American Express - Running Scared, Screws Customers

[Anonymous]

Here's another Amex horror story, Amex member since 1980:  I had $75K credit limit spread among 4 Amex cards.  One Amex card had a $30K limit and I had taken a 1.9% balance xfer for $30K which over the years have paid it down so far to $20K.  Another Amex card had $30K with a $25K bal xfer at 3.9%, now down to $20K balance.  Other Amex cards are being paid off monthly.  I received a 2am email this week that the credit limit on the 1.9% card was now reduced $10K, thus leaving it maxed out.  I called Amex, got their Adverse Action rep, who told me my Experian report had delinquencies.  I checked it, there are NONE!, not even ONE 30 day late over 20 years!  I said you screwed up my FICO score because now it will show a MAXed out card, why didn't you pull the $10K credit reduction among all the cards?  She couldn't answer except that FICO scores are not AMEX's problem.  I asked her to reallocate the some of the total avail credit ($20K) to this card, she said our NEW policy says we won't!   You used to be able to reallocate credit limits yourself among all Amex cards online, now you CAN'T!   She said I should pay off my balances before my next review in 3 months, I said WHY should I pay a 1.9% interest rate card when I have the money in 4% savings? Haven't you heard of arbitrage?  She said, well, you know what's going on with the economy.  I said, how come you just pre-approved me for a Gold Amex charge card with no spending limit that has to be paid back in full monthly while you're reducing my credit limit?  Duh???  I asked, why was I just denied an Amex Blue Rewards, why not take some of my avail credit limit so I can have another Amex card just for purchases..... Sorry, NOPE!

F U AX!

I have NO intention of immediately paying off the $40K+ balances because Amex will then cut those limits down as I've been reading all over the web they are doing.

If you have a Costco Amex, write Costco to DUMP Amex!  They will be losing more business if they don't add another charge card.

Where's FICO on these practices?  How do you expect us to FIX 750 scores going south when credit limits are being reduced upon paybacks? 

I guess the American Express Plum Card is now the Prune Card!

Message Edited by BuyGoldNow on 11-02-2008 09:54 AM

Message Edited by BuyGoldNow on 11-02-2008 09:55 AM

Message Edited by BuyGoldNow on 11-02-2008 10:10 AM

Message Edited by BuyGoldNow on 11-02-2008 10:16 AM

[Anonymous]

I feel for you just like I do for my parents.  How on earth is this company allowed to get away with these practices?

Is there anyone listening???????    I just don't understand how one's fico scores can go up with this kind of treatment.  

[Anonymous]

It comes down to the economy and the fact that AM-EX is alot more dependant on short term financing to cover expenses.  This is why they are killing credit limits.  They are especialy doing this with revolving accounts.  That, and having that much in balances on their cards has always been looked down upon by them.  They want you to BT and then pay it off.  Due to the volatility in the short term financing markets, AM-EX is paying alot higher price for the money they are lending you.  So, if they are basically loosing money maintaining thopse 30K in BT balances at 1.9 and 3.9 interest rates due to the higher short term financing rates they are paying, they are going to try to force you out of it.  Although it sucks, it is entirely within their right.  Also, you are lucky that they didn't cut all of your limits.  That has been common as well. 

Either way, it sucks. 

[Anonymous]

True, but why are they still offering 2.9% for 6-12 month for BT's on new credit card apps? 

[Anonymous]

Thanks for the support!  Well, if you're into conspiracy theories, maybe Amex and the other CC co's are in cohoots with FICO.... Lower your FICO score so then you need to buy FICO products and services! (Just kidding, hopefully!)

Message Edited by BuyGoldNow on 11-02-2008 10:47 AM

[laz98]

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@Anonymous wrote:
True, but why are they still offering 2.9% for 6-12 month for BT's on new credit card apps? 

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because not everyone is going to carry such a huge balance, that's why.

[MidnightVoice]

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BuyGoldNow wrote:

Where's FICO on these practices? 

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Nowhere - they just provide a risk model for other companies to use as they see fit.  And in the case of AmEx, it is only a part of the internal risk model they use to make decisions.

Like all risk models, they are statistically based. which means there will always be outliers - people who are get the shaft when they don't deserve it, and people who get well treated when they should be closed down!

[Anonymous]

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@laz98 wrote:

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@Anonymous wrote:
True, but why are they still offering 2.9% for 6-12 month for BT's on new credit card apps? 

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because not everyone is going to carry such a huge balance, that's why.

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A current $40K balance, is not HUGE!  Depends on your vantage point.  They have plenty of small business customers with much more credit and balances who they are screwing even more. 

Plus, I built up the $75K credit limit over 20 years, I wasn't just given it recently.  They must have liked the way I managed the debt, they kept increasing the limits and offering 1.9% $30K balance xfers even when I had $240K debt on a $300K HELOC.  Now that has been paid off over 2 years and then they offered $30K BT at 3.9%.   I was thinking of paying that down BEFORE this event, now I will not.  They will just cut more off the credit limit.  

7000 layoffs is just the beginning...  It shouldn't be my problem that Amex is mismanaged. 

NO GOV'T BAILOUT FOR AMERICAN EXPRESS!

Message Edited by BuyGoldNow on 11-02-2008 11:57 AM

[MidnightVoice]

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BuyGoldNow wrote:

It shouldn't be my problem that Amex is mismanaged. 

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It isn't - just pay off the debts and open some new cards    Finder a kinder company to loan you money!

[laz98]

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@Anonymous wrote:

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@laz98 wrote:

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@Anonymous wrote:
True, but why are they still offering 2.9% for 6-12 month for BT's on new credit card apps? 

---

because not everyone is going to carry such a huge balance, that's why.

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A current $40K balance, is not HUGE!  Depends on your vantage point.  They have plenty of small business customers with much more credit and balances who they are screwing even more. 

Plus, I built up the $75K credit limit over 20 years, I wasn't just given it recently.  They must have liked the way I managed the debt, they kept increasing the limits and offering 1.9% $30K balance xfers even when I had $240K debt on a $300K HELOC.  Now that has been paid off over 2 years and then they offered $30K BT at 3.9%.   I was thinking of paying that down BEFORE this event, now I will not.  They will just cut more off the credit limit.  

7000 layoffs is just the beginning...  It shouldn't be my problem that Amex is mismanaged. 

NO GOV'T BAILOUT FOR AMERICAN EXPRESS!

Message Edited by BuyGoldNow on 11-02-2008 11:57 AM

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i didn't say you deserved what they did to you, i'm just saying that, from what i have read on here, amex really hates when people carry balances.  with the economy the way it is, what would normally not seem like a big balance now does.  i agree that it is not your problem that amex is mismanaged.  from their perspective, though, it is not their problem if your credit is affected (which i believe you said they actually told you...i probably would have reached through the phone & choked the other person!)