It's all internal stuff with Amex. They've internally qualified your friend a Pay Over Time limit of $1000. Any spending over that $1000 will be due in full by the next payment date. So, if $1600 is spent & reported on the statement, the amount due on the next payment date would be $600 (amount over $1000) plus whatever the minimum amount due on the qualifying $1000 Pay Over Time charges. I believe that is correct....at least I hope my description is.
Thanks of clarify
So that means the he can still do charges now until the minimum due but This Chargers He does now won’t go into the POT category unless he pays the over POT limit amount he was over now
correct - he's maxed out the POT limit and can't defer anything else with it until he makes room, so all further charges will be due at the end of the billing cycle
Does with time the POT limit get increased?
it can be at Amex's discretion - it has happened for others
I think it's more profile- and history-dependent than anything else. I have $15k, but I've seen from $10k to $35k on Gold and Plat. I don't think they tier it based on the card since they aren't different "levels" of the same card, they have different intended audiences.
IDK, the wording to me appears as if this person has reached their internal limit. And perhaps Amex wants the card paid down, to be able toi keep using it? Although that sounds more like a revolver than a charge. But we know from past DP's that some account sdo haev lower spend limits on Charge Cards.
Maybe OP should call Amex to confirm exactly what the is going on.
Reading back through the two emails, it seems to be both actually, that POT is over max and won't continue until it's paid, and also that a payment is needed to continue use of the card.
OP, is your friend new to Amex? If so, running over a thousand dollars in the first two weeks may be pushing it with no payment history. Your friend should do as @Janus suggests and call in to clarify with a CSR exactly what Amex would like to see, and also make a good-size payment to them to show good intent and ease any fears they may have that he is overspending his means.
Easing into a relationship with a new lender is never a bad idea. My first couple months I spent less than $500 per month on my Gold, and then started increasing. My payment this month that's due 12/2 is $1564, and yet I'm able to use my card freely - I eased into the Gold and its usage as it's my first charge card with Amex, although I do have a year with them as a revolver cardholder, and I'm sure that history helps too.