices being perpetrated by American Express and the people who works there should be held accountable to some kind of justice.

    I will never hold another American Express card again, and I will make every effort to warn other individuals.

    Damn to American Express and to those individuals who make these callous decisions.

    0 Votes
  • Sd
    SDRob Mar 24, 2009

    I had the same thing happen about 2 weeks ago. I have been a member since 1998, have a plat card, blue and the costco card...My authorized user went to use the costco card (which had no balance on it) and it was declined for a $300 charge?? I had plenty of room on the card and I too called Amex to inquire. I was advised my account was under review for a credit line decrease and could not use my card until it was lowered?? I was confused so I called plat card to see if they could give me a better answer and they could not, I was also told that due to the economy that all card members were being evaluated, etc...My credit score is >800, nothing has ever been late and when I get the email that a "new" bill was available on line I paid it in full... I think Amex should go out of business for shotty business pratices, I cancelled ALL my amex cards and paid them off in full that same day... They told me since I was such a "Valued" customer w/excellent credit w/them that they would have someone call me back to discuss my decision to close my accounts... apparently they dont give a ###, that was 2 weeks ago and I still have not heard anything...I will NEVER have another Amex card... I have even gone as far as to discuss this situation to our company owner who is going to cancell all of our corportate Amex cards (which we spend >100k per month on them) and go with Visa... if they are going to do this and ### peoples credit up doing so making the persons debt ratio go bezerk they should have to correct this ###... I closed them all and paid them before my debt ration went out of wack and ruined my good credit score...they really dont care when you call them either, they are just like "oh well" another one cancelled their card... Well when everyone gets rid of their cards who do they think is going to pay their salary..

    0 Votes
  • Je
    Jennifer B Mar 28, 2009

    While there are no shortage of complaints I too want to share my frustrations over recently having my American Express Blue Card canceled unexpectedly. Ironically its a card I use somewhat infrequently at places that don't accept other more common cards, e.g. Costco. I used it by accident to purchase gas on a business trip in February - mistaking it for my company card and promptly received a letter stating that the card was being canceled. I assumed it was due to lack of use (not realizing yet that I'd used it on accident) but was told by the customer service rep that I spoke with (in an extremely demeaning and condescending tone I might add) that it was because I'd had a negative report against my credit history. That came as a shock since I have worked very hard to protect my credit and maintain my high score. Turns out it was a bill for $40 that my doctor didn't file correctly with my insurance company (or send me a bill for, or call about) that got turned over to a collection agency back in September. I made a few more calls and got the bill paid off immediately (its much easier to pay a bill when you know that it exists) and I was surprised that the folks at the collections agency were much more polite than the folks at American Express had been - despite the fact that I'd been a loyal and reliable customer for nearly a decade.

    I got my statement in the mail today - and it suggested that I still had several thousand Membership Reward points eligible for redemption. I figured that would be a perfect way to get some semblance of resolution - but discovered after calling their customer service number that the points were gone before I'd even received the membership cancellation letter.

    I don't mind loosing points or being forced to immediately pay my balance (thankfully not that large since I'd only made the one charge for gas) but I do mind being treated like someone who'd done something wrong after being a loyal and trustworthy cardholder for so many years and I greatly mind the negative impact that the account closure will likely have on my credit score. As I'm currently in the process of refinancing a mortgage I fear that the later could potentially cost me thousands.

    Obviously at this point I wouldn't recommend American Express - as I wouldn't wish for anyone to have the experiences that I've had (or those that others have explained in this forum that are truly far worse) but I also hope that there can be some sort of effort made by American Express to repair the damage that they've done to individual customers who have suffered as a result of their recent practices. Companies that act this way certainly don't deserve to receive money from American taxpayers nor do companies who treat loyal customers so poorly deserve to stay in business.

    Jennifer B.
    Bloomington, IN

    0 Votes
  • Jo
    John Crawford Apr 05, 2009

    I've had the american express card for over 20 years. by 2009 i had a delta american express card, platinum card, and the blue card. I've been using credit and the american express card to run my small decorating business for 15 years. I often would make a large payment and then make a large purchase. I have an excellent record of making payments on time. Recently I made a large payment of $11, 000. Shortly after making the payment i needed to make a $9000.00 purchase. I went online to see if my payment had cleared. I saw the payment had cleared but the credit was not available. I called Amex and spoke to a customer service rep. The CS rep assured i was an excellent customer and i had nothing to worry about. as i was talking to CS i refreshed my screen and the credit line appeared. The following day i went to use the credit line and it was declined. I call CS and was told that my credit line was lowered by $11, 000.00. I was dealt with by CS like I was the lowest thing on the food chain, talked down to, and i felt like i was not worth their time, and not one person was interested in listening to my problem. Amex's computers had made the decision and that was it. Goodbye chump. Following this event my financial infrastructure fell apart. I blame AE directly responsible for the collapse of my business. You can look at my credit report and see no derogatory marks until after the Amex credit event.

