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IndyPoolPlayer

Amex CLD "Minimal Usage" is the excuse

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DW received a letter today on her Amex BCE cutting her CL in half from $30K to $15K. The excuse given was "Minimal usage on the card over the past 12 months"

 

I recall this very same excuse back in the Credit Meltdown when my Amex was balance chased down to $2900.

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3 hours ago, IndyPoolPlayer said:

DW received a letter today on her Amex BCE cutting her CL in half from $30K to $15K. The excuse given was "Minimal usage on the card over the past 12 months"

 

I recall this very same excuse back in the Credit Meltdown when my Amex was balance chased down to $2900.

 

What was her actual usage?

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Amex (somehow) found out IPP is unemployed?

 

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Posted (edited)

There are some who would say this is subprime lender if it was a credit union that did this, or Discover.

Edited by ccn3

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16 minutes ago, ccn3 said:

There are some who would say this is subprime lender if it was a credit union that did this, or Discover.

 

We do not know all -- or even most -- of the details.  There's no reason at this point to believe this is going to be a CLD campaign.  

 

I have checked my AmEx accounts and no problems at all.  I have a couple of cards that have seen but 4 $25 charges apiece over a twenty year period.  If anybody were gong to be a victim, it would be me.  

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Concur that more information is needed to know if this will be an AXP (and other issuer) pattern in coming months.  That being said, however, I have no qualms with banks slashing lines where an account is not being used.  They have to have the capital reserves for the lines they issue, and they would rather see the credit they extend going to people who will actually USE the card. 

 

Using a card obviously does not require one to revolve a balance, although the banks will always hope that a consumer DOES revolve since that is where they make a good chunk of their earnings.  I was just looking at some accounts with other issuers and making purchases on the cards that had seen no activity across the past six months.  Another variable to consider (not just with AXP) is that some lenders do not always update monthly where there is no activity, and regular reporting is a key piece of the score.  Thus a periodic use of the card will be worth a few points on the score...which in turn helps to feed the score-driven ego :)

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A couple of observations:  It was widely reported in November that Capital One and Discover were looking to cull their herds of inactive accounts, whether through reduced CL's or closure.

 

While I hardly count Amex in their league, Amex has never been entirely comfortable with consumer credit (far preferring the more secure "T&E" segment).   Amex pretty much tossed their cookies over the 2008-2011 debacle when it came to consumer delinquencies/write-offs.  So it wouldn't surprise me that Amex might start looking to trim back on loss exposure now that the stability of the current economy has fallen under question.

 

Since action is merely precautionary at this point, I expect anyone with 720+ FICO's can rest easy now.  However, if your credit is weaker, it might not hurt to give any softly utilized Amex account a firm workout for a month or two -- merely as a counter precaution.

 

 


 

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1 hour ago, PotO said:

 

We do not know all -- or even most -- of the details.  There's no reason at this point to believe this is going to be a CLD campaign.  

 

I have checked my AmEx accounts and no problems at all.  I have a couple of cards that have seen but 4 $25 charges apiece over a twenty year period.  If anybody were gong to be a victim, it would be me.  

Someone reported that customer service told them they are doing "right sizing" for accounts with minimal spending.

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2 hours ago, ccn3 said:

Someone reported that customer service told them they are doing "right sizing" for accounts with minimal spending.

good for those of us needing CLI from amex and other super-prime issuers.

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1 hour ago, hegemony said:

good for those of us needing CLI from amex and other super-prime issuers.

😁 I'm not complaining. I just think it's funny how nobody cares when Amex does this, but if it was NFCU, Discover, Penfed, USAA, or Cap1 you'd have people on here saying this is why you shouldn't deal with these subprime lenders.

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18 minutes ago, ccn3 said:

😁 I'm not complaining. I just think it's funny how nobody cares when Amex does this, but if it was NFCU, Discover, Penfed, USAA, or Cap1 you'd have people on here saying this is why you shouldn't deal with these subprime lenders.

not exactly. amex has historically been a poster child for crapflake complaints about THEFTING. see https://creditboards.com/forums/index.php?/topic/317751-amex-has-not-touched-any-of-my-accts-yet-thread/&tab=comments#comment-2923771

 

and the classic whining seen here: https://creditboards.com/forums/index.php?/topic/366238-thoughts-on-amex-branded-cards/&tab=comments#comment-3407577

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47 minutes ago, hegemony said:

At least nobody was calling AMEX subprime for it.

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35 minutes ago, hegemony said:

why would they?

Why not? It's not like AMEX is more prime than some of the others that people like to call subprime. 

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7 hours ago, ccn3 said:

Someone reported that customer service told them they are doing "right sizing" for accounts with minimal spending.

 

If I had a nickel every time someone stated that customer service gave them groundbreaking news and in the end it was all a crock of sh!t I'd have more money than Buffet.  

Edited by PotO

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4 hours ago, hegemony said:

Ancient threads from over a decade ago.....

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