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Moderator Emerita
LilMirth
Posts: 3,091
Registered: ‎08-09-2008

Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

BGN, Not paying down your balance isn't going to keep Amex from taking AA against your account(s). And, having a maxed out card can have a negative impact on your FICO score, which could trigger other lenders to get nervous and take pre-emptive AA against you. Not to mention, as others have already pointed out, you'll end up paying much more money over the long haul. I'd go so far as to say that this is going to make you look even more risky to Amex, and you'll run the risk of them closing your account and demanding payment in full.

 

It is unfortunate that Amex has decided to treat their customers so poorly-- suggesting that it's their credit profiles, when it's Amex's own financial standing. That's just plain bad business, and a poorly planned move that just may prove, down the line, to be Amex's undoing as the Uber Prime card issuer. But, in my opinion, the best 'revenge' is to fire them. Or SD them. Pay them off, then decline to let them profit from your continued use. 

 

Your frustration is palpable, but I seriously doubt that some type of boycott will have the desired consequences, for Amex, that you're hoping for. The point of chasing your balance is to keep you from running up more debt as you pay down the debt that you already have. The don't want you to use your card. They only want you to pay. They either want your account down to a minimal limit (say $500) or closed entirely. People who already have balances are paying interest to Amex. I'm pretty sure that they'd be willing to forfeit the transaction charges for a few days, weeks, or even months, considering that they're still getting paid, and reducing the liability on their books by lowering your credit line as you pay. They're already willing to lose your business.

 


BuyGoldNow wrote:

ATTN FELLOW AMEX VICTIMS & FUTURE FICO FAILURES: 

DO NOT FULLY PAY DOWN YOUR AMEX CC BALS (if you have low APR balances).  YOU WILL LOSE THE CL AS YOU GO. 

PAY ONLY THE MINIMUM + FINANCE CHARGE SO YOU PAY DOWN PRINCIPAL.

AMEX IS GOING DOWN FURTHER, THEY HAVE AND WILL CONTINUE LYING ABOUT YOUR CLDs.


YOU HAVE BEEN ALERTED!!!! 


SUPPORT BOYCOTT AMEX DAY (or week) (date to be decided, let's pick one)

 

AXP 19.43, +0.53, +2.8%) and its subsidiaries had their long-term ratings lowered to A from A+, and A-1 short-term ratings affirmed, by Standard & Poor's. The outlook is negative. "The actions reflect our concerns about the weakening operating environment for consumer lenders, deterioration in Amex's credit-card loan portfolio and Amex's wholesale funding concentration," said John Bartko, an S&P credit analyst, in a statement.

 

http://www.marketwatch.com/news/story/sp-cuts-american-express-long-term/story.aspx?guid=%7B58A42DA4...

Message Edited by BuyGoldNow on 12-20-2008 09:51 AM
Message Edited by BuyGoldNow on 12-20-2008 09:55 AM

 

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Established Member
BuyGoldNow
Posts: 28
Registered: ‎11-02-2008
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Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

As I predicted here, the more you pay down the more Amex CLDs.

 

Amex just sent me 2 emails, CLD-ing more!  One card they reduced $900 to the bal of $23K, another $3K to the balance of $2K.

 

I've paid more, paid off car loan, paid off other CCs and Amex is on the warpath.  How desperate is Amex to reduce a $24K card to $23K???  Truly PATHETIC!

 

Amex got TARP, what else do they want, BLOOD?!

 

Drop dead Amex, you're LIARS, hope your stock keeps dropping.  Don't tell me my credit report sucks when BOA is offering me credit cards TODAY!

 

And I will continue to pay minimum on my VERY LOW BAL 1.9, 3.9 xfers, along with NOT USING your crappy Costco card, which I w/cancel after the Feb rebate.

 

AMEX, LEAVE YOUR CARDS AT HOME!

 

 

Moderator Emerita
LilMirth
Posts: 3,091
Registered: ‎08-09-2008

Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

[ Edited ]

It's called "chasing your balance", and it's a common practice when lenders want your current debt paid, no more debt incurred, and possibly to push you out the door. They'll continue to chase your balance down to some nominal amount (possibly $500) or (more likely) to zero, then close your account. Hopefully, Amex will not close on you before the debt is paid.

 

Please, just be aware that as you stay maxed out, and making minimal payments to Amex, you're at much greater risk of AA from Amex (believe it or not, they can do worse than they're doing now) and other lenders. Nobody is immune to the financial sector jumpiness due to the economy. Amex is desperate, but that's old news, now. They're making very deep cuts to survive, and those cuts also involve getting the liabilities off their books, and reducing their exposure. It's not pretty. They don't want blood, they want the debt paid yesterday.