    0 Votes
  • Di
    disgruntledOkie Apr 06, 2009
    This comment was posted by
    a verified customer
    Verified customer

    We have used AmEx Blue and gold cards for several years with $20, 000+ credit limits. We have carried balances in excess of $15K several times and paid them off in full over and over, NEVER late. We never pay the minimum $200-400 due... usually pay $2, 000 to $5, 000 at a time. We have excellent credit, just bought a new home, pay all bills on time. Husband got a big promotion and I received a good raise this year and we have "recession proof" jobs. When my AmEx Blue was declined yesterday while making a large purchase I laughed and told the clerk to try it again... declined again. How embarrassing! I put it on the Visa and told my husband. He called AmEx this morning and was informed that they have dropped our credit line over $10, 000 to just $200 over our current balance. They said "market conditions" were the factor. I pointed out our excellent payment history and the volume of business (and interest payments) we provide them. I asked to have a supervisor review this and was told it would be 90 days before they would reconsider. My husband is enraged and will pay it off and cancel the account entirely. They have already damaged our credit with the reduction of credit line, so we don't care if closing of the account is negative on our credit score. We can and will pay cash. Why does a company run off good paying, productive customers? Why drop us, but keep a customer who pays late fees but will default on the big balance as the economy tanks? AMERICAN EXPRESS IS IN BIG FINANCIAL TROUBLE. If I owned any stock in them, I would SELL IT NOW. We are cashing in all of our hundred thousand rewards points onto gift cards before they decide to close our account or go out of business altogether. I suggest you do the same!!

    0 Votes
  • Ar
    Ari Apr 06, 2009

    I 'm with AMEX since 1997 EXCELLENT credit never been late with them received a credit reduction letter in the last 4 months I was reduced from 27, 000 to 15, 000 and now to 8, 900 these ###s left me with a $ 300 open credit, in the eyes of a Bank it looked as if I'm maxed out, which means my FICO score is affected. AMEX is the most corrupt credit card Compamy all consumers should complain for their practises. I'm writing a very strong letter to FTC, my cousin has a friend who works for the New York Times, These ###s deserve all the bad publicity.

    0 Votes
  • Rp
    RP7 Apr 21, 2009

    This is the letter I wrote AMEX and never received an answer:

    "I heard once that a bank lends you an umbrella on a sunny day and asks for it back when the rain starts.
    I spoke to your associate two days ago when I receive the call, he was very rude and told me that I had serious delinquency on my credit report. Yes, I do have 1 item from the University of Phoenix that was a total scam. It is paid for, it was paid 4 years ago. My credit score is over 720 and my wife over 750. We make over 250K annually and I did take this reduction personal due to the manner I was talked to. The kicker being that I just paid 13000 for a bill of 13000, I don't carry balances, maybe this is the reason you are so upset since you get no interest from me.

    I use this card for business, but I will not user American Express any longer. My company *********** has 6 Platinum cards that we pay 300 yearly for each, I will close those accounts as well. I had another American Express with Bank of America and it has already been switched to a VISA.

    Don't worry about my credit worthiness, you won't have my business any longer, as a matter of fact I also cancelled our account with my credit card vendor and as of Tuesday we don't accept American Express at my business as well.

    Thank you for informing me though. It was very thoughtful of you.

    Regards

    RP

    0 Votes
  • Ha
    Happer May 09, 2009

    I have been with Amex since 1992, I have 3 cards. My costco true earning had credit line of $37500, it was reduced to $100.00 Only. I have perfect credit and last year alone I used this card for over $260K and paid it off. I have cut my Amex cards and now I say to everone, Please leave home without it.

