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Amex slashing limits?


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If its true they are slashing credit limits, its entirely possible its a short-term thing.

 

From an article in today's WSJ, the markets for short-term credit almost shut-down mid-week. People were pulling money fast from money market accounts. Big corporations use the short-term credit markets to fund their operations. I suspect, but don't know, that Amex does this too.

 

So, it could well be that Amex cut people limits becuase Amex was afraid it could't get the money to fund people's charges.

with the announced government bail-out and guarantee on money market accounts, the problems in the short-term credit markets should dissipate.

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If its true they are slashing credit limits, its entirely possible its a short-term thing.

 

From an article in today's WSJ, the markets for short-term credit almost shut-down mid-week. People were pulling money fast from money market accounts. Big corporations use the short-term credit markets to fund their operations. I suspect, but don't know, that Amex does this too.

 

So, it could well be that Amex cut people limits becuase Amex was afraid it could't get the money to fund people's charges.

with the announced government bail-out and guarantee on money market accounts, the problems in the short-term credit markets should dissipate.

Will people really take a CLD for 6 or 12 months and then KISS THE FEET OF AMEX when they give them the credit limits back???

 

Why bother to do the CLD in the first place if it is only a short-term thing???

 

A CLD IS AN INSULT (take it or leave it)

 

I'm not going to THANK THEM FOR IT

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A 30 day card is short for an installment card. PIF card as Jorge put's it.

We started out with a Green and than a Gold becuase benefits are better, than actual credit card from AE.

If they want PIF cards than they should stick to that, they obvious issued credit cards for a reason like all the rest.

So stick to pif cards and don't bother with blue cards and all that others, they already slashed the benefits so what's the point.

I think I am going to just close them all and tell them to F-OFF

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A CLD IS AN INSULT (take it or leave it)

 

I'm not going to THANK THEM FOR IT

 

 

Heres what I think of if or not it is an "insult" argument...

 

Say you went to a car dealership and they ran your credit and told you you could have any car on the lot with your credit. So, you took your time and looked at all the cars and finally, after spending all day looking you picked out the car of your dreams. Excited, you wait by the door for the keys, and then the sales manager comes out and says "We don't like the way you shopped for the car. In our experience, the people that picked out the car you picked out were repoed at a higher rate. Even though your credit is exactly the same as when we pulled it hours ago, the bank is now only willing to finance you $2k. This qualifies you for this 1995 toyota tercel we have in the back of our lot." Would you be insulted? I would. Just because its the banks money doesn't mean it can't be insulting..

 

Bottom line, don't approve me at first for a certain amount and then CLD me based on some overly complex risk model based on what other people have done....if you want to keep my business. But thats amex's whole thing isnt it? They really dont care. And I think that might tick people off more than the AA.

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If its true they are slashing credit limits, its entirely possible its a short-term thing.

 

From an article in today's WSJ, the markets for short-term credit almost shut-down mid-week. People were pulling money fast from money market accounts. Big corporations use the short-term credit markets to fund their operations. I suspect, but don't know, that Amex does this too.

 

So, it could well be that Amex cut people limits becuase Amex was afraid it could't get the money to fund people's charges.

 

Absolutely not the case. Amex core business is still as a transaction card, not a credit card. They expanded into credit cards given the additional profit opportunity. But as soon as they're default rate rose moderately at the beginning of this economic turndown, they restricted the spigot. They aren't willing or interested in absorbing the risk that other card issuers have. The CLD horror stories started circulating long before things got dicey last fall.

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I checked mine this morning. Since they CLD'd me last month by capping my Gold Card at $1300, Reducing my HHonors card by $2k and cutting my Blue card by 50% I was thinking they couldn't go much lower. I cancelled my Blue Card and as soon as they give me the 7500 MR points they owe me the Gold card goes bye-bye. Amex is just as bad as BofA when it comes to this game. Bof A would constantly give me CLI and then CLD 2 months later. I have never had that issue with Citi or chase.

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Called AMEX and went to battle, they claim that becuase the credit dipped below a 700 fico they took there CLD action.

I argued that I am looking at all three bureus while on the phone and there has not been a late pay for over 6 years.

They stand firmly and say that experian shows serious deliquency and maxed out Chase heloc account, I say not true so they ask me to fax a copy of

report.

Should I go through all of this BS?

