American Express Lowered Credit Limit on Black Friday

Another victim here, just now AMEX lowered 5,500 on my limit and left
the amount owe plus $32.00 available credit as my new credit limit. I
called and gave a piece of me to the call center, then I just closed
the account. Nice way to screw with people on Christmas. I do not
believe in Class Action Law Suits by I would jump on this 'wagon' just
to put AMEX on its place. Never missed a payment and always paid 2 and
even 4 times a month 500 to 600% over the minimal payment due.
Way to go AMEX...

I just had my lowered $9,000, despite paying on time for over 10
years. I agree with you, my credit score will tank because now I show
90% usage, although I only owe $1,500. I previous had a $10,000
credit line!

I hear you.

This has happened to me, friends and family. You are not alone.

The news did keep warning us that there just wasn't enough credit to
go around. I guess we should have figured this would happen.

What really sucks about it is what it does to your credit. If you are
not at 30% or below of your max credit, your credit score plunges.

But just in case you were going to do anything drastic (like close the
credit cards which will also hurt you) just know that many, if not
all, credit cards are doing this. My chase and jcpenny did this. My
parents Sams club did it. And a friend had it happen with capital one.
All of them were within a weeks time of black friday.

I understand your frustration. Your debt to credit ratio can have a
big impact on your credit score and yours has just been screwed up by
them lowering your credit limit. It wouldn't suprise me if they now
came back around and increased your interest rate because them
lowering your limit lowered your credit score.

With credit scores being used to determine many things beyond credit
these days -- including car insurance rates and getting a job, this
must be very frustrating. Whatever happened to that credit card bill
of rights? It seems like if AE agreed to provide you with a certain
amount of credit at a certain interest rate that should continue to be
the case unless you violate some terms of service...but I guess they
can basically do what they want.

American Express has been doing this to most all of their customers
for the past few months. Its been in the national news and in the
newspapers.
If I am correct they are attempting to get do just banking and drop
their credit card department completely. So to do this they want to
get as much money as soon as possible. And it seems to work because
people will pay more on their balances now to keep the over the limit
fees from being applied. So actually more money is being sent to
American Express.

I do feel badly for anyone who has credit cards and cannot pay the
balance off. Its only going to get worse instead of better.

From reading you letter it sounds like you are not paying your bill
off every month! That was probably your intention when you got your
card(s).

Too often people over extend themselves all year, but especially
during Christmas. People are not honest with themselves about their
financial situation. You play the credit card game, you will
eventually get bit.

If you do not borrow money, you would care less about your credit
rating, I dont!

I am glad you are going to cancel your cards, you should cancel all of
them, and live on what you earn. If you cannot afford to pay cash
for, you cannot afford it, and it should not be purchased.


Good Day

In today's economic climate, delinquencies are rapidly increasing.
This explains why credit lines are being reduced. Also, cards are
being closed down. It is belt tightening time for banks as well as
us.

It sounds like you carry balances on your cards. Making "payments on
time" to me means paying the card off every month. This "minimum
payment" trickery they came up with a long time ago I don't
understand. They may have targeted you as a higher credit risk than
others, or maybe they just clotheslined everyone. I have an Amex
here, and I haven't had any changes made to it or my other cards.

The bonus of having your credit line reduced is that you won't be able
to carry a higher balance and have to pay interest on it.

Janice W.,

In a nutshell AX modified their aggreement with you, sent you a
confirming email and you read it at your convenience.

The good thing is that your APR did not increase as has happened to
others.

BillR.