topic Re: Amex tried to cut my limit to below my balance twice? in Credit Cards

Amex tried to cut my limit to below my balance twice?

Anonymous — Thu, 27 Dec 2012 06:25:40 GMT

Ok, I have 2 AMEX cards. I have always like Amex they have been good to me for the most part. Recently I checked my account online and see they cut the available limit for both my cards today. On the one account it was $5000, And I had a balance of like $2,212ish. They cut my limit to $2000 leaving me over my limit by like $12. On the other card I had a limit of $8000, The card had no balance, But had a pending charge of $3200ish. Again they cut my limit to $2000ish. I zeroed both balances out, However I don't know if they are going to try to get Over the limit charges on me. I called them up and they wouldn't give me a reason for the cut, however the guy told me if Id left the balance at what it was they would have charged me, but since I made a full payment the charges will be waived.

This is ridiculus, I guess Ill be shredding these cards. Had I not been able to make a full payment, Could they have really charged me for over limit fees because they cut the limit? First time I have ever seen this.

I really don't care that they cut the limit, Just that they tried to cut it without any warning and would have charged me.

Re: Amex tried to cut my limit to below my balance twice?

tennisfan78 — Thu, 27 Dec 2012 06:34:01 GMT

That is crazy. May be you can call again and ask for the reason.

Re: Amex tried to cut my limit to below my balance twice?

bichonmom — Thu, 27 Dec 2012 06:37:32 GMT

I'm sorry to hear about that. I'm wondering what else might be going on on your CR. What's your overall util?

Also, you said that you had a bal of $2212, so I'm wondering if that was just the most recent statment balance or if you had been carrying a balance. For some reason Amex just doesn't like people to carry balances, even on their credit cards. Occasionally, someone will post that they did it without a problem. But anecdotal evidence suggests that they don't like it.

So, if you were paying down the $2k and carrying a balance... Plus just got a rather large authorization for over $3k, that could be enough of a red flag. Plus I would pull your CR if you're not using a CMS and see what's going on. It could be that those factors combined with something they saw when they softed you caused the AA. It could be that you have high overall util or something negative posted on your CR that you don't know about.

Re: Amex tried to cut my limit to below my balance twice?

nada9188 — Thu, 27 Dec 2012 08:59:44 GMT

Amex doesn't charge over the limit fees. If you are over the limit more than 4 times a year they raise your interest rate. Once isn't going to do it.

Re: Amex tried to cut my limit to below my balance twice?

jsucool76 — Thu, 27 Dec 2012 15:54:37 GMT

Also, im fairly certain it is illegal for them to cut your limit to an amount BELOW your balance.. Ill recheck the card act stuff but im fairly certain something like that was in there.

Re: Amex tried to cut my limit to below my balance twice?

pdog661 — Thu, 27 Dec 2012 16:05:42 GMT

@Anonymous wrote:
Ok, I have 2 AMEX cards. I have always like Amex they have been good to me for the most part. Recently I checked my account online and see they cut the available limit for both my cards today. On the one account it was $5000, And I had a balance of like $2,212ish. They cut my limit to $2000 leaving me over my limit by like $12. On the other card I had a limit of $8000, The card had no balance, But had a pending charge of $3200ish. Again they cut my limit to $2000ish.

Is this 3200ish charge normal for you and AMEX? What else has changed on your credit file? Have you open new accounts recently? Has your uti changes more then 20% in the past month?

If you have new accounts, and a raised uti due to the holidays, and then run a 3200 charge through AMEX......... They are going to think you are on a run and cut your limits to stop their exposure. AMEX typically soft pulls their accounts monthly. Large changes and large charges = FR or CLDs.

***edit to fix quoting format error.

Re: Amex tried to cut my limit to below my balance twice?

jsucool76 — Thu, 27 Dec 2012 16:04:18 GMT

Im back!