My biggest concern is that since Hilton AE is reporting $8,200 balance and with a new CL of $8,400 it will show almost 99% utilized! Wow once October reporting hits it will drop the 698 experian fico even lower, this will most certainly trigger BOFA and Possibly CITI to CLD as well.

I think I will just pay down $5,000 asap than play amex little "fax me the report" game

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A CLD IS AN INSULT (take it or leave it)

 

I'm not going to THANK THEM FOR IT

 

 

Heres what I think of if or not it is an "insult" argument...

 

Say you went to a car dealership and they ran your credit and told you you could have any car on the lot with your credit. So, you took your time and looked at all the cars and finally, after spending all day looking you picked out the car of your dreams. Excited, you wait by the door for the keys, and then the sales manager comes out and says "We don't like the way you shopped for the car. In our experience, the people that picked out the car you picked out were repoed at a higher rate. Even though your credit is exactly the same as when we pulled it hours ago, the bank is now only willing to finance you $2k. This qualifies you for this 1995 toyota tercel we have in the back of our lot." Would you be insulted? I would. Just because its the banks money doesn't mean it can't be insulting..

 

Bottom line, don't approve me at first for a certain amount and then CLD me based on some overly complex risk model based on what other people have done....if you want to keep my business. But thats amex's whole thing isnt it? They really dont care. And I think that might tick people off more than the AA.

"IF" you don't think it is an INSULT..then YOU forget the INSULT part...I AM STILL NOT GOING TO THANK THEM FOR IT

Edited by GEORGE
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A CLD IS AN INSULT (take it or leave it)

 

I'm not going to THANK THEM FOR IT

 

 

Heres what I think of if or not it is an "insult" argument...

 

Say you went to a car dealership and they ran your credit and told you you could have any car on the lot with your credit. So, you took your time and looked at all the cars and finally, after spending all day looking you picked out the car of your dreams. Excited, you wait by the door for the keys, and then the sales manager comes out and says "We don't like the way you shopped for the car. In our experience, the people that picked out the car you picked out were repoed at a higher rate. Even though your credit is exactly the same as when we pulled it hours ago, the bank is now only willing to finance you $2k. This qualifies you for this 1995 toyota tercel we have in the back of our lot." Would you be insulted? I would. Just because its the banks money doesn't mean it can't be insulting..

 

Bottom line, don't approve me at first for a certain amount and then CLD me based on some overly complex risk model based on what other people have done....if you want to keep my business. But thats amex's whole thing isnt it? They really dont care. And I think that might tick people off more than the AA.

"IF" you don't think it is an INSULT..then YOU forget the INSULT part...I AM NOT GOING TO THANK THEM FOR IT

 

i'm surprised it took this long :rofl: :rofl:

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AMEX was the first big financial to develop a 'knowledge based' computer system. Back in the ole days we called them 'artificial intelligence' systems.....stupid name.

 

Anyway I attended a CISR Summer Session at MIT (kinda' a summer camp for techie geeks....this was years ago) when AMEX gave its first presentation. This was before they had multiple cards. I think they had 3 then...green, gold and platinum.

 

Anyway their computer system tracks your spending "Patterns." At that time there was no CLs on AMEX cards. IF a customer who used their card mainly for business travel, for example, decided to buy spouse a Rolex watch....that would be considered 'out of pattern' and the customer would have to talk with an AMEX employee before the charge would be approved.

 

Fast forward a gazillion years.....AMEX prolly knows how many rolls of toilet paper you stok at home (a tad hyperbolic but you get my drift). So they are using their VERY sophisticated system to monitor their customers spending patterns. If all of a sudden their cards are being used to buy groceries, pay necessity bills....charges way out of pattern and indicative that the customer is usig the card for things that they should be charging on their debit cards.....those customers will prolly get a CLD.

 

Some CC issuers are cancelling cards customers are not using.....your sock drawer cards. So don't be surprised if one of those gets cancelled. I had my WAMU in the sock drawer. I just used it in hopes they don't cancel me. WAMU's retail banking side is doing just fine. They are betting the family farm that it is the retail side that will help them limp through this debacle.

 

End of long winded story,

 

savemanatees

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AMEX was the first big financial to develop a 'knowledge based' computer system. Back in the ole days we called them 'artificial intelligence' systems.....stupid name.

 

Anyway I attended a CISR Summer Session at MIT (kinda' a summer camp for techie geeks....this was years ago) when AMEX gave its first presentation. This was before they had multiple cards. I think they had 3 then...green, gold and platinum.

