My credit reduced without notice.

I too was recently screwed by AMEX. I have been a customer since 2004
and always paid in full every month. I got the card for air miles and
have flown many places thanks to AMEX/Delta miles card. When they
increased my limit to $25K a few years back, I told them that was
ludicrous and requested a reduction, which they did to $12K.
Recently, the limit was reduced to $2.9K by AMEX, because of "late or
delinquent payments." I found that my son, who I had cosigned a
mortgage for was late on a payment and it also reflected on my credit,
even though neither the bank nor my son told me about it. AMEX would
here no excuse. They said they got all the info from Experian. Well
all accounts are now current, my son went through some "tough love"
concerning credit, I've wrote the bank and they said they would put a
note of explanation on Experian but AMEX still won't budge, even
though I've been a great customer. AMEX used to treat me good and look
out for me with notifications is something looked fishy. They had no
problem calling about that. A phone call on their part in this
instancem, before taking action, would have been nice. Cancellation is
just days away. I'm leaving home without it! Guess what's in my
wallet now?

I love how people think they're entitled to something...$500 eh? At
least you have SOMETHING work with. Most of the time cards are just
cancelled without notice...cardmemeber to calls in to see why their
charges are denied. I have to be the one to tell them that their
account was canceled and that theres nothing that can be done. Those
are the ones I feel sorry for. I don't feel sorry at all for you and
your $500...grow up.

Do you have a source that confirms this statement? As long as a
customer can pay, it seems odd a merchant would care. And by
"scheme", are you referring to the lowering of your limits? 35% of
banks are lowering their customers' credit limits, according to a
statistic on CNBC last night. It isn't just AMEX, and isn't to screw
the customer. Credit limits got way out of whack (I have a Chase card
with a $48,000 limit - what the heck will I use even a quarter of that
for?), and with delinquencies skyrocketing, banks are forced to reduce
their exposure to risk. One way is to reduce limits. Unfortunately
banks have to worry about the customer with the $30,000 limit, carries
a large balance, and all of a sudden loses his job. Maybe he'll rack
up a lot of charges before the bank catches up with him, and then they
are hosed.

Did you regularly use your card for more than $500, and pay it off
each month? If so, it seems strange (assuming your credit is good)
they would lower your limit so far.

It is exactly to AVOID going out of business that AMEX is taking such
drastic measures, generally speaking. Would it make you feel good to
send 67,000 workers onto the streets in this economy? Because a
company wouldn't lend you money?

I doubt they will do it.
I think you'll find that a lot of companies are reducing credit
limits. Look around on this site, you will see plenty of letters just
like yours. Too many people are defaulting, and the banks are losing
money. I think it's ridiculous to wish a company to go out of
business because they are trying to protect their interests. How many
of those freshly unemployed are you willing to sponsor?