Upset with Amex and warning

[carmie3377]

I'm sure there are plenty of threads out there similar to this one but I wanted to post my experience. I know I posted on a long one about the possibility of CC companies charging fees and taking away rewards but wanted to share this....

Yesterday, I received a phone call from Amex. The phone rang one time and hung up. Expecting an important phone call regarding the health of my mother, I immediately called it back. It was Amex and all the message said was "This is American Express, please enter your card number" RED FLAG. Don't ever enter your card number unless it's the number YOU CALL. How was I to know that it was really Amex??? Any way, I hung up and called the number on my card. I don't mind entering my card number when I call because I know who I'm calling. When someone calls me, I have no idea if it's legitimate. When I worked for a bank, we told customers to never give out their account numbers unless they call us.

Okay, it really was Amex but I stressed to them that even though their call was legitimate, it gives customers a false sense of security to give their info out to anybody that calls. Then, they informed me that they reduced my credit limit over 50%. They reduced it just a couple hundred over my current balance. I was taking advantage of a 0% for one year and not paying off my balance monthly, although I was making payments substantially larger than my min due. My payments were on time, I never went over the limit, so why was by limit reduced so much? They said they reviewed my credit file and the reason was too many inquiries in the last 24 months. Okay, this was the last card I opened. I've not applied for anything since getting the Amex including utilities, ect. So how could my inquiries gone up since applying for the card? Plus, I have an excellent credit score with zero late pays/over limits, low debt to avail credit, ect. Anyway, since I don't need the card and I can just pay it off anyway, the only reason I first got upset was because I'm worried about my rewards. I don't want them to take those away too as I have over $500 built up. That is the reason I use credit cards, is for the rewards. Now, I'll just use my Disney Visa for rewards

So, I start thinking about what they did and I get upset again and worried. We are leaving for vacation in 2 weeks. I don't like to travel with a bunch of cards so normally I just take one, but was planning on taking 2 since a lot of places don't take Amex. I usually leave my debit at home. What if this happened while on vacation? I'd be okay since I have another card on me AND keep my cell phone with me. But, we are going on a cruise in Dec and I do not plan to use my phone on the ship because rates are skyhigh and I may not even be able to get reception at all times. What happens if I plan on doing a bit of shopping in the Virgin Islands, thinking I have over 10K available (not that I would spend that much)? Then the charges get denied or I get over limit fees.

So, I just wanted to pass along what happened to me so perhaps it could prepare one of you for it. It's disappointing because I take good care of my credit. I'll just have to make sure I now have my debit card on me at all times and even while on vacation, I'll have to call and get updates on my cards. I've never had to worry about things like that before on vacation but now I do. I guess it's the new reality.

 

[taylor3297]

Your situation is why the government has gotten involved. With the stuff that is passing through congress, the credit card company would have to give you something like 90 days notice before changing their limit. The companies are doing this to it seems like everyone. Even those of us who have excellent credit ratings. We had a company send us a letter stating that they had reduced our limit by $10,000. It was on a card we rarely used so we didn't worry about it. The only thing it affected was our debt to credit ratio. Our score probably dropped a couple of points because of this. Even though the credit score agencies are aware that this is happening to people with good credit, they aren't going to change the way they figure your credit score.

Since you have had a change you are entitled to a free credit report.

 

[a1tinkfans]

Your situation is why the government has gotten involved. With the stuff that is passing through congress, the credit card company would have to give you something like 90 days notice before changing their limit. The companies are doing this to it seems like everyone. Even those of us who have excellent credit ratings. We had a company send us a letter stating that they had reduced our limit by $10,000. It was on a card we rarely used so we didn't worry about it. The only thing it affected was our debt to credit ratio. Our score probably dropped a couple of points because of this. Even though the credit score agencies are aware that this is happening to people with good credit, they aren't going to change the way they figure your credit score.

Since you have had a change you are entitled to a free credit report.

 

[Kriii]

Honestly, the cc companies have put us in a no win situation. If you carry a balance and act responsibly, as the OP has, then you suffer a drop in FICO scores when available credit is cut. If you use credit monthly but pay off the ccs each month, you are going to start getting hit with yearly charges to carry the card or interest rates that start to accrue from the date of purchase. If you keep an "emergency" card that you never use, it may get yanked. I read in USA today that banks are starting to add a lot of extra fees to plain old checking accounts, for those who avoid cards and deal with cash. All of this from the same institutions that crammed ccs down our throats for years and extended credit to anyone with a pulse! Ridiculous!