 

Anyway their computer system tracks your spending "Patterns." At that time there was no CLs on AMEX cards. IF a customer who used their card mainly for business travel, for example, decided to buy spouse a Rolex watch....that would be considered 'out of pattern' and the customer would have to talk with an AMEX employee before the charge would be approved.

 

Fast forward a gazillion years.....AMEX prolly knows how many rolls of toilet paper you stok at home (a tad hyperbolic but you get my drift). So they are using their VERY sophisticated system to monitor their customers spending patterns. If all of a sudden their cards are being used to buy groceries, pay necessity bills....charges way out of pattern and indicative that the customer is usig the card for things that they should be charging on their debit cards.....those customers will prolly get a CLD.

 

Some CC issuers are cancelling cards customers are not using.....your sock drawer cards. So don't be surprised if one of those gets cancelled. I had my WAMU in the sock drawer. I just used it in hopes they don't cancel me. WAMU's retail banking side is doing just fine. They are betting the family farm that it is the retail side that will help them limp through this debacle.

 

End of long winded story,

 

savemanatees

SPEND TOO MUCH...you get a FR/CLD

 

SPEND TOO LITTLE...you get a CLD/CLOSED CARD

 

That helps the bottom line of AMEX doesn't it???

Edited by GEORGE
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...

Anyway their computer system tracks your spending "Patterns." At that time there was no CLs on AMEX cards. IF a customer who used their card mainly for business travel, for example, decided to buy spouse a Rolex watch....that would be considered 'out of pattern' and the customer would have to talk with an AMEX employee before the charge would be approved.

 

Fast forward a gazillion years.....AMEX prolly knows how many rolls of toilet paper you stok at home (a tad hyperbolic but you get my drift). So they are using their VERY sophisticated system to monitor their customers spending patterns. If all of a sudden their cards are being used to buy groceries, pay necessity bills....charges way out of pattern and indicative that the customer is usig the card for things that they should be charging on their debit cards.....those customers will prolly get a CLD.

...

savemanatees

Of course, the difficulty is that many large purchases

ARE out of the pattern. I need to buy a new computer,

I don't buy one every month ... or even every year, so

I won't use Amex.

 

Other things that I do not buy on a monthly basis:

- a new transmission

- air travel

- tires

- Christmas trees

- root canal surgery

- etc.

 

I used to love the "Sign and Travel" privilege on my Amex

Green card. But since I fly so rarely, it seemed that every

air ticket I charged on Amex caused them to "suspend"

my Sign+Travel privilege. After I paid in full, and three

months went by. they would "reinstate" the privilege ...

until I tried to buy another air ticket.

 

Sure, they have the right to restrict access to their card.

And I have the right to reach for Capital One ... despite

their "bad" reputation, Cap. One never ratejacked, never

cut my credit line, never refused a charge and never even

annoyed me. Amex may be "best of breed," but they are

losing my business.

 

ER

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"IF" you spend $X00 or $X,000 each month then you have to spend $XX,000 for any reason...IT HAS TO BE A RED FLAG

EVEN IF YOU HAVE NEVER BEEN LATE IN 30+ YEARS AND NEVER LATE SINCE 1999 WITH AMEX

 

I think AMEX needs to start offering $200 cards like TARGET "GUEST" CARDS

 

Then you could give a MASSIVE $300 CLI after a period of time

Edited by GEORGE
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Sure, they have the right to restrict access to their card.

And I have the right to reach for Capital One ... despite

their "bad" reputation, Cap. One never ratejacked, never

cut my credit line, never refused a charge and never even

annoyed me. Amex may be "best of breed," but they are

losing my business.

 

ER

 

 

:lol: Nicely put

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Sure, they have the right to restrict access to their card.

And I have the right to reach for Capital One ... despite

their "bad" reputation, Cap. One never ratejacked, never

cut my credit line, never refused a charge and never even

annoyed me. Amex may be "best of breed," but they are

losing my business.

 

ER

 

 

:lol: Nicely put

+1

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I do not have an AMEX. After being on Sanford Weil's NYC Blood Drive team.....he was such an s of a w I cancelled my card then and there.

 

I don't think he missed my bizness....but I knew I left home without it every day and lived just fine, tyvm.

 

sm

 

You do go way back. Sandy Weil hasn't been with Amex for a long time. Most people know him from his Citi days (but that's mostly because they're just too young to remember Sandy being anywhere else).