 

If BoA is offering you better credit lines and terms than what you've got going with Amex, why don't you BT to BoA, and have done with Amex? Just note that BoA has tightened up as well. Pre-approved offers are not guaranteed offers of credit. Carrying large balances on maxed out cards that you're making minimum payments on is going to make even the most lax lender think twice in these times. Perhaps a credit union would offer you better terms, and comparable lines of credit that would make the loss of Amex less biting for you? It's a thought, anyway.

 

No matter what, I think that from a financial and FICO standpoint, you'll be better off getting your Amex balances PIFd, as soon as you possibly can. The potential harm of further adverse action for you is greater than the aggravation level that you could possibly inflict on them by continuing to let it linger.


BuyGoldNow wrote:

As I predicted here, the more you pay down the more Amex CLDs.

 

Amex just sent me 2 emails, CLD-ing more!  One card they reduced $900 to the bal of $23K, another $3K to the balance of $2K.

 

I've paid more, paid off car loan, paid off other CCs and Amex is on the warpath.  How desperate is Amex to reduce a $24K card to $23K???  Truly PATHETIC!

 

Amex got TARP, what else do they want, BLOOD?!

 

Drop dead Amex, you're LIARS, hope your stock keeps dropping.  Don't tell me my credit report sucks when BOA is offering me credit cards TODAY!

 

And I will continue to pay minimum on my VERY LOW BAL 1.9, 3.9 xfers, along with NOT USING your crappy Costco card, which I w/cancel after the Feb rebate.

 

AMEX, LEAVE YOUR CARDS AT HOME!

 


Message Edited by LilMirth on 01-29-2009 06:09 PM

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Creditaddict
Posts: 20,841
Registered: ‎10-23-2007
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Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

if you paid your account completely off tomorrow, amex would most likely CLD again but they probably wouldn't take away all 23k of your cl and they probably wouldn't close your account... but if you continue to pay min. they will CLD every 3 months and destroy your credit in the process... get out of sight as quickly as possible... believe me you are not going to win this battle by just paying min on your balance.
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Established Member
BuyGoldNow
Posts: 28
Registered: ‎11-02-2008
0

Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

[ Edited ]

Thanks to everyone who replied with helpful insights into this situation.  The bottom line is, as spelled out in the first message in this thread, I started with $60K of bal xfer at LOW APRs on 2 cards, where Amex offered the APRs for the life of the balance until paid.  Over the years I paid down until $40K before credit crisis hit. 

 

Can Amex change the terms of a bal xfer if I have not paid late and defaulted?

 

While I understand the constant CLD-ing and AA, if I pay off $40K now, Amex will most likely greatly reduce or eliminate these CLs.   I will never get them back.

 

If I pay min+ over a year or so, the credit crisis will eventually ease and I will have a lower balance, likely a lowered CL to match, and eventually Amex will stop the witch hunt and stop CLD-ing and chasing balances.  But at least I'll have more CL than if I PIF now.  Does that make sense?  So, let's say in a year or more I'm down to $30K bal, at least I have that to work with as the credit crisis eases.  PIF now, I'll have much much less CL, if any, looks like none at the rate they're cutting.  PIF later, have a better chance to keep that CL in the future. 

 

To add insult to injury, Amex calls me on my cell phone at 11am, voice says IMPORTANT MESSAGE FROM AMEX.  A CS gets on saying since I'm a "valued" customer with "excellent" credit, they wanted to inform me that my payment is due tomorrow and that I would get a late payment fee if I pay ON THE DUE DATE!  But since I have an excellent credit rating with Amex, could I pay now on the phone, and they'll WAIVE the fee for paying with a live CS?  UNBELIEVABLE!!!!   I went BALLISTIC at this CS saying I NEVER had a charge paying by computer ON THE DUE DATE!, how dare you call to intimidate me, how pathetically desperate you must be to call asking for a day early payment, I will NEVER use another Amex card again, how can I be "excellent" when you just CLD-ed me?, DROP DEAD!, among with other choice words.  Since conversation was being recorded, I said Amex treats customers like s..., and will lose their best customers!  Then CS says, you'll have another credit review in 3 months, I said, BS, you already did 3 in 2 months! Call me if and when I default!

 

Amex is desperately out-of-control!  They are not coordinated, one dep't CLDs, the other calls praising your never late payment record as a guise to get you to pay early! 