"Consistent with the January 2009 Regulation Z Rule and the July 2009 Regulation Z Interim Final Rule, the Board proposed to retain § 226.9(c)(2)(vi) to address notices of changes in a consumer’s credit limit. Section 226.9(c)(2)(vi) requires an issuer to provide a consumer with 45 days’ advance notice that a credit limit is being decreased or will be decreased prior to the imposition of any over-the-limit fee or penalty rate imposed solely as the result of the balance exceeding the newly decreased credit limit."

As long as they don't nt charge an OTL fee, they're fine and they can do it.

Re: Amex tried to cut my limit to below my balance twice?

Anonymous — Thu, 27 Dec 2012 17:06:13 GMT

@jsucool76 wrote:
Im back!

"Consistent with the January 2009 Regulation Z Rule and the July 2009 Regulation Z Interim Final Rule, the Board proposed to retain § 226.9(c)(2)(vi) to address notices of changes in a consumer’s credit limit. Section 226.9(c)(2)(vi) requires an issuer to provide a consumer with 45 days’ advance notice that a credit limit is being decreased or will be decreased prior to the imposition of any over-the-limit fee or penalty rate imposed solely as the result of the balance exceeding the newly decreased credit limit."

As long as they don't nt charge an OTL fee, they're fine and they can do it.

So after 45 days, if you don't reduce your balance, they can hit you with OTL fees. IMO, Very unfair rule.

Balance chasing is one thing, but going under the balance to collect fees is outrageous! As I have said many times, AMEX is not prime.

Re: Amex tried to cut my limit to below my balance twice?

tennisfan78 — Thu, 27 Dec 2012 17:13:51 GMT

@Anonymous wrote:
@jsucool76 wrote:
Im back!

"Consistent with the January 2009 Regulation Z Rule and the July 2009 Regulation Z Interim Final Rule, the Board proposed to retain § 226.9(c)(2)(vi) to address notices of changes in a consumer’s credit limit. Section 226.9(c)(2)(vi) requires an issuer to provide a consumer with 45 days’ advance notice that a credit limit is being decreased or will be decreased prior to the imposition of any over-the-limit fee or penalty rate imposed solely as the result of the balance exceeding the newly decreased credit limit."

As long as they don't nt charge an OTL fee, they're fine and they can do it.
So after 45 days, if you don't reduce your balance, they can hit you with OTL fees. IMO, Very unfair rule.

Balance chasing is one thing, but going under the balance to collect fees is outrageous! As I have said many times, AMEX is not prime.

In your opinion, what are some prime cards? (i have burned amex in the past, so looking for suggestions on other prime lenders) Thanks

Re: Amex tried to cut my limit to below my balance twice?

Anonymous — Thu, 27 Dec 2012 17:14:10 GMT

Oh my! That is awful what they did! Makes me second guess applying with them next year. Maybe I'll try Discover instead.

Re: Amex tried to cut my limit to below my balance twice?

Anonymous — Thu, 27 Dec 2012 17:15:14 GMT

Yes please list some other prime cards other than AMEX. I'm currently working with Chase.

Re: Amex tried to cut my limit to below my balance twice?

tennisfan78 — Thu, 27 Dec 2012 17:17:41 GMT

@Anonymous wrote:
Oh my! That is awful what they did! Makes me second guess applying with them next year. Maybe I'll try Discover instead.

I got approved by discover last week and surprisingly they gave me a CL of $4500. I would definitely recommend to add it to your list!

Re: Amex tried to cut my limit to below my balance twice?

Anonymous — Thu, 27 Dec 2012 17:20:45 GMT

Awesome! That is a very nice CL from Discover! I think I will take up that offer next year instead of AMEX. I don't like how they chop limits without warning as that is a hit to the CS. Not good.

Re: Amex tried to cut my limit to below my balance twice?

pdog661 — Thu, 27 Dec 2012 17:37:55 GMT

To find prime cards log into credit karma, and sort cards by credit score.