 

I'm obviously getting up there in years now if I remember Weil during the mid '80s.

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AMEX was the first big financial to develop a 'knowledge based' computer system. Back in the ole days we called them 'artificial intelligence' systems.....stupid name.

 

Anyway I attended a CISR Summer Session at MIT (kinda' a summer camp for techie geeks....this was years ago) when AMEX gave its first presentation. This was before they had multiple cards. I think they had 3 then...green, gold and platinum.

 

Anyway their computer system tracks your spending "Patterns." At that time there was no CLs on AMEX cards. IF a customer who used their card mainly for business travel, for example, decided to buy spouse a Rolex watch....that would be considered 'out of pattern' and the customer would have to talk with an AMEX employee before the charge would be approved.

 

Fast forward a gazillion years.....AMEX prolly knows how many rolls of toilet paper you stok at home (a tad hyperbolic but you get my drift). So they are using their VERY sophisticated system to monitor their customers spending patterns. If all of a sudden their cards are being used to buy groceries, pay necessity bills....charges way out of pattern and indicative that the customer is usig the card for things that they should be charging on their debit cards.....those customers will prolly get a CLD.

 

Some CC issuers are cancelling cards customers are not using.....your sock drawer cards. So don't be surprised if one of those gets cancelled. I had my WAMU in the sock drawer. I just used it in hopes they don't cancel me. WAMU's retail banking side is doing just fine. They are betting the family farm that it is the retail side that will help them limp through this debacle.

 

End of long winded story,

 

savemanatees

 

I would never charge groceries (or anything else, but that's another story) on my debit card. They are a bonus category on many cards and for the first year I'm getting 6% back on my Citi! I think even the Amex cards have bonus points for groceries. They want you to buy your everyday items on their cards.

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I do not have an AMEX. After being on Sanford Weil's NYC Blood Drive team.....he was such an s of a w I cancelled my card then and there.

 

I don't think he missed my bizness....but I knew I left home without it every day and lived just fine, tyvm.

 

sm

 

You do go way back. Sandy Weil hasn't been with Amex for a long time. Most people know him from his Citi days (but that's mostly because they're just too young to remember Sandy being anywhere else).

 

I'm obviously getting up there in years now if I remember Weil during the mid '80s.

 

Thanks... I really needed that... :)

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I do not have an AMEX. After being on Sanford Weil's NYC Blood Drive team.....he was such an s of a w I cancelled my card then and there.

 

I don't think he missed my bizness....but I knew I left home without it every day and lived just fine, tyvm.

 

sm

 

You do go way back. Sandy Weil hasn't been with Amex for a long time. Most people know him from his Citi days (but that's mostly because they're just too young to remember Sandy being anywhere else).

 

I'm obviously getting up there in years now if I remember Weil during the mid '80s.

 

Thanks... I really needed that... :)

 

Stryker, you're getting up there in age with me. Sorry, pal.

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I do not have an AMEX. After being on Sanford Weil's NYC Blood Drive team.....he was such an s of a w I cancelled my card then and there.

 

I don't think he missed my bizness....but I knew I left home without it every day and lived just fine, tyvm.

 

sm

 

You do go way back. Sandy Weil hasn't been with Amex for a long time. Most people know him from his Citi days (but that's mostly because they're just too young to remember Sandy being anywhere else).

 

I'm obviously getting up there in years now if I remember Weil during the mid '80s.

 

Thanks... I really needed that... :)

 

Stryker, you're getting up there in age with me. Sorry, pal.

 

Never heard of Sandy before. Ever.

 

Are you talking about Travolta's love interest in Grease?

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http://finance.yahoo.com/banking-budgeting...e-Grows-Tighter

An economy propelled by easy credit for more than a decade is fraying as credit disappears. American Express, to take one striking example, is reducing the maximum credit limit for half of its tens of millions of cardholders.

 

 

From a current fatwallet discussion (link), some additional information:

 

 

Date Posted: Sep/20/2008 5:37 PM

 

Doing a little more research -- Washington Post article

 

Post article said:

 

"American Express spokeswoman Kim Forde said the company typically adjusts less than 20 percent of its customers' credit limits annually. Traditionally, 80 percent of those adjustments are to raise the limit, while the remainder are decreased. That ratio began changing in October and now sits at about 50-50."

 

So, this isn't exactly what was printed in the Times article, maybe they got it wrong. It does illustrate that AMEX is lowering credit limits much more frequently though.

Edited by persevering
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