 

[sameyeyam]

I know that many people are upset with cc companies. I know that everyone won't agree with me, but I think that part of our economic mess was due to credit cards. So many people were living above their means and using credit for everyday purchases instead of living within their means. (I'm not saying that anyone on here was doing that, just a general comment).

Heck my parents never even had a credit card until I was an adult! I remember my dad being upset when the car rental companies started requiring a credit card.

I have one credit card issued by my credit union and it has a $3,500 limit. That is more than enough to use in case of an emergency. Over the years they have tried to raise my credit limit, but each time I call and get the limit lowered. My credit score by the way is 806. Yes, 806! I have only ever had that one credit card. So you really don't need a wallet full of credit cards to have a good credit rating. My credit has consisted of my mortgage and a few car loans over the years.

Personally I have been kind of surprised by the reaction to the banks lowering and eliminating everybody's cc's. Credit (at least to me) should be something that is earned and should be used cautiously. Banks were handing out cc's with huge limits like they used to hand out toasters. The banks aren't stupid, this is unsecured debt. I think what happened is the banks realized their mistake (albeit a little late).

I guess I never really understood why banks were issuing credit cards to individuals with huge limits anyway (except for the fact that they wanted the interest money). But just because somebody sets a huge bowl of candy in front of me doesn't mean I have to eat the entire bowl.

Short term, yes it will mess up some people's credit scores. But if you've been financially responsible, then it won't mess it up that much. Long term I think it is a good thing both for individuals and for our economy.

I would also like to add for those of you facing cc problems, bank fees, etc...make a visit to a local credit union in your community. They have a much lower overhead, the members are usually the owners, fees are lower, etc...They don't tend to play games like the big mega banks do. They are local, you will get to know your banker and I feel they help guide you in making sound financial decisions, not getting into cc debt and in over your head.

 

[JoiseyMom]

I have to say, none of my credit cards have done that to me yet. I do pay them off in full every month though. It used to be they raised my limit every year and we would call and say no thanks!! I didn't need a 25k limit on a Discover card!!

We did have BOA shut down our HELOC though!! That pissed us off! We did appeal and they gave it back, but lowered it, which was fine. They claimed our house wasn't worth what it was when we got the limit (which is inaccurate!!). It's funny, we had a limit of 60k and had asked for it to be raised to 100k (this was a year ago when we knew DH was being laid off, and we wanted a cushion a safety net so to speak). Well they raised it to 193k!! Huh?? So they lowered it, but it is still higher then the 100k we initially wanted!!

What was funny was the entire shutting over and appeal and it being given back again was done totally without live human interaction. We got a letter, we had to fax them the appeal, then we got a letter in the mail saying we got it back. Makes you go hmmmm....

 

[carmie3377]

Personally I have been kind of surprised by the reaction to the banks lowering and eliminating everybody's cc's. Credit (at least to me) should be something that is earned and should be used cautiously. Banks were handing out cc's with huge limits like they used to hand out toasters. The banks aren't stupid, this is unsecured debt. I think what happened is the banks realized their mistake (albeit a little late).

What upset me was the fact they did it w/o any notice at all. Like I said earlier, the only reason it wasn't paid in full is because they offered 0%. I was letting my money earn a little interest since AMEX offered the 0%. Other than my mortgage and car, I don't pay interest. My main concern was not being prepared in the event it happened when I didn't have my debit card with me. I use credit cards responsibly by paying them off monthly (expect in the situation above). I have earned some awesome rewards (a few thousand $s worth over the last few years) using cards which is the reason I use them. And I do agree with you about credit cards being earned, I have earned my credit cards. While not quite as good as yours, it does hover in the 780-790s. While some people should have all their cards yanked (I know several people personally), I'm not one of them. If banks want to lower their risk, lowering my limit won't be lowering their risk. They can pull my bureau at any time and see absolutely zero late pays, zero overlimits, ect and low debt to available credit. So, if they eventually decide to do away with my business, they will lose money because I know they charge way more in merchant fees than the 1% they offer me.