I would argue that any card requiring a 720 our better would fall into the "prime" catagory.

Chase, BoA, Barclays, Discover, AMEX, and even Crappy1 all offer "prime" cards.

Re: Amex tried to cut my limit to below my balance twice?

pdog661 — Thu, 27 Dec 2012 17:40:39 GMT

@Anonymous wrote:
Awesome! That is a very nice CL from Discover! I think I will take up that offer next year instead of AMEX. I don't like how they chop limits without warning as that is a hit to the CS. Not good.

AMEX is a strict credit card company. They are based around charge card offerings, and still seem to hold that mentality when reviewing revolver accounts.

They do offer some of the best reward programs, and the high end cards come with excellent customer service. If someone is looking for a normal revolver where they carry a balance every month, then I would say AMEX is not the right fit for your credit needs. Not their fault, not the cardholders fault. It's just not a compatible relationship.

Re: Amex tried to cut my limit to below my balance twice?

Anonymous — Thu, 27 Dec 2012 17:46:52 GMT

In years past, when I had good credit. I had good experiences with Discover, Chase, BofA, CIti.

From my experience, AMEX who used to be my main card, started changing about 10 years ago, They changed from a very tolerant helpful company to one who was looking for ways to cut your rewards, charge you fees, and the not as helpful for customer service. Now they are very agressive about FR, cutting limts and closing accounts if they have any indication your credit may drop a bit.

Re: Amex tried to cut my limit to below my balance twice?

tennisfan78 — Thu, 27 Dec 2012 18:05:09 GMT

@pdog661 wrote:
@Anonymous wrote:
Awesome! That is a very nice CL from Discover! I think I will take up that offer next year instead of AMEX. I don't like how they chop limits without warning as that is a hit to the CS. Not good.
AMEX is a strict credit card company. They are based around charge card offerings, and still seem to hold that mentality when reviewing revolver accounts.

They do offer some of the best reward programs, and the high end cards come with excellent customer service. If someone is looking for a normal revolver where they carry a balance every month, then I would say AMEX is not the right fit for your credit needs. Not their fault, not the cardholders fault. It's just not a compatible relationship.

So, Amex is better when you always pay in full every month?

Re: Amex tried to cut my limit to below my balance twice?

pdog661 — Thu, 27 Dec 2012 18:20:50 GMT

@tennisfan78 wrote:
@pdog661 wrote:
@Anonymous wrote:
Awesome! That is a very nice CL from Discover! I think I will take up that offer next year instead of AMEX. I don't like how they chop limits without warning as that is a hit to the CS. Not good.
AMEX is a strict credit card company. They are based around charge card offerings, and still seem to hold that mentality when reviewing revolver accounts.

They do offer some of the best reward programs, and the high end cards come with excellent customer service. If someone is looking for a normal revolver where they carry a balance every month, then I would say AMEX is not the right fit for your credit needs. Not their fault, not the cardholders fault. It's just not a compatible relationship.
So, Amex is better when you always pay in full every month?

Here I go opening my mouth and I will get FR'ed tomorrow!...... but I have had 2 amex cards since '06, and the plat this year.

I have roughly 30K of open revolver, and the plat internal limit is 35K. I pay the balance on all my cards in full every month, or in 6 weeks max.

However, in 2009 I hit some hardship after buying too much house, and I carried a 5K balance on my blue for 6 months. At month 7 they chased the balance as I paid as much off as I could afford. My limit went from 9K to 4K.

On my annual credit report is shows they soft pull me monthly. When they reduce my limit my credit score went from 743 to 636. I do not blame AMEX in the least, and I was surprised they did not close my accounts, or FR me. I was not the same person the leant to when they issued the cards. AMEX likes good credit and high incomes. They will not tolerate anything else, and truly do not enjoy change. Once I regained control I went back to use the card normal (pay in full) for 6 months and they auto CLI me to 10K.

