Amex Gold - Sudden imposed limit (EDIT 10/21: Limits removed!!)

[AlanGJP]

So a couple weeks ago I bought a car. I called Amex to confirm I'd be ok putting the deposit on my Gold card. They said I'm good up to $10k - I wasn't sure what the deposit was at the time, so I confirmed $10k - just in case. Anyway, on that Friday I put $3k on the card as a deposit for the car. Later that day I received an email saying I needed to pay down the amount I'd charged or risk limits being placed on the card. I didn't consider this a big deal since I'd called and gotten the OK. Also, I couldn't pay it down since it was the only outstanding charge (My balance was $0 before the deposit) and it didn't clear until Monday. Monday morning comes, I pay it off completely.

Anyway, today (a couple weeks later) I get an email -- they limited my card to $4800. I ALWAYS pay my balance in full and usually every few days to so I don't have a large balance to pay at the end of the month. I used the card for the points, I would NOT have if I'd known this could happen.

Even though I never go more than say $5k on my Gold at any one time, and ALWAYS pay in full in 3 days to a week - MAX. I'm really upset they'd pull this when I specifically called to OK it beforehand. Again, I wouldn't have used the card had I known this could happen.

Posting this as a warning for anyone that does the same as me.

EDIT: It wasn't the car. It was my latest app spree that spooked them. (Received an email over night confirming) I can live with it being my fault and I don't blame them. a 30+% bump in credit with many cards and a loan, that would scare me if I was a lender. I intended to garden for 5/24 after the spree, we'll see how things settle down over the next several months...

EDIT2 10/21/21: ALL LIMITS REMOVED. Both my gold cards have been updated and they are now NPSL cards again. I wasn't too stressed about it since I didn't go on a spending spree. Most likely AMEX was worried my 5 new cards and LOTS of apps meant I was going to go into debt. After 2 months seeing that didn't happen, they removed the limits! (I do push 5 digits through my gold cards a month. All PIF within a day to a few days.)

[RSX]

that sucks

what did they say when you called them to explain the issue?

[AlanGJP]

I haven't called yet, can't call until later today. Has anyone had any luck reversing these? Seems awefully strange when I called before hand, explained I was putting a deposit on the car and got the ok. Then they limit my spending? :/

[RSX]

i am sure that when you explain the situation they will resolve it - that is why i asked if you had called yet

[FinStar]

Unfortunately, whenever an imposed hard limit (or restricted pre-set limit) is placed on the account, it is system-driven.  Agents, supervisors, etc., do not have the ability to override it. You can reach out to them if you wish just to see what options are on the table. The good news, though, the restriction can lift itself over time, but there is not exact timeframe on when that may occur for your particular situation since any DPs can vary from individual to individual.  This could take 6 months, 9 months or over a year or so.  Definitely keep this thread updated so that others can be aware of the outcome.

The take away, even as disappointing or unpleasant the situation, when notifications are provided for immediate payment, they should not be ignored.  Most folks would say "well, they told me it was ok to charge up to X" or "why should I have to pre-pay if that's why charge cards are intended for", etc.  Bottom line, they can take payments over the phone even if the transaction hasn't posted.  Unfortunately, we're not privy to your financial situation, credit report data, income, or history with AmEx in order to make an informed assessment as to why an imposed hard limit was placed. Typically, similar situations can occur whenever a POT feature is removed from a charge card.  It basically means AmEx is limiting its overall exposure (personal and business) in the interim until they feel comfortable.

[Loquat]

It sucks OP, won't make light of that. But you mentioned that you don't ever go over the limit anyway so I wouldn't sweat it too much. Yep, I know it does seem like it was triggered by your larger purchase but what's done is done.

Ask them if they'll lift it...worse they can say is no. Even if they don't and the card still provides solid value...I'd say put the issue in your review mirror and carry on.

Life is too short to spend it trying to figure out what causes such things.

[Remedios]

Full disclaimer, I dislike everything about Amex when it comes to charge cards, but I don't have any, so not my hill to die on. 

