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Amex lowered my CL for no reason !!!


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WOW !!!!!! Unbelievable !! I have a Amex Delta, Jet Blue and Gold CC....I got two letters today from AMEX telling me that they had lowered my Delta and Jet Blue CL's... They went from $30,000 CL's to what I owe on them now...like around $2,500 on each of them. I called and the lady I spoke with said it was because they had reviewed my CR and I had a collection on my CR....DUH !! That collection was there last year when they approved me for the CC's ......How could thi happen and why ? I asked the lady if I could speak to a supervisor and she said " I am as high as you can get !" I asked her if she was the president of Amex and she said no but anyone above me will tell you the exact same thing I am telling you....What should I do ? any help is appreciated :)

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I am so sorry! This is going to tank your score. If it were me, I'd file proof of this w/ all the local agencies and file my formal complaints. BBB, FTC, Consumer affairs and Attorney General. I could understand it perhaps if you were consistently charging too close to your CL or whatever...but under the circumstances you described, NO WAY!

Elyse

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There was a post about this recently. It is happening quite often. I would try to appeal with them since the collection was already there. They are probably skiddish that you might not pay with a NEW collection appearing, but since it isn't new, maybe they will reconsider.

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What they did was totally legal.

You all were warned in this thread that this was going to happen. Now you act surprised. No one would listen. "Amex is givin me love!" and "I love Amex." then there was "You guys that are warning us about FR are just jealous!"

I think your totally wrong and very ignorant to the sitaution. Not to be rude or anything.... The post didn't say he/she was in FR. AMEX decided to lower the limits because they obviously saw the potential for risk. We all know this is legal, there's no need to point that out to us... Is it being overly cautious and unfair, ABSOLUTELY....

And the "you were all warned, now you act suprised" bit was very ill-mannered if I must say. Instead of sounding like a 5 year old yelling "I told you so, i told you so" I think its time to take the adult road and stop being so negative and say something positive, or at least intelligent....

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I think your totally wrong and very ignorant to her sitaution. Not to be rude or anything.... Her post didn't say she was in FR. AMEX decided to lower her limits because they obviously saw the potential for risk. We all know this is legal, there's no need to point that out to us... Is it being overly cautious and unfair, ABSOLUTELY....

And the "you were all warned, now you act suprised" bit was very ill-mannered if I must say. Instead of sounding like a 5 year old yelling "I told you so, i told you so" I think its time to take the adult road and stop being so negative and say something positive, or at least intelligent....

I'm going to try and take the fact that you only have 26 posts into consideration here, even though you have been a member for over 2 years. First of all you don't get much more intelligent posts than that of Dive's. I think before you jump to your harsh conclusions then maybe you should have bothered to read through the post he linked. No offense to tmac, but he was right there in the thick of the AmEx "love fest". Warnings were posted numerous times, but scoffed at. The article about this happening was posted not only in the Credit Article of the Week section but also in this section. There have been numerous posts just since the massive I Love AmEx thread talking about drops in CL and probably just as many posted before.

Maybe you should try to keep your ignorant criticisms to yourself unless you have all the facts.

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The problem here is that I spend HOURS on this site every week giving advice, only to have that advice ignored, and then have the person come back wanting even more advice after the situation ends up EXACTLY like I told them it would.

I know you only have 26 posts, but you joined the board at the same time I did, so you know- I have given advice to people THOUSANDS of times here. Helpful advice. Only to see that advice ignored time and time again.

Amex, as I have pointed out before, does this on a regular basis. Deal with them at your own risk.

Since you said this in another thread:

My fiancee has gotten 4 AMEX cards with a combined Credit Line of 43,000...

I think I know why you are so upset. Want some "intelligent" advice? Don't let Amex be the largest part of your CC portfolio, or you will get screwed, too.

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Well granted I don't post much, but I have been reading these boards for years, and I hate it when people make the situation worse. I am proud to say that my wife and I love AMEX and we have been watching our credit lines very carefully...low utilization and accurate, verifiable stated income. Total now on 4 cards is 72,000...

Again not to be rude, but it saddens to me to see AMEX doing this to people who don't deserve it.. A very good friend of mine had this happen to him and nearly destroyed him financially...Granted everyone is taking a risk when they seek and obtain credit... I don't think its the amount of credit lines that matters, rather the way you live your life and manage your finances.....