I guess I never really understood why banks were issuing credit cards to individuals with huge limits anyway (except for the fact that they wanted the interest money). But just because somebody sets a huge bowl of candy in front of me doesn't mean I have to eat the entire bowl.

I've declined increases and cards. I'm no where eating the whole bowl. I'd be at Disney monthly (paying airfare, doing deluxe dining and resorts), be dressed in the finest designers, go out to eat all the time, ect, but I don't. I use my cards for bills, necessities, and the few luxuries (annual Disney trips, a night out with DH monthly, ect) I CAN afford to pay off. If I can't afford to pay it off, it doesn't get charged.

The responsible people like myself are paying for mistakes of others (both individuals and banks). So, while upset what is going on, I can always go to my debit card and still live the same comfortable lifestyle I'm enjoying. I'll lose my rewards, but it's not the end of the world.

 

[rflorek]

I know that many people are upset with cc companies. I know that everyone won't agree with me, but I think that part of our economic mess was due to credit cards. So many people were living above their means and using credit for everyday purchases instead of living within their means. (I'm not saying that anyone on here was doing that, just a general comment).

Heck my parents never even had a credit card until I was an adult! I remember my dad being upset when the car rental companies started requiring a credit card.

I have one credit card issued by my credit union and it has a $3,500 limit. That is more than enough to use in case of an emergency. Over the years they have tried to raise my credit limit, but each time I call and get the limit lowered. My credit score by the way is 806. Yes, 806! I have only ever had that one credit card. So you really don't need a wallet full of credit cards to have a good credit rating. My credit has consisted of my mortgage and a few car loans over the years.

Personally I have been kind of surprised by the reaction to the banks lowering and eliminating everybody's cc's. Credit (at least to me) should be something that is earned and should be used cautiously. Banks were handing out cc's with huge limits like they used to hand out toasters. The banks aren't stupid, this is unsecured debt. I think what happened is the banks realized their mistake (albeit a little late).

I guess I never really understood why banks were issuing credit cards to individuals with huge limits anyway (except for the fact that they wanted the interest money). But just because somebody sets a huge bowl of candy in front of me doesn't mean I have to eat the entire bowl.

Short term, yes it will mess up some people's credit scores. But if you've been financially responsible, then it won't mess it up that much. Long term I think it is a good thing both for individuals and for our economy.

I would also like to add for those of you facing cc problems, bank fees, etc...make a visit to a local credit union in your community. They have a much lower overhead, the members are usually the owners, fees are lower, etc...They don't tend to play games like the big mega banks do. They are local, you will get to know your banker and I feel they help guide you in making sound financial decisions, not getting into cc debt and in over your head.

 

[eliza61]

Honestly, the cc companies have put us in a no win situation. If you carry a balance and act responsibly, as the OP has, then you suffer a drop in FICO scores when available credit is cut. If you use credit monthly but pay off the ccs each month, you are going to start getting hit with yearly charges to carry the card or interest rates that start to accrue from the date of purchase. If you keep an "emergency" card that you never use, it may get yanked. I read in USA today that banks are starting to add a lot of extra fees to plain old checking accounts, for those who avoid cards and deal with cash. All of this from the same institutions that crammed ccs down our throats for years and extended credit to anyone with a pulse! Ridiculous!

It is ridiculous and insulting. Basically the banks are saying screw you, no matter what you do we are going to get our money. Hook or crook. I always say that if any other business did this to consumers we would have attorney generals across the nation suing out the wahzoo. I think Tony Soprano would cringe.

I've never been a get out of debt type of gal. I use my cc's and pay them off on time, but now I am making an extra effort to get out of debt simply because I don't like the industry's practices.

 

[eliza61]

I know that many people are upset with cc companies. I know that everyone won't agree with me, but I think that part of our economic mess was due to credit cards. So many people were living above their means and using credit for everyday purchases instead of living within their means. (I'm not saying that anyone on here was doing that, just a general comment).

I don't. Your making an assumption that may or may not be true.
Heck my parents never even had a credit card until I was an adult! I remember my dad being upset when the car rental companies started requiring a credit card.

