American Express — american express reduced credit line and damaged my credit
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.