So I mentioned in this thread that I'd had a horrible experience with American Express and that I'd post up soon....so here it is.
American Express (AX) issued me a card with a 15,000 limit. Due to some extraordinary expenses, I had to carry a balance on it for a couple of months, to a total of about $6000. Then, while on a business trip I charged an $800 hotel bill and minutes later received an email from AX.
In this email, they advised me that my limit had been reduced to $6800 since I was using too much of my available credit. Note that the only change to my financial picture during the last 6 month period was making the charges on this account, and letting it build for 2 months.
Of course I immediately called them to inquire what was going on. In the ensuing conversation with 2 different representatives (the first one in India who had no clue), I was told that if I paid them $3000 they would restore my credit limit of $15,000. I blinked, thought a moment and slowly repeated to the representative:
Me: "So let me get this straight. AX authorized a $15,000 credit limit. Then when I used less than 50% of that authorized credit, AX reduced my limit because I was using too much of what they said I qualified for. Is that correct?"
AX Rep: "Yessir."
Me: "So now, if I pay $3000 then AX will restore my credit limit to $15,000, which I have just been told I could not use more than 50% of.
AX Rep: "Yes, sir that's what I am saying."
So I shook my head and verified that was what the rep was saying, rephrasing a bit to insure things were clear and I had heard right. I had.
Not only does this seem like some form of extortion to me, but is completely ludicrous to tell me It's ok to use something then when it is used, it's no longer ok. Simply amazing. Recall that my financial picture had not changed during this time, other than the charges on the AX.
End of the story is that was the only card I had carried for quite awhile and I needed it to complete the trip. I called back and had the next rep authorize a "temporary increase" to get me back home.
Once home, my first action was to cancel the account.
Member since 2013; never again will I patronize that company.
Never. Again.
American Express (AX) issued me a card with a 15,000 limit. Due to some extraordinary expenses, I had to carry a balance on it for a couple of months, to a total of about $6000. Then, while on a business trip I charged an $800 hotel bill and minutes later received an email from AX.
In this email, they advised me that my limit had been reduced to $6800 since I was using too much of my available credit. Note that the only change to my financial picture during the last 6 month period was making the charges on this account, and letting it build for 2 months.
Of course I immediately called them to inquire what was going on. In the ensuing conversation with 2 different representatives (the first one in India who had no clue), I was told that if I paid them $3000 they would restore my credit limit of $15,000. I blinked, thought a moment and slowly repeated to the representative:
Me: "So let me get this straight. AX authorized a $15,000 credit limit. Then when I used less than 50% of that authorized credit, AX reduced my limit because I was using too much of what they said I qualified for. Is that correct?"
AX Rep: "Yessir."
Me: "So now, if I pay $3000 then AX will restore my credit limit to $15,000, which I have just been told I could not use more than 50% of.
AX Rep: "Yes, sir that's what I am saying."
So I shook my head and verified that was what the rep was saying, rephrasing a bit to insure things were clear and I had heard right. I had.
Not only does this seem like some form of extortion to me, but is completely ludicrous to tell me It's ok to use something then when it is used, it's no longer ok. Simply amazing. Recall that my financial picture had not changed during this time, other than the charges on the AX.
End of the story is that was the only card I had carried for quite awhile and I needed it to complete the trip. I called back and had the next rep authorize a "temporary increase" to get me back home.
Once home, my first action was to cancel the account.
Member since 2013; never again will I patronize that company.
Never. Again.