@longtimelurker wrote:
@Anonymous wrote:Ouch! that sucks. Sorry to hear about that. I'm a little irked at Amex myself since they denied me my 3x CLI after having the card for a month, but I guess based on what they did to you it may not be such a bad thing. I would say that your best bet is to apply for a new credit card. I would suggest the Venture Card since with your scores (depending on your income and other reporting items) you can usually get a limit of around 10-15k, or since you have a balance the Chase Slate with 0% interest for 15 months would probably also be beneficial. As for working with Amex I think going through their verification process might be the only way....unless your willing to shell out 5k all at once.
Getting a new card certainly won't help OP with Amex (and potentially make it worse). While it might help global util, it sounds like the card is maxed out at the new lower limit and that will hurt.
I believe you are correct in stating that OP is maxed on this card. The reason I said a good idea would be to apply for a new card is to increase his utilization across all of his cards. By applying for a Chase Slate w/ no balance transfer fee, or another card w/ 0% APR he could use the other card via balance transfer to meet the 5250 payment requirement by Amex. At worst (if approved for a new card) it will reduce his global utilization, at best he will get back both his old credit limit AND have a new card to spend on vacation.
I have a credit union card that has really crazy terms that would be perfect for situations like this. They don't charge a fee for cash advances and my rate for cash advances is the same as my purchases rate (9.5%). I would just get a cash advance and pay off the $5,250. 
I'll take my interest elsewhere amex!
They did the exact same thing to me a few weeks back, just with less money. I was carrying a balance of around $525 on my Gold Delta & they decreased my limit from $3500 to $1000. They told me if I paid $400 they'd restore it. I paid in full & they restored the original limit. I'm still a little irritated about it but I'm sure it's buried in the terms & conditions that they can do this. It just seems like shady business practices to extend a limit, offer the ability to pay over time & then decrease that limit when peope use it, even when they make payments on time.
Starting Score (02/01/2014): EQ 548 EX 548 TU 564
@joeyoey wrote:They did the exact same thing to me a few weeks back, just with less money. I was carrying a balance of around $525 on my Gold Delta & they decreased my limit from $3500 to $1000. They told me if I paid $400 they'd restore it. I paid in full & they restored the original limit. I'm still a little irritated about it but I'm sure it's buried in the terms & conditions that they can do this. It just seems like shady business practices to extend a limit, offer the ability to pay over time & then decrease that limit when peope use it, even when they make payments on time.
Everyone always says "its their money they can do what they want" to a certain degree that is true however there is such a thing as false inducement/enticement and/or false advertising. To me such offers are in fact "blackmail" and I would be filing a complaint with the CFPB on it also I would be canceling all business with such a lender. For the record I am against AMEX and would never hold another card as long as I live....
I do understand his issue with Amex and credit card companies in general. Why give him that high a CL if they are going to have a problem with him using it. He has shown he can pay. Until he proves he cant, leave it alone. It isnt a fraudulent charge. Their very action (reducing his limit) is affecting his credit in a negative way. I would undertand if it was due to a negative on his report but in this case no.
What irritated me was that there was zero warning ahead of time, zip, nada. I just woke up one morning with an email that had the subject line "Your New Limit". What if I was out of town or traveling or something and took this card with me & left other cards behind because I trusted AMEX? They've cut off my funds & left me stranded for no reason whatsoever except they "think" I'm a risk.
Sure, it's their perogative to cut my limit & it's my perogaive to take my business elsewhere & warn others against using them. I haven't yet because in addition to the gold I have a BCP that I love the cash back, but I've been seriously thinking of doing it and at this point I'm no longer using the gold, just the blue. Loyalty is important to me & when I pay 100% on time, pay early, pay often, & pay more than their minimum (& not use anywhere close to my limit) & they cut my limit, they're not showing it.
@kdm31091 wrote:
The thing that people overlook is that credit is not our property. Its the lender's money. We do not own or have a right to the cards. We own the debt.
Does it suck when stuff like this happens despite no negatives on the report etc? Sure. But we are not entitled to anything. Its not false advertising. They allow balances to be carried, but if they deem you risky, this is what happens. Sometimes it seems extreme and maybe unfair, but they have a right to monitor activity. Considering the amount of Americans that are in debt up to their eyeballs, I dont blame issuers for being perhaps a bit paranoid.
I hear you. But if they are so paranoid, dont CLI him to 24k. You know?
@Pigeyex wrote:After successfully getting the standard 3x CLI -- twice -- from AmEx, and getting my CL on my Blue Everyday card up to $24,000, I've now received an email from them saying they have decreased my CL to just $10,700!
They also recently cut my "Pay Over Time" limit on my Green card.
My utilization has gone up rather significantly recently, with some large family expenses related to a funeral and a wedding, from my usual 10-15% to just over 50%, but I have never missed -- or even been late on -- a payment! No to Amex on either of my two cards, not to ANY other vendor on my credit reports for over 43 months now.
I called customer service to ask for reconsideration (they have left me with only $171 in available credit! I can't even book a hotel room for two nights for my family to take a vacation next month!), and they gave me two options:
1. Make a payment on my account of $5,250 by 9/15/2015 and they will restore my previous CL; or
2. Send in some requested documents (which they are going to email me -- apparently verfication of income, assets, etc.).
This just seems like BLACKMAIL to me. What's the point of having a high CL if you can't occasionally USE it! My score when they approved me to the $24k CL was probably about 705; it is now 692 (and it's going to take a bigger hit when this significantly lower CL affects my overall credit util). I know that Amex periodically reviews their accounts and makes adjustments, but this just doesn't seem right.
Any advice?
Paul
Im sorry. op. this is happening to you. But this is why Utilization is such a big part of Fico. its perceived Risk. Although you are a model customer. Not only Amex. but other lenders will do it as well. This is why i luv Myfico community. By having that Diversity in my overall Credit./ i could give a damn what Amex does at this point. for my however if i was using 50%. yikes i would be about 60k in credit card debt., and they should jump out. as i would be considering to blow them off. 
@joeyoey wrote:What irritated me was that there was zero warning ahead of time, zip, nada. I just woke up one morning with an email that had the subject line "Your New Limit". What if I was out of town or traveling or something and took this card with me & left other cards behind because I trusted AMEX? They've cut off my funds & left me stranded for no reason whatsoever except they "think" I'm a risk.
Sure, it's their perogative to cut my limit & it's my perogaive to take my business elsewhere & warn others against using them. I haven't yet because in addition to the gold I have a BCP that I love the cash back, but I've been seriously thinking of doing it and at this point I'm no longer using the gold, just the blue. Loyalty is important to me & when I pay 100% on time, pay early, pay often, & pay more than their minimum (& not use anywhere close to my limit) & they cut my limit, they're not showing it.
Keep in mind that the decision to cut your credit limit was probably made by a computer algorithm and not a human being. I would be frustrated to but I woudlnt take it personally.
