Bye Bye, American Express

[henni]

Originally Posted By: JLTD
I had to carry a balance on it for a couple of months, to a total of about $6000.


The first appropriate action would have been YOU contacting them proactively, explain what you were about to do and why.

Just like with humans, communication ahead speaks volumes.

Originally Posted By: JLTD

Then, while on a business trip I charged an $800 hotel bill and minutes later received an email from AX.


Again, you could have preemptively spoken with Customer Service/Authorizations and having explained the situation ahead, all this could have been avoided.

Also, you have the option to logon to your account and to set your communications preferences (email, text, phone, mail). You could even CHAT online from any device and they would place a note on account.

Originally Posted By: JLTD

In this email, they advised me that my limit had been reduced to $6800 since I was using too much of my available credit.


As explained by others already, *Your Limit* is not what you think. It is *not your Amex limit*. The limit you have is your total exposure across all instruments you use (cell providers, utilities, mortgage, loans, all other credit cards).

 

[Lolvoguy]

Originally Posted By: JLTD
Originally Posted By: Astro14
Interesting.

Totally different experience with AMEX.

Had the card for a while. Several unusual expenditures, and ran the balance up. Paying it down now.

They never said a word and, in fact, they even upped my limit.

When I got very close to the limit, there was no communication, no change, other than to INCREASE my limit.

Perhaps because my income level is different? Perhaps because I paid far more than the minimum every month?



Wow completely different experience for sure. Curious if you received a phone call or anything when they raised the limit?


Yup, Amex Gold is my primary CC. I only use my MC when some vendors do not accept Amex here in Canada.

Also, never paid the min balance and have been pestered that I've been pre-approved for a limit increase (I never put more than $1,500 at any given time on it). Currently at 12k, but they want to increase it to $16600. I see no need for this.

I pay an annual yearly fee of $99, but yearly I collect about $600-$700 worth of gift cards I use for various purchases.
Best CC I've owned yet

 

[CT8]

Originally Posted By: Mr Nice
Originally Posted By: Wolf359
Always have multiple cards. In a way I don't blame them. Lots of people charge their cards up to the max and then default. You might have been following that pattern. Maybe if you had charged up the max and paid it off at the end of the month, they wouldn't have cut your credit limit. But you were building a balance and they were worried you wouldn't be able to pay it off. People lie all the time about their current situation and it's hard for them to verify the information that nothing had really changed at your end. Could have been a divorce starting up, sickness, gambling problem/drinking/drug problem starting, job loss etc.

Also with just one card, what were you going to do if you lost it?


Yep. Long time ago a couple I knew were about to get divorced. The wife ran up the credit cards , even got breast implants.

About $30K in credit card debt, then they declared bankruptcy.
When a woman gets implants they are never for the person that pays for them !

 

[Sierra048]

Originally Posted By: Sam_Julier
I've had an American Express Card since 1989. During my salesman years I would charge $5-9,000/month. I have never had a single problem with the card. The few times I put a charge in dispute they resolved it immediately. The card number was stolen while traveling in Europe. They contacted me within moments after the first fraudulent purchase was made, assured me I was not going to be charged, and had a replacement card delivered to the hotel the next day. AMEX service service has been exceptional in all regards.

Sam



Agree 100%. I've been a AMEX Platinum card holder for twenty years and have had nothing but oustanding service from them, for the same reasons Sam above expressed. I'm sorry this happened to OP. Was it right? Or fair? I have no way of knowing. No company is perfect and if cancelling his card with AMEX will make him feel better then by all means, he should do it.

I have $15,000 limit as well. Usually carry between $1800 - $2500 monthly, depending on bills and needs for that month. It's paid off every billing cycle. Back in 2015, my mom passed away out of state. I knew my dad had the assets to cover her expenses but didn't know how liquid they were at that moment. I decided to cover the expenses of getting her back home, and funeral expenses, on my AMEX until I could get access to his financials. I was just a few hundred dollars short of my $15k limit and I never heard a word from them. I still get correspondence from them occassionally asking me if I would like to increase my limit. I don't because I don't want to.

 

[pandus13]

JLTD,

If you used any airline in your travels, you can apply for their credit card. try to synchronize with a promotional offer (extra miles).
Do you have a Costco or any store you use at regular times? Apply for one of those.

And I still agree you should have not close the account but just let it sleep.

Yet I did close my first card because of membership fees and not wanting to increase the limit (I already had a good credit score and could demonstrate cash liquidity and other better cards)

Also another problem about cash liquidity: The credit cards from banks they are separate departments so they don't communicate with the actual bank anymore and they actually discourage any recommendations from bank employees.

 

[Huie83]

This post is all too familiar. When I moved into my new home I charged some appliances/furniture on my amex to carry for a few months as moving into my first home was expensive. I carried around a 40% of my 11K limit for a few months and they actually deactivated my card and support said they wouldn't reactivate it until I paid it down and reapplied for a new card. What?

I paid it off and never called back to reactivate it... The way they handle business is just weird. It's like they approve you higher limits then they actually want you to have to bring you in and then cancel your card if you use it.

 

[bubbatime]

I would be angry as well. You expect your $15000 credit card to be there for you when you travel. And then have them turn off your credit card, when you are traveling, and need it most, is terrible. I would absolutely cancel that account as well if some company did that to me. This is a good reminder to carry several credit cards with you while you travel to make sure you have access to money.

 

[JLTD]

Originally Posted By: henni
Originally Posted By: JLTD
I had to carry a balance on it for a couple of months, to a total of about $6000.