Personally, I love AMEX. When the CLD I deserved it. I can not fault AMEX for this, and once I regained control they were happy to re-up my CLI like nothing ever happened. I even missed a payment by 45 days, and they did not report it to the CRAs. I called the CSR and stated I had to miss a payment, and I just could not avoid it. She was very polite, and told me the AMEX will do everything it can to not report a baddie to the CRAs unless you really mess up with them. Then they never forget or forgive haha.

On a side note:

The platinum card has the best customer service I have ever seen from a credit card company. They are extremely friendly and will do everything they can to assist any need you have. From booking hotel rooms, to find a nice restaurant in an unfamiliar city or town. If the have to transfer you to a different rep they stay on the line with you, and begin to apologize for the hold roughly 5 seconds into the hold.

Re: Amex tried to cut my limit to below my balance twice?

Anonymous — Thu, 27 Dec 2012 18:30:06 GMT

That's some good information you posted. I wanted an AMEX to make taking a vacation easier. I would have most of the cash upfront for the vacation but I would like to divide the charges by 4 and pay over 4 months. It sounds like if you don't carry a balance for over 6 mos, they are fine with that. I may reconsider now but I still think getting a Discover in Sept and then AMEX 6-9 mos after that is probably the approach I should take.

Re: Amex tried to cut my limit to below my balance twice?

tennisfan78 — Thu, 27 Dec 2012 18:38:01 GMT

@pdog661 wrote:
@tennisfan78 wrote:
@pdog661 wrote:
@Anonymous wrote:
Awesome! That is a very nice CL from Discover! I think I will take up that offer next year instead of AMEX. I don't like how they chop limits without warning as that is a hit to the CS. Not good.
AMEX is a strict credit card company. They are based around charge card offerings, and still seem to hold that mentality when reviewing revolver accounts.

They do offer some of the best reward programs, and the high end cards come with excellent customer service. If someone is looking for a normal revolver where they carry a balance every month, then I would say AMEX is not the right fit for your credit needs. Not their fault, not the cardholders fault. It's just not a compatible relationship.
So, Amex is better when you always pay in full every month?
Here I go opening my mouth and I will get FR'ed tomorrow!...... but I have had 2 amex cards since '06, and the plat this year.

I have roughly 30K of open revolver, and the plat internal limit is 35K. I pay the balance on all my cards in full every month, or in 6 weeks max.

However, in 2009 I hit some hardship after buying too much house, and I carried a 5K balance on my blue for 6 months. At month 7 they chased the balance as I paid as much off as I could afford. My limit went from 9K to 4K.

On my annual credit report is shows they soft pull me monthly. When they reduce my limit my credit score went from 743 to 636. I do not blame AMEX in the least, and I was surprised they did not close my accounts, or FR me. I was not the same person the leant to when they issued the cards. AMEX likes good credit and high incomes. They will not tolerate anything else, and truly do not enjoy change. Once I regained control I went back to use the card normal (pay in full) for 6 months and they auto CLI me to 10K.

Personally, I love AMEX. When the CLD I deserved it. I can not fault AMEX for this, and once I regained control they were happy to re-up my CLI like nothing ever happened. I even missed a payment by 45 days, and they did not report it to the CRAs. I called the CSR and stated I had to miss a payment, and I just could not avoid it. She was very polite, and told me the AMEX will do everything it can to not report a baddie to the CRAs unless you really mess up with them. Then they never forget or forgive haha.

On a side note:

The platinum card has the best customer service I have ever seen from a credit card company. They are extremely friendly and will do everything they can to assist any need you have. From booking hotel rooms, to find a nice restaurant in an unfamiliar city or town. If the have to transfer you to a different rep they stay on the line with you, and begin to apologize for the hold roughly 5 seconds into the hold.

That is some great information about your experiences with Amex.

I cannot believe that the scores dropped by more than 100 points though when the CLD happened.

Great to hear that they are treating you well now!