Amex Platinum Preset Spending Limit Added

[dirknights]

I am a bit of a noob in regards to cards. I recently used my Platnium at a business that I am affiliated with. I didn't know that was a no-no. It was going to a Tesla downpayment. So Amex sent me a letter stating that they added a limit to my account. I was just wondering how long does it take to get this limit removed again? Anything that I should focus on (other than not using my card at an affiliated business)? I have two cards with Amex, the other is the Delta Reserve.

[tparks5961]

Up to 1 year.  My account had a limit placed on it due to entering into a payment plan during Covid.

My year is up tomorrow 12/7.. 

I think any Adverse action and depending on the offense, can restrict your account for up to a year.

The most important thing I've learned about amex.. is no matter how much you spend... they don't need my business and could care less if I closed the account. 

Good luck.. 

[pizzadude]

I'm not sure there's a specific timeframe if you tripped some internal AMEX risk algorithm, did their letter ask you to provide any financial documentation or other info?

[dirknights]

It did not. I also called to offer up my financial info for review, but it was no dice. Here's the letter:

Dear [redacted]: We are writing to you today because we have assigned a Spending Limit of $[redacted] to your account and we wanted you to be aware of this change as quickly as possible. If at any time your total balance, plus any charges not yet posted to your account, exceeds this Spending Limit, we may decline additional charges. This applies to charges made by you and any additional Card Members on your account. As your total balance, plus any charges not yet posted to your account, approaches this Spending Limit, you can make a payment to reduce this amount so you can make additional charges. You will receive an additional notification via email or mail with the reason(s) for our decision. Sincerely, American Express Account Services

[FinStar]

As mentioned upthread, it can be up to a year or even longer -- no specific set timeframe. The process is automatic and manual review will not override the system.

What was the imposed limit?  And yes, don't do anything to draw attention or place any questionable transactions on any of your AmEx cards going forward as you're under the microscope for a bit.

[pizzadude]

Well in this case there isn't much to do other than being a good AMEX cardmember, paying on time and staying off their radar.

[SoCalGardener]

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@dirknights wrote:
I am a bit of a noob in regards to cards. I recently used my Platnium at a business that I am affiliated with. I didn't know that was a no-no. It was going to a Tesla downpayment. So Amex sent me a letter stating that they added a limit to my account. I was just wondering how long does it take to get this limit removed again? Anything that I should focus on (other than not using my card at an affiliated business)? I have two cards with Amex, the other is the Delta Reserve.

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I don't want to hijack this thread, but I wonder if someone could explain the bolded blue part of the above. By "affiliated with," does that mean that one is an owner, co-owner, investor, etc.? Or can it also mean an employee? This topic came up some months ago, but that had to do with a potentially shady deal of buying parts/products at their place of employment, then reselling them. I'd just like to know how/when is it a no-no to use a CC at a company you're affiliated with? HOW do you have to be affiliated with them in order for it to be a no-no? I'm as sure as I can be that the owners of the furniture store chain where I used to work used their CCs to buy merchandise all the time, as I did, and I'm 100% sure they wouldn't do anything shady!

[dirknights]

I am a co-owner in the business, and that was the issue.  When the transaction was declined, I called them up, and they told me the reason. I explained to them that I didn't know that I couldn't do that... thinking about it, I guess it's kind of obvious why they did it... but I was considering it more or less as, a normal transaction. The company that I am affiliated with is a corporation, a completely separate legal entity. It's like if Bill Gates bought a copy of Microsoft Windows on his Amex and got dinged.  

[dirknights]

This is unfortunate. I've had my other Amex card for a few years now, I've never had a late payment, charged about almost 100k in the past two years... it's unfortunate that they would put such a limit on my card for such a transaction without any information on how to get it removed. 

[FinStar]

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@dirknights wrote:

This is unfortunate. I've had my other Amex card for a few years now, I've never had a late payment, charged about almost 100k in the past two years... it's unfortunate that they would put such a limit on my card for such a transaction without any information on how to get it removed. 

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Unfortunately, that's the way of the world with AENB. Especially, if your other business (or affiliation with that entity) shared a merchant account.