The first appropriate action would have been YOU contacting them proactively, explain what you were about to do and why.

Just like with humans, communication ahead speaks volumes.


Done. They already knew I traveled for work and charged hotels.

Originally Posted By: henni

Originally Posted By: JLTD

Then, while on a business trip I charged an $800 hotel bill and minutes later received an email from AX.


Again, you could have preemptively spoken with Customer Service/Authorizations and having explained the situation ahead, all this could have been avoided.

Also, you have the option to logon to your account and to set your communications preferences (email, text, phone, mail). You could even CHAT online from any device and they would place a note on account.


I know all this.
As mentioned above, they knew my situation and it hadn't varied from what I told them. They had my email and cell phone numbers available.


Originally Posted By: henni

Originally Posted By: JLTD

In this email, they advised me that my limit had been reduced to $6800 since I was using too much of my available credit.


As explained by others already, *Your Limit* is not what you think. It is *not your Amex limit*. The limit you have is your total exposure across all instruments you use (cell providers, utilities, mortgage, loans, all other credit cards).



Pardon me, but when I am vetted by a banking organization in order to open a line of credit, and they approve that line of credit after checking my income and other financial obligations, I expect it to BE that line of credit. NOT a floating number that depends on some computer calculation. As I've said previously in the thread, perhaps you missed it, the only thing that changed was the amount carried on the AX.

After some thought I did understand their reasoning, and was considering keeping the card until I was subjected to the horrendous customer service experience. When you get down to it, most cards are pretty much the same. Sure there are benefits and rewards differences but it comes down to customer service. WE choose THEM for their cards, not the other way around. They are in the service business. If their service isn't there, I vote with my feet and take my business elsewhere.

edit:
Originally Posted By: bubbatime
I would be angry as well. You expect your $15000 credit card to be there for you when you travel. And then have them turn off your credit card, when you are traveling, and need it most, is terrible. I would absolutely cancel that account as well if some company did that to me. This is a good reminder to carry several credit cards with you while you travel to make sure you have access to money.


My points exactly. Thank you.

 

[Imp4]

Originally Posted By: JLTD
The other thing is "Pay money and we'll restore the arbitrary credit limit we just told you you don't qualify for any more" hypocrisy.

This is not hypocrisy. It is risk mitigation.
Based on your charging patterns and account history.
Updated by AMEX based on new information that was not available at the time the account was opened.

This is big data analysis in action.
This is the new world of service the customer but also mitigate risk, even if it damages the customer relationship.

They determined that it was less of a risk of losing you as a customer than it was to extend you $15k unsecured.

In aggregate, they're probably better off even if you leave, because while most will pay, it only takes one or two no paying customers to make them unprofitable.

The takeaway here is that they hedged you as a risk and subsequently lost you as a customer. And they are completely OK with that.

 

[slo town]

When I was still working, and making exceptionally good money, I had a personal AMEX Platinum card. I used it alot but paid off the balance every month. On a whim, I decided to buy a BMW that exceeded the credit limit on my AMEX card. I called them and they quickly agreed to temporarily increase my limit. I bought the car and paid off the entire balance over the next 2 or 3 months.

AMEX has a different set of rules than other types of credit cards. I do think they know alot more about your overall financial situation than other credit card companies do.

Scott

 

[Garak]

Originally Posted By: Johnny2Bad
Current versions of the AMEX card are more like VISA, etc in that they are interested in earning interest. However, the company DNA doesn't change much; they are very much a card that monitors your credit on a continuous basis. Maintaining an AMEX card over a long period of time carries more weight with lenders than other cards.

That probably does hit the nail on the head. I have an AMEX, but didn't have one back in the "old days." I never get anywhere near the credit limit and never carry a balance, so really haven't found out how they react to that sort of thing.

JLTD: I have the blue and white cash back Canadian version. Despite the very reasonable explanations given in the thread as to how they operate in comparison to other companies, I'd share your frustration if I was in the same boat.

 

[oilpsi2high]

The business I work for uses AMEX and they pull this [censored] all the time. I wish they would be on a cash-only basis, but that's a topic for another discussion.

Your best bet is probably a credit card from a local credit union. Much lower APR than AMEX and they are less likely to randomly decrease your credit limit when you need it the most.

 

[JLTD]

Originally Posted By: Imp4

This is not hypocrisy. It is risk mitigation.
Based on your charging patterns and account history.
Updated by AMEX based on new information that was not available at the time the account was opened.

This is big data analysis in action.
This is the new world of service the customer but also mitigate risk, even if it damages the customer relationship.

They determined that it was less of a risk of losing you as a customer than it was to extend you $15k unsecured.

In aggregate, they're probably better off even if you leave, because while most will pay, it only takes one or two no paying customers to make them unprofitable.

The takeaway here is that they hedged you as a risk and subsequently lost you as a customer.


Depends on your point of view, doesn't it. I must have been at or near some threshold for them...no matter, they're in my rear view.


Originally Posted By: Imp4

And they are completely OK with that.


As am I. Win-win.

 

[fdcg27]

If a card issuer gives you a 15K credit limit, which is really pretty modest, then that should mean that you have a 15K credit limit.
If the issuer really intended to give you a 6.8K credit limit, then that should have been what you were originally told, not the illusory 15K.
This was once the premier card for anyone who traveled much.
That appears no longer to be the case.
You've helped me to decide whether I want to start paying for one of these again or not.
Fat chance.