Message Edited by BuyGoldNow on 01-30-2009 10:34 PM
Moderator Emerita
LilMirth
Posts: 3,091
Registered: ‎08-09-2008

Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

BGN,

 

I understand what you're trying to do, but I think that you may have grossly miscalculated Amex's adjusted business model and future goals. Heck, I'm not even sure that Amex is going to come out the other side of this mess.

 

Obviously, I could be wrong, but I don't think that Amex is going to go back to business as usual in a year or so, or however long it takes to emerge from this recession down spiral. I think that they've redefined their core customer base (again) to eliminate a lot of people that have been included over the last years. They seem to want to return to 'elitist' lending, getting a lot more money form a lot less people, and by and large eliminating long-term revolvers.

 

I agree that Amex is going to either greatly reduce or outright close your account when it's paid off. I don't think that there's anything that you can do to avoid it. If you had PIF'd at the first sign of Amex's jumpiness, I think that it would have signalled them that you weren't the type of risk that they absolutely had to eliminate. They're cutting a lot of (maybe most) people's lines of credit, so they may have cut you, but allowed you to stay in the fold with an acceptable credit line. 

 

I don't know how much reading you've done on Amex's adverse action so far, but their actions towards you (even the attempts to get you to pay early) don't seem to be indicative of wanting to keep your business as soon as they right themselves. Amex can, and has closed accounts with balances that were not defaulting, or even late. And, you're paying them interest, allowing them to benefit financially, when I don't think they intend to return the favor.

 

I worry that as they continue to take AA against you, that your other lenders will take notice, and get on the bandwagon. It happens! It happens to people who pay their bills on time, and who would otherwise have stellar credit if it wasn't for the adverse actions of one lender who is in financial turmoil.

 

You seem to want to maintain a relationship with Amex over the long-term. If it's because of the potential for high credit lines, I'd remind you that there are other lenders who will be far more generous, and far less elitist in the future. If Amex survives this crisis, and gamble, I really don't think they're going to regain the prestige that they've had in the past-- at least not in the foreseeable future. I think that other financial giants are going to capitalize on their mishandling & mistreatment of customers, and jockey to take their place. The memory of the American consumer may be short, but the memory of the competing businessness is looooooong. They'll be happy to remind us, over & over again.


BuyGoldNow wrote:

 

Can Amex change the terms of a bal xfer if I have not paid late and defaulted?

 

While I understand the constant CLD-ing and AA, if I pay off $40K now, Amex will most likely greatly reduce or eliminate these CLs.   I will never get them back.

 

If I pay min+ over a year or so, the credit crisis will eventually ease and I will have a lower balance, likely a lowered CL to match, and eventually Amex will stop the witch hunt and stop CLD-ing and chasing balances.  But at least I'll have more CL than if I PIF now.  Does that make sense?  So, let's say in a year or more I'm down to $30K bal, at least I have that to work with as the credit crisis eases.  PIF now, I'll have much much less CL, if any, looks like none at the rate they're cutting.  PIF later, have a better chance to keep that CL in the future. 

 

To add insult to injury, Amex calls me on my cell phone at 11am, voice says IMPORTANT MESSAGE FROM AMEX.  A CS gets on saying since I'm a "valued" customer with "excellent" credit, they wanted to inform me that my payment is due tomorrow and that I would get a late payment fee if I pay ON THE DUE DATE!  But since I have an excellent credit rating with Amex, could I pay now on the phone, and they'll WAIVE the fee for paying with a live CS?  UNBELIEVABLE!!!!   I went BALLISTIC at this CS saying I NEVER had a charge paying by computer ON THE DUE DATE!, how dare you call to intimidate me, how pathetically desperate you must be to call asking for a day early payment, I will NEVER use another Amex card again, how can I be "excellent" when you just CLD-ed me?, DROP DEAD!, among with other choice words.  Since conversation was being recorded, I said Amex treats customers like s..., and will lose their best customers!  Then CS says, you'll have another credit review in 3 months, I said, BS, you already did 3 in 2 months! Call me if and when I default!

 


 

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Established Contributor
woopah
Posts: 721
Registered: ‎03-15-2008
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Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

I have to agree with LilMirth.  BuyGoldNow, you're basing your decision on the idea that you believe that Amex will stop chasing your balance once the credit crisis eases, and all that is is a guess on your part.  If you're very attached to your Amex and you Amex CL, I can understand why you'd hope that, but there is absolutly nothing to indicate that Amex is going to change the way they are currently doing business, even after the credit crisis eases.  There is of course no way to proove this, but by Amex's actions alone, I think all you are doing is delaying the inevitable and causing your scores to be lowered for far longer. 