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Dive I respect you very much but speaking for myself I have not had a late in over 7 years. The one collection is a dental bill of $135 that was sent to collections only after it was paid by my insurance then dropped and sent back to my dentist. He then in turn never even attempted to contact me and sent it straight to collections. So for someone with my credit who is very good with paying on time and very responsible as my CR shows Amex had a legal right to do this but not a moral one. I respect you Dive and we have even pm'd back and forth so thank you for your response and your past help but I respecfully disagree with you on that the fact that I was hitting the love button as a means of just having a High CL. What kills me is that my CR is going to drop tremendously and I am asking for advice on what to do or who to turn to. Now you can help me with this Dive-M...:) I looked up all the CEO's but they do not give their email addresses. I thought about emailing them about my issue. Does anyone have a better idea for me ? I never judge on this forum and if I can help I always will :) Thanks !!

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One more thing !! My sister has been an Amex customer for over 25 yrs with a personal and corporate CC. I mean she had a Corporate CC with a CL of over $100,000 ! Recently she paid her home taxes with her Amex personal CC and they told her this was against the law and dropped her and her corporate CC. That was it, 25 yrs of perfect credit period and they dropped her. The funny thing is that Amex told her to pay her property taxes with her Amex CC and so she did. When I called Amex they even have a recording about paying your property taxes with their CC.....Sorry but Amex is not right !! What they are doing is unmoral and unethical. I planned to report them to everyone I can. Regardless of what it does I still feel it needs to be done. ;)

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Is it unethical? Yes

Mean spirited? yes

Legally, there isn't much you can do. Practically, you can try to call customer service and get them to change their mind. Read my thread on universal default. It happened to me with Citi. Luckily, all of my eggs were not in one basket.

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I have been on both side, i have been fr'ed by amex and all was ok, 30k in cl.

took 4 weeks

I aslo had cl lowerd by 2 chase cards on the same day, same thing said to me a collection show up during a reveiw.

I got a person on the phone and explain that the co was there before an they agreed and put back the cl ,

amex is really hitting hard because of the credit, mortgage thing ,

i would call again to see if you can get a different person.

my .02 $

thx

sam

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Thanks to all for your advice...One thing I did do was speak to my friends at Penfed and they recommended one of their 5.99 % transfer Balance CC's. It just made sense to transfer the Amex CC's with higher Balances along with a few other CC's that I could pay off. They approved me for a $20,000 CL. I told them exactly what I wanted the card for and its pretty hard to beat 5.99 %. Dive -Med can you direct me to your artical ? Samba so you think by calling another Rep they just might give me the CL back ? I was thinking about climbing the ladder for that but I need to find my Amex resource contact email addresses......I'll keep you guys posted and thank you ver:) y much

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Thanks to all for your advice...One thing I did do was speak to my friends at Penfed and they recommended one of their 5.99 % transfer Balance CC's. It just made sense to transfer the Amex CC's with higher Balances along with a few other CC's that I could pay off. They approved me for a $20,000 CL. I told them exactly what I wanted the card for and its pretty hard to beat 5.99 %. Dive -Med can you direct me to your artical ? Samba so you think by calling another Rep they just might give me the CL back ? I was thinking about climbing the ladder for that but I need to find my Amex resource contact email addresses......I'll keep you guys posted and thank you ver:) y much

Got Penfed and you're worried about AMEX? They did it once they'll do it again. Citi treats its customers better than AMEX. I wouldn't let them pull that if I had other good options.

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Thanks to all for your advice...One thing I did do was speak to my friends at Penfed and they recommended one of their 5.99 % transfer Balance CC's. It just made sense to transfer the Amex CC's with higher Balances along with a few other CC's that I could pay off. They approved me for a $20,000 CL. I told them exactly what I wanted the card for and its pretty hard to beat 5.99 %.
National City just handed me a card with 0% balance transfers for 6 months ($5k limit). My credit is decent but not that good due to BK in 2004. You may want to give them a shot- better than paying 5.99%.
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...DO NOT SEEK HIGH CREDIT LIMITS. Honestly, I think it makes us prime targets. I agree w/ not allowing AMEX to hold the majority of your credit portfolio in their hands, but also--do not continually seek CLI's. JMHO. I think it makes a consumer look as though they're up to something.