I'm glad but that doesn't mean I should be screwed because your parents didn't use credit.

I have one credit card issued by my credit union and it has a $3,500 limit. That is more than enough to use in case of an emergency. Over the years they have tried to raise my credit limit, but each time I call and get the limit lowered. My credit score by the way is 806. Yes, 806! I have only ever had that one credit card. So you really don't need a wallet full of credit cards to have a good credit rating. My credit has consisted of my mortgage and a few car loans over the years.

So basically because you live this way we all have to and it's the only way we have to live. How did you get to decide if I need a wallet full of cards or not?

Personally I have been kind of surprised by the reaction to the banks lowering and eliminating everybody's cc's. Credit (at least to me) should be something that is earned and should be used cautiously. Banks were handing out cc's with huge limits like they used to hand out toasters. The banks aren't stupid, this is unsecured debt. I think what happened is the banks realized their mistake (albeit a little late).

I guess I never really understood why banks were issuing credit cards to individuals with huge limits anyway (except for the fact that they wanted the interest money). But just because somebody sets a huge bowl of candy in front of me doesn't mean I have to eat the entire bowl.

Short term, yes it will mess up some people's credit scores. But if you've been financially responsible, then it won't mess it up that much. Long term I think it is a good thing both for individuals and for our economy.

I would also like to add for those of you facing cc problems, bank fees, etc...make a visit to a local credit union in your community. They have a much lower overhead, the members are usually the owners, fees are lower, etc...They don't tend to play games like the big mega banks do. They are local, you will get to know your banker and I feel they help guide you in making sound financial decisions, not getting into cc debt and in over your head.

Sorry I sound abrupt but basically you are saying I have to live like you because it works for you. I object to that.

For me the issue is not whether or not you should have them or can handle them or if they cause the economic mess we are in now (by the way cc are a very small reason)

The issue for me is that we made an agreement. You issued me the credit, I obide by the terms of the agreement. Now for reasons that not only do you get to pick but the industry goes out of their way to be dishonest about.

That to me is illegal and immoral. I play by the rules, I play fair. When I go to Disney I pay X amount of dollars for X room and services. I don't want to get there and find they have changed the agreement.

I use the banks services (cc), I pay for the services (interest and annual dues if there are any). I expect the same level of service I signed up for.

The banks are doing this to recoup losses from the housing collapse. I am not about to allow them to screw me over because THEY made bad business decisions. I handle my credit and am responsible if I choose to have 10 cards and I can qualify and managed them I should not be penalized.

 

[DanceRC28]

Carmie, I agree with you 100%. None of our lines have been cut yet, but we have gotten notices that rates on a few of our cards are going up for no reason at all. Like you, DH and I pay our bills every month and don't charge things we can't afford. The funny part is that my sister who is 31 (I am 27) and still lives at home and can't manage to save a dime (even though my parents don't charge her anything to live there!), is getting approved for a mortgage and going to get an 8k check from the gov't! DH and I are $35k underwater on our mortgage and getting zero help from the gov't. They are screwing over the wrong people in all of this mess, the responsible ones!

 

[itutorfortravel]

1

 

[bumbershoot]

They said they reviewed my credit file and the reason was too many inquiries in the last 24 months. Okay, this was the last card I opened. I've not applied for anything since getting the Amex including utilities, ect. So how could my inquiries gone up since applying for the card?

Since you haven't applied for anything, but they are saying there are inquiries, you'd best contact the reporting agencies next! Sounds like something is going on. If something has happened with your credit without you doing it and you find out fast, then amex's decision might have saved you quite a bit of trouble!

 

[Mickey527]

I also had the same thing happen to me with AE.
I had a balance of over $3,000 and had been paying it on time, more than I owed. My interest was 6%. I came into some cash and decided to pay it off.
As soon as I did they cancelled me. I called back to try and get the card reinstated since I had never been late and liked AE for vacations (most car rental agencies give AE discounts). They wouldn't even discuss reopening.
I had a few other cards: Discover, Target, and my CU Visa who all closed my cards due to inactivity. I tried to reopen them and again was refused.
The only cards I have now are my two Disney Visa cards both with crazy interest reates, one is 19.99% and the other is 14.99%. I don't like using them but I will just so I don't have them closed ldue to inactivity too.
I am hoping that something will be done and these banks will be forced to either reinstate our cards or something.
I haven't checked my credit score recently but I am sure it is down alot due to the closing of 7 cards in the past 3 months.

