This article isnt just about AMEX but about all credit card companies.
"If past is prologue, credit-limit decreases — and American Express is not the only credit-card company doing this — is a reaction to what creditors perceive as increased risk of defaults"
If you read the article Mr Sak had 3 personnel cards (and 6 business) with AMEX, one of which was his Blue Cash with a limit of $21K. It also says his average balance with all his cards was $15K. So lets just say $21K for the blue and two others with $12K each limit. Then it mentions how his credit score took a hit by 40 pts dropping it to 640.
So he either had a higher score in the 700s that took a hit from inquiries, utilization, new lines of credit, or whatever that dropped it to the 680 or he had a lower score which he improved to achieve the 680. I understand that the 680 has no way to see how much his HHI is and he could be making 6 figures but just had a bad past which lowered his score. There are soooo many factors that could be put into play on his score.
Either way, i doubt he was approved for those high lines of credit right off the start. So you can request a CLI once every 30 days with AMEX. That is 1 time per all of your accounts per 30 days. So, lets just say he had his accounts for a little while and through this time he asks for a CLI every month and is approved, everytime.
He keeps hitting the LUV button and the computer looks at his 680 and goes sure approved. Then a "human" employee looks at this $45K CL and his 680 score and is like, ok maybe we should check on this.
So, by this scenerio this F/R could have easily been done due to a lower score applying for too much credit, even if his HHI supports it. All AMEX is doing is saying, DANG! you have a lot of credit, your score is good but to support this kind of credit we would like to see proof of your HHI.
"All accounts were temporarily frozen and AmEx requested documentation proving his income: pay stubs, bank statements or a completed IRS form 4056-T"
Yes, i know, they shouldnt have approved the CLI in the first place but how hard is it really to just send them a pay stub and have your account back on line in a week or two?
Sorry i am long winded, but i am currently in Iraq and very bored at the moment so decided to try to take a different look at the situation, instead of just yelling at AMEX and their F/Rs.
And, i do have a AMEX Blue Cash with a $12K limit. If they F/R me, i will be upset about it, but i have the documentation easily at hand and will get it to them and have my card back online quickly enough. I can honestly say their customer service is so good, that i can put up with a 1 time F/R and have a lifetime of good service.
Ok, i need to get some work done, i am not going to proof read what i wrote hah, i will check back later!
<3 to the forums!