In tmac's case though honestly, I can't see the justification--sorry. I know it was in their legal right to do this at any time that they wished, but I am failing to see what warranted it. Maybe it's just a general issue at Amex now due to our economy. Either way, keep those balances w/ AMEX low and if it were me, I wouldn't request CLI's too often.

A long while back I once heard that having TOO much credit available is also a baddie...not a techincal baddie, but when a creditor does a permissable purpose check to your credit and they see all this available credit, they worry. That's what I've heard anyway.

Also, I think if you're still earning what you were when you were originally approved for that credit line than a person may want to consider not requesting a CLI. OTOH-if you are NOW earning MORE, that's different. But from a creditors point of view, they gotta be sure you can pay it IF you ever did charge it to the limit. Again-don't feel this was the issue for tmac.

Elyse

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Maybe it's just a general issue at Amex now due to our economy.
Bingo. A lot of finance companies are deleveraging and tightening up. Potential bondholders are turning their noses up at corporate debt (which is how they fund our credit card balances). So they have to be a) pickier and B) give less credit out.

I think we've all gotten used to the cheap and easy money of the past five years. CL decreases are part of the pain of the industry tightening back up again- which in the long run is healthy. That really sucks tmac. I think the best plan is the one you've chosen- transfer and pay it off.

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Bingo. A lot of finance companies are deleveraging and tightening up. Potential bondholders are turning their noses up at corporate debt (which is how they fund our credit card balances). So they have to be a) pickier and B) give less credit out.

I think we've all gotten used to the cheap and easy money of the past five years. CL decreases are part of the pain of the industry tightening back up again- which in the long run is healthy. That really sucks tmac. I think the best plan is the one you've chosen- transfer and pay it off.

I agree! This is a good lesson for us all though, honestly. Beware of the CLI, keep balances LOW, LOW, LOW until this all blows over. Otherwise, if you've charged enough and they lower it to where you've charged, there goes your utilization. It's the lesser of two evils I guess.

Elyse

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The good thing is that the Penfed CC is for 5.99% until you pay it out not just for 6 months. Elyse thats exactly my point as Amex just lowered my CL and it is killing my CR score...UGHHHHHH :evil: I have never had more than $2,500 on each Amex CC and I always paid on time and either paid off the balance or paid early. Honestly there excuse just plain sucked !! Maybe I need to just calm down but honestly I want to at least put up what fight I can with Amex and at least get to their CEO's and email them about how unethical this is not just to me but to my sister as well. I want to report them to the BBB the Att.General you name it !! I am not one to fill up a CC to its limits until now thanks to Amex :evil: Thank you all once again !!

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Bingo. A lot of finance companies are deleveraging and tightening up. Potential bondholders are turning their noses up at corporate debt (which is how they fund our credit card balances). So they have to be a) pickier and B) give less credit out.

I think we've all gotten used to the cheap and easy money of the past five years. CL decreases are part of the pain of the industry tightening back up again- which in the long run is healthy. That really sucks tmac. I think the best plan is the one you've chosen- transfer and pay it off.

Still lots of available credit out there. AMEX is wacky. They are doing things backasswards. They need to qualify first then approve. If they're not comfortable with credit limit increases then don't make it so easy to get.

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The good thing is that the Penfed CC is for 5.99% until you pay it out not just for 6 months. Elyse thats exactly my point as Amex just lowered my CL and it is killing my CR score...UGHHHHHH :evil: I have never had more than $2,500 on each Amex CC and I always paid on time and either paid off the balance or paid early. Honestly there excuse just plain sucked !! Maybe I need to just calm down but honestly I want to at least put up what fight I can with Amex and at least get to their CEO's and email them about how unethical this is not just to me but to my sister as well. I want to report them to the BBB the Att.General you name it !! I am not one to fill up a CC to its limits until now thanks to Amex :evil: Thank you all once again !!

Please keep us posted. It'd be nice if we could figure out what sort of things AMEX looks for when they're considering doing this to one of their card users. :(

Elyse

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