Amex Slashed Credit Limits

Fahim_2

Credit companies can get a copy of your credit report every month when they updates your report, so they can lend responsibly...

captainscarlett

Amex have gone one better with my accounts. I have 2 cards with a perfect credit record. They first cut my limits by 60% then when I complained they cancelled both the card with immediate effect. I am so angry that I have contacted The Mail on Sunday who are taking up the fight and want to hear from anyone else who has had bad treatment from Amex. The guy to contact is Richard Dyson and he is going to write a piece in this weekends paper, I hope to expose Amex for these crazy actions. Amex gave me some !!!!!! story about spending pattern and overall credit exposure. It sounds to me like they are doing this to lots of people.

netwalk wrote:

Help!

I have 3 Amex credit cards, a Blue, Gold & Platinum with credit limits of £7,800, £10,800 & £9,000 respectively. I have just been into online banking to print off my latest Platinum statement (the card I use the most) and find my limits have been reduced to £800, £1,100 and £1,800 respecively; a total credit reduction of £24,000!

Why? How? What? I have received no notification of this and my accounts have been run in perfect order. No late payments, no arrears, nothing. My Platinum card is used for all my day to day spending and paid off in full each month, my Gold had a 4.9% LOB transfer that I paid off last month and the Blue is rarely used. Looking at my records I have had an Amex account for at least 7 years!

I've not had any change in financial circumstances, my gross income is £45K+ and I own my own home. I wouldn't really miss the Gold or Blue cards but the Platinum is my equivalent of cash. With transactions I've already made that have yet to appear on my online statement I have already exceeded my vastly reduced credit limit. Can they do that? Can they charge me for exceeding it?

Before I phone them I need to calm down as I'm furious about this. I'm almost tempted to wait until they let me know in writing and then conduct everything in writing as I'm sure they will have made a mistake.

The only thing I have done differently recently is pay off my LOB transfer of £2,000 on my Gold card. Surely this cannot be a reason for slashing limits? I also posted on Friday that MBNA have reduced my credit limit on a card with them by £6,100 shortly after I paid off a LOB transfer with them as well. Coincidence surely?

What's happening? Julian.

M_Thomson

Firsttimebuyer wrote:

But can they search it without my consent? I have only consented to them searching it when opening the account, not whenever they feel like

If you read the terms and conditions of any credit card, they can search your credit report anytime they like. There are ways that banks can look without it leaving a footprint on your file.

Fahim_2

Companies can check customers credit file whenever they wants...but these kind of checks doesn't leave a footprint or doesn't affect your credit score....

Bargain_Rzl

I have *touch wood* not had any change to the limit on my Blue card.

However I am now a bit concerned that they will reduce my limit without notice, as it's currently £5,600 and I very very rarely spend more than £1000 a month (I pay it off in full). The worrying thing is that I am about to move house, and when I do, I'll be looking at spending approx £2k on appliances. I can do this out of my current account but am looking forward to getting the cashback points.

AQUA-IAN

Bargain_Rzl wrote:

I have *touch wood* not had any change to the limit on my Blue card.

However I am now a bit concerned that they will reduce my limit without notice, as it's currently £5,600 and I very very rarely spend more than £1000 a month (I pay it off in full). The worrying thing is that I am about to move house, and when I do, I'll be looking at spending approx £2k on appliances. I can do this out of my current account but am looking forward to getting the cashback points.

Another alternative would be to apply for an Argos card online ( instant approval ) and take advantage of the 9 months interest free option. Keep the money in your savings account to gather interest and then pay off in full before the interest free period ends.

M_Thomson

Fahim wrote:

Companies can check customers credit file whenever they wants...but these kind of checks doesn't leave a footprint or doesn't affect your credit score....

Yawn. I already said this in the post directly above yours.

Lopo

Lol . . . whats with the spotty oik smarmy post M Thomson !? Bit pointless and kiddish!

Back on topic....concerning changes going on it seems in the amex world. I've yet to see my near 19k limits over cards be changed - seems it may well happen at some point though. Have never done any BT's with it though in any way.

Suspicions would be that, yes they are clamping down a lot because there is a new rule financial institutions must comply with, has a name that I cant recall....think it begins with "B" ! Apparently for some reason it involves keeping in TOTAL as a cash reserve whatever potential credit has been given out.

This of course naturally would be a disgustingly massive figure across a financial credit user base ! Understandably, if this is the driving factor, it makes sense why any provider would want to slash their lending overheads.

Knocking credit down to nil or a paltry 10% of the original limit in most cases its madness and shocking stuff though.

Hope its not a sign of things to come...

Lopo

Lopo

I remembered, its called - Basel II

Capital requirements rules state that credit institutions, such as banks and building societies, must at all times maintain a minimum amount of financial capital available. This is in order to cover the credit risks to which they are exposed.

The aim being to ensure the financial soundness and stability of institutions, and to maintain customer confidence in the solvency of them, and to ensure the stability of the financial system at large

Also to protect depositors against losses!

Lopo

netwalk

captainscarlett wrote:

Amex have gone one better with my accounts. I have 2 cards with a perfect credit record. They first cut my limits by 60% then when I complained they cancelled both the card with immediate effect. I am so angry that I have contacted The Mail on Sunday who are taking up the fight and want to hear from anyone else who has had bad treatment from Amex. The guy to contact is Richard Dyson and he is going to write a piece in this weekends paper, I hope to expose Amex for these crazy actions. Amex gave me some !!!!!! story about spending pattern and overall credit exposure. It sounds to me like they are doing this to lots of people.

Anyone know what the Mail on Sunday says today about Amex treating their customers so badly? Is there anything online?