 

I don't know how I feel about CLD's lowering ones FICO score, but it doesn't really matter, that's the way the system is.  Perhaps you don't need a high FICO right now, you're not applying for loans and your situation is good for you, but you never know when your situation will change and you might need a new mortgage or a loan for a car, etc.  And you may regret allowing AMEX to trash your FICO score for so long.  Because as long as they are CLDing, and you have it within your power to pay them off, and you don't, you're letting them trash your FICO score.  Admittedly, a FICO score that is lowered soley because of util,can usually bounce back once the util is bettered, but you're looking at least a month or more of waiting if AMEX won't report your paid off balance to the CRA's,

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Goals for 2009: 0 Credit Card Debt & 0% Util (achieved 2/6/09), Mortgage! (achieved 11/2/09), getting closer to 800 scores (I crossed this earlier this year, but I'm sure I'm not there anymore!)
Established Member
BuyGoldNow
Posts: 28
Registered: ‎11-02-2008

Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

Thanks for all the advice.  I don't agree with most of it.

 

I began with $60K MAXed out CL on 2 bal xfers a few years ago.  My 100% UTIL slowly decreasing over years didn't prevent my FICO rising to 750.  WHY NOT?  Now, Amex chases balances, I'm back to 100% util.  SO??   I've paid off more debts, no more car lease, no HELOC.   My only debts are Amex and some minor monthly credit cards. 

 

Whatever damage that may have been done by Amex has been already done.  I'm not paying to see FICO scores so I don't know what that damage is.

 

I'll continue to min+fin chg pay these LOW apr bal xfers and report here the criminal mafia-like tactics Amex will employ to try to get me to pay them off. 

 

JOIN THE AMEX CLASS ACTION SUIT when it is announced!

Regular Contributor
CHARGE_IT
Posts: 193
Registered: ‎07-13-2008

Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!

Good for you.

 

If you hadn't noticed, a number of posters have told you that you don't know what will happen in the near/far future. Does this imply in anyway that they can know the future and for some reason you can't .

 

I respect the fact you came here and asked for opinions and feedback and you have decided to go with your on view of your situation. I think that is one of the reasons for this place.

 

I for one believe your logic in this situation is quite on target. What you have said tells me you have thought this through well, not to mention you have had experience moving sizable sums of money. I think what you are planning is a smart gamble. If you didn't do it you would never know.

 

I would say "good luck", but I don't even think you need it. You'll make it with your resolve.

 

CI




BuyGoldNow wrote:

Thanks for all the advice.  I don't agree with most of it.

 

I began with $60K MAXed out CL on 2 bal xfers a few years ago.  My 100% UTIL slowly decreasing over years didn't prevent my FICO rising to 750.  WHY NOT?  Now, Amex chases balances, I'm back to 100% util.  SO??   I've paid off more debts, no more car lease, no HELOC.   My only debts are Amex and some minor monthly credit cards. 

 

Whatever damage that may have been done by Amex has been already done.  I'm not paying to see FICO scores so I don't know what that damage is.

 

I'll continue to min+fin chg pay these LOW apr bal xfers and report here the criminal mafia-like tactics Amex will employ to try to get me to pay them off. 

 

JOIN THE AMEX CLASS ACTION SUIT when it is announced!


 

Established Contributor
Itsmeagain
Posts: 832
Registered: ‎01-16-2008

Re: Amex Scrooge - Panics on Black Friday, Cuts Credit Lines TODAY! Amex Ruins X-Mas!


BuyGoldNow wrote:

 JOIN THE AMEX CLASS ACTION SUIT when it is announced!


Class Action Suit for WHAT? . . . . a creditor wanting their money back? . . . . I doubt that will ever happen.  Read your CC Agreement.  You agreed to it when you applied for the card.

 

After reading this thread, just for grins, I decided to apply for an Amex charge card.  I was instantly approved for their Gold Rewards Card. I'll use it for what it's intended, reap their rewards and PIF before the due date.

 

I think Amex will survive but will gravitate back to their core business which is CHARGE CARDS.  Remember when an Amex card only came in Green and they only offered it as a charge card?  Back then, the two cards I carried were an Amex and a Diners Club.  I don't know if Diners is still in business but Amex is a Great company if you realize that they are NOT a long term lender and respect the fact that they just want to turn their investment in you quickly.  Are they even a bank?  I've heard stories about them becoming one but their original business model did not include banking options.

 

Yes, I have other Credit Cards that I carry balances on and have BT's with but Amex is and will always be (IMHO) a charge card company and I'll never get angry just because they want their money back.


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