 

[SanFranciscan]

Credit cards do not exist for the benefit of consumers. More than anything they have been a means for companies to raise prices to the moon without increasing wages.

I don't have credit cards. I have a debit card, but I rarely use it other than at the ATM machine. I have shredded credit offers from Washington Mutual for years. Since Chase bought Washington Mutual, I have had Chase offer me a credit card, which I declined. I am not interested in their "win a free purchase" sweepstakes, which their teller has tried to talk me into, because the deal depositors make with banks is that the banks make their money loaning the money that they get from their depositors interest-free. I shouldn't be obligated to give tons and tons of personal information to be sold all over the place without my permission or even my knowledge.

Make no mistake about it that Big Brother is, in fact, Big Banker. Even the data bases maintained for the alleged purpose of national security are really maintained for the benefit of credit card companies. Am I willing to walk through a metal detector before boarding an airplane? Of course. Am I willing to walk through the explosives detector before boarding an airplane? I objected to being singled out for that with no explanation, but I have no problem with it being mandatory for all now. What I am not willing to do is have everything from what I had for breakfast to my menstral (spelling?) cycle being everybody's business because everything is filed under our Social Security Numbers in some data base to benefit marketers no matter how loudly matters of national security is made the excuse used for the maintainence of such data bases.

Credit card companies are not the friends of consumers "responsible" or not. Asking any consumer whether they consider themselves responsible is like asking drivers whether they consider themselves to be good drivers anyway. What are the odds that anyone is going to answer that question with a "No"?

 

[carmie3377]

Since you haven't applied for anything, but they are saying there are inquiries, you'd best contact the reporting agencies next! Sounds like something is going on. If something has happened with your credit without you doing it and you find out fast, then amex's decision might have saved you quite a bit of trouble!

You're right! I hope nothing has happened but I know that it can. I will definitely be pulling my bureaus. THANKS!

 

[carmie3377]

Credit card companies are not the friends of consumers "responsible" or not. Asking any consumer whether they consider themselves responsible is like asking drivers whether they consider themselves to be good drivers anyway. What are the odds that anyone is going to answer that question with a "No"?

You'd be surprised. When I worked in banking, I processed loan applications daily. I used to have people come in asking for a loan and state "I probably won't be approved, but I'll give it a try" or something similar. We had our share of "Oh, I have great credit" coming back with 500 scores, but we did have some be honest about how lousy their credit really was.

 

[razor7874]

lol read all the posts in here and theres only a few people i agree with in this room. the people that say that credit cards are for emergencies and not a pass to buy everything you want when you cant afford it. the other people stating that they had their cc limits lowered and closed for no reason are kidding themselves. lol i have an amex and chase cards with about 20k limit and the amex with no preset limit and have not had them lower my limit they tried to raise my interest rates but when i told them i was going to close they lowered it right away! not to sound insensitive here but seeing how upset you guys are they lowered your limits you are probably very reliant on your ccs or having severe cash flow problems. cc companies will not close your accounts or lower your limits unless you miss payments or set up some serious red flags like applying for too much credit in a short amount of time and you have high balances. you can have the highest credit scores ie 780 but ive seen people with 800 scores that owe 30k and are almost maxed out on all their ccs. that doesnt make them a good credit risk does it? would you lend someone money if they had 30k in debt that they carried for 2 yrs? I wouldnt. Heres what i think banks look at, they dont care that you make your payments on time. I think they look at are you spending more than you are sending? if you use your cc for only groceries and spend 400 a month but only that people get send them 80 dollars for 6 months straight you would quickly acrue a 1920 balance. now i understand balances because they cant afford to pay their balances in full but seriously if you are doing it every month and not putting your credit card away you are setting yourself up fo a big fall. me for example i bought some living room furniture last yr for my house and spent 6k that i didnt have ive constantly paid 500 a month for 6mths and have my balance down to 2k and havent used it at all. now im not saying im rich because i am certainly not im a 3rd year resident and make less than most people in here but if i cant afford it i just dont buy lol with the exception of my furniture, but im committed to paying it off before i use my cc. I want people to know that im not on the banks side either i hate them for what they did to this country but seriously ive learned putting myself in someone elses shoes helps me see their pt of view. they gave money to people that they shouldnt have and now they have to fix the problem because the bankruptcy courts are erasing most peoples debts. I say if you hate the banks why are you making them rich? Leave the credit cards at home.

