Wonderful email from Amex.

[Red1Blue]

      Important Account Status

    Notice of Credit Limit Reduction

Your Account ending in  

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Dear xxxxxx

We are contacting you to be sure you do not have any surprises when you use your card.  In this difficult economic environment, we all need to make choices about how we spend and save.  For us, that means carefully reviewing the spending and debt profiles of our Cardmembers - and making some difficult decisions.  Unfortunately, we have had to make the decision to lower the credit limit on your account listed above.

Your revised credit limit for purchases is now $1,000.00.  The new cash advance limit is $0.00.  Please ensure that any additional Cardmembers on the account are also aware of this change so they do not have any negative experiences when they use the Card.

You will also receive this information by letter, but we wanted to be sure you were aware of this change as soon as possible.  We strive to be a responsible lender during both prosperous times and more challenging ones, and we do remain committed to our relationship with you.

Sincerely,

American Express Account Services

 
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Message Edited by concorduser on 04-12-2009 09:27 PM

[Anonymous]

Ouch, sorry to hear. What was your original CL?

[Anonymous]

I got the same e-mail from them today.  My credit limit was reduced from $3000 to $2600.  "Coincidentally" I made a $500 payment 2 weeks ago.  They actually reduced my limit last weekend.  Now I'm maxed out... I'm only going to make minimum payments from now on and pay off the rest of my cards first.  

[Lyythine]

I think they are doing it to almost anyone who carries a balance.  I have both a Green and a Blue cash card from Amex.  I PIF both before the statement cuts and I have received nothing but increases in the past year or so... But my sister told me to today at easter dinner that they cut her line in half (but she also carries balances).  They did increase my APR, which i found a bit funny since I have never carried a balance and dont intend to... You think they would notice these things...  Anyway, thank god that I have other cards besides amex, they are just barely staying afloat (at least in my opinion).  Dont feel too bad though, it seems they are doing it to everyone that carries a balance, and some to those who dont.

P.S.  I knocked on wood the entire time i wrote this post.  If i get a CLD in the next couple of weeks, im gonna laugh my arse off, then cry in the corner for posting this... 

[Red1Blue]

I never carried balance on my account. Always PIF and most of the time, I have been paying 2-3 payments a week or as soon as I see a charge posted to my account. Amex is a brain dead company.

[Anonymous]

Maybe they have just now decided that you have too much credit? You did have quite the apping spree last year.

ETA: what do they say when you call them?

Message Edited by dizzier on 04-13-2009 08:59 AM

[Anonymous]

I wonder if it is possible that AMEX, as a system, does not consider the "portfolio" of AMEX credit when approving new credit, but each account individually, and that new AMEX accounts may trigger the same actions against existing accounts as that of a third-party account....ie: new account/CL triggers existing account actions???

I know that certain "products" have different criteria for approval, different threshholds and terms, etc.  When my wife originally applied for the Green card, she was denied. She apped for the Gold card the following weed (on advice from a colleage) and was approved????  Was a head scratcher....didnt' have another AMEX account....couldn't get Green, but Gold said yes.

Message Edited by txjohn on 04-13-2009 06:07 AM

[Watchmann]

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@Red1Blue wrote:
I never carried balance on my account. Always PIF and most of the time, I have been paying 2-3 payments a week or as soon as I see a charge posted to my account. Amex is a brain dead company.

---

Just a thought, but is there a chance that AMEX could look negatively on an account which is constantly being PIF during the month?  Perhaps their data shows accounts with this type of activity are more prone to fraud or failure?  I never could see much point in paying multiple times during the month, so maybe it is considered a negative by the AMEX Mothership.  Paying a charge off each time one pops onto your account doesn't seem to make much sense, and maybe AMEX feels the same way.

[Anonymous]

that sux!! i will not own an Amex card!!

[score_building]

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@Watchmann wrote:

---

@Red1Blue wrote:
I never carried balance on my account. Always PIF and most of the time, I have been paying 2-3 payments a week or as soon as I see a charge posted to my account. Amex is a brain dead company.

---

Just a thought, but is there a chance that AMEX could look negatively on an account which is constantly being PIF during the month?  Perhaps their data shows accounts with this type of activity are more prone to fraud or failure?  I never could see much point in paying multiple times during the month, so maybe it is considered a negative by the AMEX Mothership.  Paying a charge off each time one pops onto your account doesn't seem to make much sense, and maybe AMEX feels the same way.

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concord - it seems likely that your CLI request submitted shortly after you received the Clear card may have placed your brand new acct under renewed scrutiny and this may be one reason that led to the CLD.

although it would not be the least bit surprising if this is in fact yet another action that amex objects to unilaterally (in other words, w/o telling the customer of said objection) the idea that paying back a cc loan sooner rather than later is viewed as a negative by a ccc doesn't make much sense imo.  if that was the case presumably they would impose prepayment penalties as a disincentive.

paying a charge off immediately is 10xs preferable to being late.  so if that is what it takes, nothing could make more sense to me. 

Message Edited by score_building on 04-13-2009 09:53 AM