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

[Anonymous]

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.

[tennisfan78]

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

[bichonmom]

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.

[nada9188]

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.

[jsucool76]

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.

[pdog661]

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@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.

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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.

[jsucool76]

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.

[Anonymous]

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@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.

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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.

[tennisfan78]

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@Anonymous wrote:

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@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.

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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.

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

[Anonymous]

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