 

[aubriee]

lol read all the posts in here and theres only a few people i agree with in this room. the people that say that credit cards are for emergencies and not a pass to buy everything you want when you cant afford it. the other people stating that they had their cc limits lowered and closed for no reason are kidding themselves. lol i have an amex and chase cards with about 20k limit and the amex with no preset limit and have not had them lower my limit they tried to raise my interest rates but when i told them i was going to close they lowered it right away! not to sound insensitive here but seeing how upset you guys are they lowered your limits you are probably very reliant on your ccs or having severe cash flow problems. cc companies will not close your accounts or lower your limits unless you miss payments or set up some serious red flags like applying for too much credit in a short amount of time and you have high balances. you can have the highest credit scores ie 780 but ive seen people with 800 scores that owe 30k and are almost maxed out on all their ccs. that doesnt make them a good credit risk does it? would you lend someone money if they had 30k in debt that they carried for 2 yrs? I wouldnt. Heres what i think banks look at, they dont care that you make your payments on time. I think they look at are you spending more than you are sending? if you use your cc for only groceries and spend 400 a month but only that people get send them 80 dollars for 6 months straight you would quickly acrue a 1920 balance. now i understand balances because they cant afford to pay their balances in full but seriously if you are doing it every month and not putting your credit card away you are setting yourself up fo a big fall. me for example i bought some living room furniture last yr for my house and spent 6k that i didnt have ive constantly paid 500 a month for 6mths and have my balance down to 2k and havent used it at all. now im not saying im rich because i am certainly not im a 3rd year resident and make less than most people in here but if i cant afford it i just dont buy lol with the exception of my furniture, but im committed to paying it off before i use my cc. I want people to know that im not on the banks side either i hate them for what they did to this country but seriously ive learned putting myself in someone elses shoes helps me see their pt of view. they gave money to people that they shouldnt have and now they have to fix the problem because the bankruptcy courts are erasing most peoples debts. I say if you hate the banks why are you making them rich? Leave the credit cards at home.

Sorry not true! I have two credit cards. My BoA I use only for ebay purchases and pay it off on line a couple of times a month. I had a $19,000.00 limit on it, but never allowed it to get over $300.00, before paying it off. I received a letter last week saying they were lowering my credit limit to $9,000.00 and also raising my interest. Fine I just won't use the card anymore. My only other credit card is my Chase Disney Visa, that I used for everything except ebay. It has always had only a $7,000.00 limit. I pay it off every week. I have never carried a balance on either of my credit cards and don't intend to, so them raising my interest rate shouldn't bother me. It's just the principle of the thing. Why would they lower the limit and raise the interest on someone that never carries a balance? The only other debt I have is my house payment, my car is paid for, and again I keep a zero balance on my cc, so it's not like I'm living above my means. If I want a big money item, then I save up for it (currently saving up to add a covered deck onto my house. lol) If I want new furniture that is an item I would have saved up for. I have a good job (registered nurse) and am extremely financially responsible. I refuse to go into debt.

My mom has only a BoA card. She usually carries no more than $1000.00 balance on it and usually not that much. Her limit is like $10,000.00. She also got a letter last week saying they were lowering her limit to $7,000.00 and raising her interest. She always pays more than the minimum payment due. She called and asked them to lower her interest back down and they refused. They couldn't tell her why, just said they couldn't. She lives with me and the only debt she has is her car payment.

 

[punkin]

the other people stating that they had their cc limits lowered and closed for no reason are kidding themselves.

Completely untrue! I will not speak for Amex but Citi lowered my card's limit to 10% of what it was. I carry no balance and my credit is spotless. There really was no reason to lower my limit other than to decrease Citi's outstanding credit exposure. I do not hate them (it was a business decision), but it certainly had a negative effect on my credit scores by lowering my available credit through no fault of my own.