    0 Votes
  • Iu
    Iulian May 28, 2009
    This comment was posted by
    a verified customer
    Verified customer

    Hi, I started a cause on Facebook called "Boycott American Express". Feel free to join and spread the word:

    http://apps.facebook.com/causes/289806

    0 Votes
  • Fx
    fxdiva Jul 11, 2009

    Hi All,
    I had both business and personal accounts with Amex. All are in good standing. In October I experienced the same treatment from them by lowering all of my credit lines. I canceled 2 personal and 3 business accounts because of this. I have been paying down the balances on time each month since then. I received a call yesterday from an Amex rep. She told me that Amex was requesting that I make a payment that day to further bring down my amount owed. When I asked her why she told me that I had balances outstanding. I said yes but they are paid on time and based in Amex's treatment of me personally and my business I do not feel compelled to advance my payment schedule. Besides the accounts are closed and I have given my business to Chase. She began to tell me about the amounts Amex had extended to me in the past ($50, 000 +. This was paid in full over 2 years ago). I pointed out that that should have been their criteria when they decided to lower and stop customers credit lines. I confirmed that all of my accounts were closed and I told her that if and when the economy gets better Amex will never get either my personal of professional business. As for now, I will continue to pay down the balances but I will not over extend my financial situation to apese American Express.

    0 Votes
  • Jp
    jpeo Nov 13, 2009

    I've been a customer since 1993. We put everything on Amex, everything...so we run a high monthly bill on our supposedly unlimited charge card, around $6, 000 a month and up to $12, 000 with vacations. I got an email three weeks ago saying we had a limit of $10, 200 which, since I was about to make payment for that month, meant if we'd spent more then a couple of hundred dollars over two weeks on it, we'd go over the limit. the email claimed we'd get postal advice, which never came.. in the post i got advice THREE SEPARATE TIMES that they had removed our flexible payment option. an option i had never used, never asked for, had it foisted on me by evil Amex.
    I have never missed a payment (they agree with me on that), have an excellent credit score... i am fighting with them every two days to resolve this. i sent them a 12-page fax of credit reports and their stupid letters and tonight told they haven't processed it yet...they've had it for one week. bad luck for us if we take a week to deal with them. i'm so over amex but don't want to cancel my card and damage my score... Class action--yes!

    0 Votes
  • Ev
    EvilCreditors Jul 12, 2011

    I have posted prior and continue to read all this about Open from American Express designed to help your business with cash flow. OMG they are evil, they charge merchants for the points that they give their customer and do not tell the public whom is acutally giving the rewards, in return they pull you credit line from you for no real reason to their "va;lued" customer... They will sue you, they will damge your credit by lowering your credit lines and making you apear debted out, they will send you to three attorney and collection agencies for no given honest reason, I had one attorney put a negative reporting on my credit card whom hasnt even sent me any information then they play dumb to it. Thye hire people whom will nto discuss anything with you but threaten lawsuit and try to place a lein on your business. They are truly evil. I am suing them, tehy have caused me grief unlawfully and I will see victory in their nonscence business practice, they cause small business closures and are strictly evil.
    BYCOT AMEX!
    If your doing business with them, stop they will get the best of you in time these posting are all 100% honest on thsi forum!

    0 Votes
  • Jm
    JMCockerham Oct 01, 2014

    In December 2008, my business was ruined by American Express
    who had extended us unlimited credit, only to withdraw the credit without any
    reason or warning. I lost everything—my retirement, life savings, my credit
    rating and my home. Claiming “unjust enrichment” AmEx then suited me for the
    unpaid balance.

    I have been in court for 5 years trying to represent myself.
    Finally I have a prominent law firm interested in the case and even a class
    action suit. I need the stories of others that have been damaged personally or
    in their business. It can be in the form of a letter, but to be considered as
    evidence in the case, I need stories notarized as an Affidavit. (click on the
    link below to see my affidavit.)
    http://constitutionalinjustice.blogspot.com/2014/09/american-express-nightmare.html


    Also, should you have any contacts, I need the media’s
    coverage. Please let us know if anyone can help.

    John Cockerham

    [email protected]

    (954)-963-4025

    0 Votes
  • Ch
    Charan7872 Aug 21, 2017

    The Same issue of reducing the credit limit happened to me today. The American express customer service(from India) sucks, they doesn't speak good to the customers. They reduced my limit 8000 without any sort of prior notice. They sent me an email after doing it. American express will be sued someday if they dont understand the customer's problem. They will have to face the consequences in the near future. Playing with the life of people is not the right way of doing business. They say it's a customer centric company and never bother about the customer problems, what sort of a company it is?. I'm going to close the account in few more day's shortly after paying the dues. USA's most useless credit card & service ever.

    Charan.

    0 Votes

Post your comment