With that said, your answer is here   

You just opened businesses gold, you are pushing significant amounts through it, and now your spending on personal card increases right as you are putting large spend on business also.

Sure, you are paying, but your spending power on charge cards isn't static. 

While Amex loves spending (which lender doesn't), they don't like losing money and with such significant increase in spending, they cannot tell where your "I'm overextended" line is without either voluntary IV or passage of time, which in your case did not happen. 

So, if you are issuing a warning, it should come with "Take it slow at first" 

Good luck and I hope it changes for you soon. 

[tparks5961]

Oh gosh American Express.

I was recently in Amex prison, and now Im out and on probation.  

I had a hard limit of $4,000.00 imposed on my card because of my inability to pay during the whole covid shut downs.  After a financial review and lots of spend, I've since had that limit raised to $29,300.00.  The limit is  still not high enough as I spend between 80k-100k per month on it.  

Aftrer 2 months of being  on AMEX probation (Hard limit of 29,300), I submitted another request to raise the limit. They asked for 3 months of bank statements, and denied my request for another increase.  (My deposits for 3 months added up to almost 400k.)

During the whole covid shutdown, my Blue plus card had a limit imposed on it of $700.00..  My request to raise that limit has been denied two times.

My credit scores are 760 , 754, 754.  If i were under 5/24, I would have left for chase already and each time im forced to call Amex so they can verify one of my payments, I make them aware of my desire to switch companies if I could.

I'm in the process of Purchasing CD's with AMEX that will act as collateral so that I can raise my limit to roughly 80k... Which makes me even more upset, because It's essentially a glorified secured credit card at this point...   I've been going through this for roughly 7 months now.

The reason for this post is to just let you know that unfortunatley, once you're on their radars.. You should prepare yourself.

The process to re - establsih your limits may be extremely frustrating. 

[Creditaddict]

it sucks but if you never go over that amount anyway it won't matter... it will be reviewed at 12 months by the system to raise or remove.

and even though it's a limit, you likely can go over it... for some reason I received a set limit on my platinum business after just like 45 days but I can almost charge double what the limit they set and I receive a text or email usually after a charge that the next one will be declined unless im already way over and try to put something large on, then it might decline but with amex instant payments it's all fine... 

Note, I do not have hard limits on my gold for business or my personal platinum which were both opened AFTER this business platinum and the hard limit set... it's odd but oh well.

[AlanGJP]

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@FinStar wrote:

Bottom line, they can take payments over the phone even if the transaction hasn't posted.  Unfortunately, we're not privy to your financial situation, credit report data, income, or history with AmEx in order to make an informed assessment as to why an imposed hard limit was placed. Typically, similar situations can occur whenever a POT feature is removed from a charge card.  It basically means AmEx is limiting its overall exposure (personal and business) in the interim until they feel comfortable.

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I did not know that, and I had cleared it with them prior. I push $10k+/mo through my Amex cards and given it's less than 1/3rd my normal monthly spend - of which I NEVER carry a balance and usually PIF the next morning/when it clears I did not expect this would be an issue. Especially when I'd called and talked to a rep and he specifically told me - $10k would not be a problem. Yes, I took note of the email and FWIW, I would have paid it immediately had I known I could pre-pay (I didn't even know that was a thing). And yes, I realize my lack of knowedge doesn't make a mistake ok. HOWEVER, me calling and telling the rep what I was doing SHOULD have resulted in him warning me, or letting me know 'x' might happen, etc. He did anything but. He was friendly, said it wouldn't be a problem and asked if I needed anything else. Why would I suspect I should pre-pay to avoid the resulting limits? I'm sorry, but I don't think what happened is justified. I went above and beyond specifically to avoid anything like this.

As for data points. I push $10-15k+ through Amex/mo all cards combined. I have nothing bad on my credit, nothing. As for income, six figures+ I'm not going to elaborate beyond that.

As an aside; My business gold has a $10k POT. I didn't want the car on that card since it isn't a business expense.