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American Express / lowering credit limits for no reason

1 CA, United States Review updated:

My credit card limit was recently lowered from 17, 000.00 to 5, 000.00 dollars. When I called to question this action I was told that I have delinquent accounts on my credit report and that my proportion of balance was to high. The people I talked to said that My credit score showed delinquent accounts, so I went and looked at my credit report which I pay American Express to monitor, and nothing has changed for a long time. I have had no delinquent accounts in a long time, and I certainly have not have had any since I applied for this card and got it about 8 months ago. They told me that they credit report I was looking at which was all threee of the credit reporting agencies was only 75% accurate. How is that possible what am I paying them for if I only get some of my credit report? They then told me that I do not pay enough each month, in November of 2008 I paid 9, 000.00 dollars, well above the minimum payment, also I pay more than the minimum payment every month. My question is the legality of this. I assume this hurts my credit, and If they do this whithout good cause and without any grounds is that legal? They will not tell me anything more but that, I just dont see how this is legal. Also this happened to my parents company. They own a small buisness, and American Express cut their credit limits and told them it was do to credit scores. When hey researched it they found that they were wrong and that their credit was excellent and they always paid their bill, American Express gave them the run around for 6 months until they just gave up. This is wrong if not legally than morally!

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Comments

  • He
      11th of Feb, 2009
    +1 Votes

    I am havig the same problem with Amex...

  • Rc
      3rd of Apr, 2009
    +1 Votes

    AMEX has lowered my limit twice since December of 2008. Each time, they lowered it to less than 1k above what I owe them, and in both cases the letter from them states it is due to poor credit report, and high risk.

    In both instances I immediately went to Experian to get my free credit report that is allowed whenever someone is denied credit. I also paid the 5.95 extra to get my credit score.

    Both times my credit report shows NO POTENTIALLY NEGATIVE ITEMS!!!
    In fact, my credit score which was 782 in Dec. of '08 actually went UP to 785 this time around!

    American Express, shame on you for not just telling the truth. If you have overextended yourselves and need to pull back some credit that you have out their to protect the company, fine...just do it and say that's why.

    Don't send bogus letters to long time customers saying that the reduction in credit was OUR FAULT!

    If AMEX does not want to stick with me during the hard times, I do not want anything to do with them during the good times.

    It is my intention to pay off my balance with AMEX and cease to do business with them going forward.

    They are going to find I think that this will backfire, and their plan to "protect the company" is going to end up costing them the company all together. American Express will be just one more thing we talk to our grand kids about when we speak of the "olden days".

  • Lp
      4th of Jun, 2009
    +1 Votes

    I wish some attorney would start a class action suit involving all of us who have been duped on this american express credit card sham!!! As far as I am concerned, they are involved in criminal acts. There must be thousands if not millions of us out there who have been abused. I don't care if I ever get a dime out of this . I would just like to see them fry on this whole deal. Just because the whole economy tanked, why should we all of a sudden be the bad ones with alleged bad credit risks. If you ask me, they are the ones with the problem. Why the government ever allowed them to be become a bank and borrow money is beyond me. Now we are paying the price for their poor money management.

  • Ih
      8th of Jun, 2009
    0 Votes

    I had the exact same thing happen. I have stellar credit. Never missed a payment, or been late. I have an AmEx business card - they've lowered the limit twice. I also have a personal card. We used it at Costco this last weekend and got an AUTOMATED phone call a few hours later that they'd lowered my limit from $10K to $1000! WTF!!. So, we will be paying off the balance and canceling. They apparently don't want any customers. Especially the kind that can and do pay their bills.

  • Di
      11th of Jul, 2009
    +1 Votes

    Did the same to me today. Told me I had several negatives on my credit report. I got my report and none!! I called back and was told debt to income to high. Credit score 780??? How could that be? Cut my limit from $11, 000 to $4, 300. I am at $4, 100.00 and that means it looks like I am almost maxed out. Also told I don't pay enough each month. I only had one bill since I had not used the card in over 5 years. I paid 3 times what they asked for but was given a response that I now I charged $3, 000.o0 more this month and haven't paid anything on it. I have NOT even received this months bill never the less pay it. It is not due till the end of the month. Asked rep why that set a payment minimum this month at $84.00 but really want hundreds? No answer. Have been with AE since the 1980's and I am angry with these tactics. Always thought they were a solid company. Will pay off this account and will NEVER use this card again. Waiting for them to lower credit again like they do to everyone. I hope they go down like some of the others. Rude to boot. I also hope a class action suit starts...need a good lawyer and then count me in.

  • Ju
      16th of Jul, 2009
    0 Votes

    Had the exact same experience with 2 Amex cards. When I took out my American Express Blue Card they offered me a $10, 000.00 limit and I transferred a balance from another card to it which was $4300.00. Never made a purchase on the blue card. I get notified that they lowered my credit limit to $4500.00. Same excuses as all of you. FICO score of 763 which I watch very carefully. No negative reports, no late payments and if you added the balances of all my other cards together it may equal $1000.00. Put in a dispute, sent them copies of my credit reports, FICO score. Got a letter back stating that due to the amount of money I owe out and bla bla bla. So that was a resounding NO. As for my green AMEX, they set a credit limit $500.00. I have never made a late payment to AMEX in all the years I've had them. While all this is happening to my credit, my husband got a letter from Discover, they raised his limit another $1200.00. Imagine that when I pay his card as well as mine. Oh well... Karma

  • Td
      27th of Nov, 2012
    0 Votes

    Same thing here. My credit limit was lowered and I was advised due to low score and delinquent accounts. I obtained the credit report and my score is over 900 and no late accounts. Everything is perfectly fine. I have been calling for weeks and asking for supervisor. I faxed their credit dept my report and was told in review. I keep getting the run around. Thats fine if you need to lower my limit because I do not use the card often but don't tell me for the wrong reason. This is absolutely not acceptable. I hope there is a law suite over this. I especially feel bad for those over their limits that did not get advance notice. Shame on A-mex. This is very bad business practice.

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