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American Express - Improper lowering of line of credit

Credit Card Services - Complaint
Review by lacesfe on 2012-04-06
Rating: StarEmpty StarEmpty StarEmpty StarEmpty Star
EVERYWHERE, ALABAMA -- I am requesting your assistance with a matter that has apparently developed from new credit regulations resulting from the 2008/2009 credit crisis.

American Express has unnecessarily and inappropriately lowered my line of credit (LOC). This has caused a lowering of my debt to credit ratio and decreased my credit score as a result. If this is not illegal, it should be. Unless a person has exhibited a problem with their ability to pay the bill. ie, not paying bill or habitually paying bill late then they should NOT be able to lower your LOC based on some "hunch" that you are no longer able to maintain this LOC.

American Express hides behind so called changes in laws and regulations as a result of the 2008/2009 credit meltdown and refuses to reinstate former LOC. I’m sure it was not the intention of these laws to damage a persons credit, especially someone like myself who has a credit file since the mid 70’s with no late payments to American express and only two late payments ever and those were due to the bank dropping the ball with electronic payments and not making the payment, not because I couldn’t or didn’t make the payment. As soon as I discovered this issue, I immediately corrected it. I have also tried to get that removed from my credit file without success.

What can you do to get laws passed that make this practice illegal AND penalize the company and pay the consumer punitive damages? I want to see some fast action on this! If this has happened to you, won't you join with me and other consumers with this problem and complain long and loud to the legislatures in your area and get these laws repelled and replaced with strong consumer advocacy laws and regulations.
Comments:
Posted by DebtorBasher on 2012-04-06:
If they look at your credit report and see any change, or feel you don't make enough to cover your debts they will make changes to your account. Usually, that is done by raising the APR. To them, it doesn't matter if you are making all of your payments on time, in their head they feel you 'shouldn't be able' to pay on time.

Yeah, they punish those of us who pay without any issues month after month, year after year...yet they give all the breaks to the people who don't pay!
Posted by JISCal2 on 2012-04-06:
To tack on to what DB said above, this isn't new. This has been going on for years. They did it to me back in 2008. I closed my account and now they are begging me to come back. Don't need 'em. They can shove it.
Posted by MRM on 2012-04-06:
Thats right, tell them to hit the road jack, and dont cha come back no more, no more, no more!
Posted by trmn8r on 2012-04-06:
You are taking this very personally, and not considering the bank's point of view.

If banks that extend credit via LOCs and credit cards didn't have the ability to reduce it, there wouldn't be many left after awhile. I don't begrudge them acting on hunches, because in many cases the hunches are probably well founded.

We dodged a heck of a bullet a few years ago, and are fortunate so many institutions survived.
Posted by BigAl on 2012-04-07:
If you continue to carry a balance on your credit cards you are living above your means. If you diligently reduce your credit card debt to the extent that you no longer need to carry a monthly balance your standard of living will increase.
Posted by Nohandle on 2012-04-07:
I've never had an American Express credit card but a few years back there was quite a rumble from many who did. They found themselves, sometimes overseas, and discovered their LOC had been reduced with no prior notification. They had NEVER been past due and had paid their balance in full each month. There they were with no other credit card and up that well known creek. I was traveling a good bit during that time and although my cards are with Visa and MC had a really uneasy feeling. I don't know what I would have done because most places won't take an out of state check and I didn't have that much cash with me.
Posted by BigAl on 2012-04-07:
Whenever you are planning a trip overseas you should notify your credit card company because you may find out they are useless without prior notification. Debit cards are the same.

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