Credit Card Center Advertiser Disclosure†
01-22-2009 10:02 AM
03-14-2009 06:03 PM
First post for me. I just had a similar situation as the original poster in that I had an excellent payment history with AMEX and just paid off my balance. In a span of 8 hours, I went from having my full credit line available to having a cancelled account when I logged in to check it again in the morning.
I am a 100% free market capitalism supporter. If you don't like what your card company is doing choose another who gives you a more favorable deal. However, I do have a problem with what AMEX is doing because they have taken $3.5 billion in TARP bailout funds, which were made available to help preserve the liquidity of the credit markets and ultimately the consumer.
Tens of thousands of people have paid taxes into the Treasury, which then allocated that money to AMEX. AMEX has then turned around and cut those same tens of thousands of people off at the knees when they need credit flexibility and liquidity most. As a private company, AMEX is free to set up their cardholder agreements however they choose, but once they went the TARP route, they must be held accountable for the impact their actions have on the taxpayer.
Senator Feinstein has been kind enough to offer me a bit of time to discuss the situation later this month when I am in D.C. If anybody is interested, I am happy to pass along any anecdotes or messages you would like regarding similar issues you have faced with AMEX.
03-15-2009 09:21 AM
I recently had the exact same thing happen to me.
IF you truly have access to some Senator you are more then welcome to pass this along.
I had been an American Express holder since the early 1980's. I have never missed a payment and have never ever carried a balance. My total balance was paid every month.
I recived a letter in March that was dated February 25th, notifing me that AMEX was canceling my card. No, reason, no explanation. I promptly called to find out what was going on and was refered to some credit monitoring agency.
AMEX would not give ANY infomation.
I am still baffled as to why this was done. Now it will most likely cost me some fees or the hiring of a lawyer to find out what the reasoning was behind this since I have no idea who to contact and any of the Government so called consumer help agencies have no place to adress a problem such as this.
I would like you to also ask them if AMEX is getting any of MY/OUR tax money to treat consumers in such a manner.
Feel free to email me if you require any details.
It is American Express, Centurion Bank.
03-15-2009 10:18 AM
Here is my AmEx story. I've had Amex Blue card for about 3 years. Because it had the lowest rate among my other cards I paid only minimum for a while. However, recently I joined myFICO forum and started looking for strategies to boost my FICO scores. I paid off AmEx Blue card in full and requested product change to Blue Cash. After pulling EX hard inquiry and speaking with credit analyst, AmEx was happy to do so. Few days later, I logged in online and realized that my account was cancelled the next day after I paif it in full. Product change was cancelled as well. I even received two letters in succession one stating approval of product change, and the next day one saying that the account is closed.
The reasoning was that during recent account review, AmEx found that I have high utilization rate of available credit (including student loans) and that some of my accounts are delinquent. While yes, high utilization ratio among cards is true, there are NO delinquent accounts on my credit report. In addition, my salary in in top 5% on all Americans, so the amount of debt I carry is very managable.
I found it very distasteful that because of questioned business practices that AmEx employed during bull market years, good customers like me and others on this board and across US have to suffer.
03-15-2009 12:01 PM - edited 03-15-2009 12:06 PM
I just don’t get Amex.
If you carry a balance, that means they’re making money off from YOU. So once you pay them, they get their money. They should be happy, not closing your account.
If they don’t like balances on accounts, they should write letters to the customer requesting to pay it off by XX date or the account would be closed- however, still not a good way to run business but at least it’s a warning to the customer. Overall, I think Amex should just stick to charge cards because they suck as a credit card company, maybe not for everyone but definitely for me.
I think it’s sneaky of Amex to leave an account as open and allow people to carry a balance and they make money off from you, and then once the customer pays it all off, they close your account immediately.
My account was closed because I had recently opened 3 new accounts in the past 6 months and 1 of them was Amex. Go figure. I'm only 22 so of course I need more accounts to build a strong credit portfolio. When I applied for Amex my credit was super clean. I don't have anything negative just 3 new accounts. I guess my paying in full doesn't count or my 70k+ yearly salary. I wouldn't had minded if they did a financial review on me, I would've submitted all documents. But no, they just closed it without warning.
03-15-2009 12:31 PM
This was such a cynical post on your part and in no way shows gladness or good wishes for the poster. In your very second sentence you questioned this persons integrity in regard to being honest if AA does befall him/her.
And how short sighted you are to refer to his/her crystal ball when all of your posts are based on your opinions, and your own crystal ball of gloom and doom and scant little fact. Why are you trying to deprive him/her of their opinion which is based on personal experience, not just opinion.
And why would you or anyone else prefer to highlight the bad news without also celebrating that there are people here doing well and not suffering AA. It is not inappropriate to also post on this thread when one is not affected. It does bring some balance to the subject.
Two months have passed since you posted this, and I, and probably millions of others, have continued to have business as usual
I don't know why AA happens to some and not others but sadly for those who are hurt and angry, I know that there are a lot more who are not affected and even have never heard of AA.
Again, your smarmy reply to this poster was unnecessary and insulting . It insinuates that if we don't chime in with bad news we are not welcome. Should that in fact prove to be the case then so be it.
why are you guys arguing with southernstylin. The day, if it should happen, that he/she too will get hit by AMEX ( I am sure he/she will not tell us if it does happen out of pure embrassment) then they will understand. Just because it has not happen so far does not mean you should go around speaking confidently about "WHY, WHY, WHY not me huh, huh? lol The fact is if you think AMEX has gone through their list of customers and you were pased over, continue to live in la la land. They may have not reach your name yet or maybe it will be the 2nd, third, or fourth go around. This is only the begin my friend and we are not invincible to what is about to come. I am happy for your confidence southernstylin and truly hope nothing happen to you by AMEX but unless you have a crystal ball that truly works and tells the future, I would not be so cocky as to it not happening to you and speaking in the manner you are doing.(P.S. Second wave of mortgage foreclosures are coming - watch out)
03-15-2009 12:34 PM
Now it will most likely cost me some fees or the hiring of a lawyer to find out what the reasoning was behind this since I have no idea who to contact and any of the Government so called consumer help agencies have no place to adress a problem such as this.
To be honest, I don't think they legally require a reason. I don't think they are breaking the law by closing the cards of customers
03-15-2009 02:07 PM
05-18-2010 01:49 PM
The same thing just happened to me. It is apparently because my credit cards are close to being maxed. However they are maxed because each time I pay them down significantly the companies keep lowering the credit limit to $100 above what I've paid down. So it makes me look like a risk even though I am paying down my credit cards.
I have paid them down significantly in the last couple years. It would seem like this is a plus. However I had a Bank of America cust. representative actually explain to me that companies don't really want you to pay your balance down, they want you to make the minimum payment so they can keep charging you interest.
So I pay my credit cards down, I pay on time, but the 'reward' is that they lower my credit limits (meanwhile I always pay on time!) and so I look maxed out. And now Am Ex is cancelling me and raising my interest to 30% even though I've never missed a payment since 05. It's a viscious cycle.
That's ok, my goal is cut them all up anyway, but it really hurt my feelings when Am Ex canceled me because I thought I was a great customer!
05-18-2010 01:53 PM
I forgot to mention in my last post above. Not sure if it was coincidence or just luck, but I finally used my member rewards points after 4 years. Next thing I know my account is canceled.Hmmm....
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.