College Student Calls Amex Executive Customer Service, Gets His Limit Reinstated
Jon, like many American Express customers, had his credit limit slashed without warning recently. What he did next makes us feel all warm and fuzzy about our jobs here, because he found the necessary contact info buried in a post from 2007. Here's his story, proof that sometimes persistence pays off.
I wanted to share a small but meaningful customer service success story I owe in part to you. As has become increasingly common in recent weeks and months, I received notice from American Express notifying me that my credit limit was being slashed from $3,200 (I'm a college student with little income) to $1,000. Not a huge deal, but still an unnecessary blow to my credit score. I received the e-mail notice on 4/26 and called immediately to find out why and to learn what my options were in terms of challenging the decision. I was transferred to an "account specialist" but between the accent and less-than-stellar support provided I suspect it was just typical outsourced off-hours junk support.
The woman ran through a list of reasons why I had my limit reduced, none of which, it seemed, applied to me at all. My credit situation has not changed much in the past year, if anything, it has improved. I never make payments late, and I never carry a balance. Sensing my growing frustration and knowing she had no power to get what I wanted done, the woman says, and this is close to a direct quote "Well sir, I'm looking at your account and it does appear you have a good credit score. Why don't you call back during our normal business hours and they can help you appeal this decision." I hung up.
Two days later, I called during "normal business hours" and spoke with a CSR and eventually got to her manager. They both said my account was "ineligible" to protest the decision. I pressed for a reason why I was ineligible and never got a straight answer, just repeated BS about why the limit was reduced. "Tough times sir, we all need to make sacrifices." I wasn't interested in a lecture so I hung up again and headed over to Consumerist to do a little digging on past experiences with American Express.
Sure enough, a post from 2007 with a phone number to the executive customer service office. Now four days after my receipt of the e-mail, I contacted the number provided by Consumerist. I spoke with a gentleman who sounded like he could get things done. He reviewed my account and said that I was definitely "worthy" to have my decision reviewed. The next business day I received a message from him notifying me the credit limit had been restored! VICTORY!
I sense that the credit card companies are just initiating blind, blanket limit reductions and in many cases the reduction is not fair. Thank you Consumerist for providng an invaluable resource and great entertainment. Keep it up!
We also have another post of email addresses to Amexecutives. Be sure to try them both if you've got a problem you think they should be able to resolve if only they heard all the details.
"13 American Express Executives' Email Addresses"
"Reach American Express Executive Customer Service"
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Comments:
On their credit cards, yup. On their traditional charge cards, no.
@jdmba: On amex credit cards, like Blue, Clear and the Hilton/Starwood/Delta/Jetblue cards.
Amex charge cards (green, gold, platinum) don't have fixed limits- but they don't allow you to carry a balance, either.
@jdmba: Yup. Not all Amex cards are charge cards. Most are regular ol' credit cards that have interest rates,fees and penalties if you so choose not to pay off your balance in full every month. I have a Blue card with a $2500 limit that I got as a student that was converted to a regular Blue card after I graduated. My APR has jumped to about %22 so I won't be missing a payment any time soon.
@jdmba: Amex has both credit and charge cards. The credit cards have limits, but don't need to be paid in full each month. (I'd imagine the charge cards have some degree of reason aspplied to your monthly total as well).
Sorry to disillusion you, but there certainly is a credit limit on their traditional charge cards. It's just not a "preset limit" --- It's a case-by-case limit.
Try taking your traditional Amex charge card and make some large purchases. See how quickly they start to decline your purchases...
They ALL have limits.
What upsets me the most is the fact they (credit card companies, not just Amex) are effectively lowering hard earned credit scores for no reason. So you do your best, be responsible, pay on time, don't go over limit and one day your limit goes down and with it your credit score.
I have an Amex credit card and my limit is $20K but I have a feeling that won't last for too long...
BoA just lowered the limit on our Visa card, though not as drastically as I'd imagined they would. I think it was about a 25-30% reduction. I don't think we've ever exceeded 20% balance on this card, so it doesn't affect us that way, but it *might* impact our credit scores.
Nice Job! That's the way to be persistent and get things done.
There's an awful lot of people who come on here to bitch and moan about how they've been mistreated, but here's a young, bright college student who took matters into his own hands.
I'd say that college education is paying off. Be proactive about finding solutions to the problem and don't give up until you get what you want. A great lesson for all "consumerists."
And to add... I'd say the no preset limit/secret squirrel exposure limit that you might just be able to get them to slip up and tell you (or find out by yourself by buying stuff until they won't let you buy any more stuff) might just be more of a pain in the arse than yer actual, published credit limit on a credit card product. At least if AmEx decides to slash the limit on your credit card, you'll know about it if you check your account online... whereas unless they go for the full-on "hard limit on a charge card" treatment, the only way you'll know your Green/Gold/Plat has had its invisible limit cut is when you find the card doesn't work anymore. No thanks!
@AgitatedDot: your credit score can only lower if you have a balance. it's a ratio of what you owe to the max borrowing you can do with your current credit.
WHY fight so hard to stay a customer of these douchebags? Real credit cards can be had with less (admittedly not zero these days, but less) of the "we-hate-our-customers" behavior. They're called Visa and Mastercard, and you can get them from your local credit union, or any one of thousands of banks. AMEX adds no value compared to a real credit card. Sure, they used to 20 years ago, but yeah not anymore. Get over them, they're obviously so over their customers.
@AgitatedDot:
The card companies DO have good reasons to tighten total approved loan values (which is exactly what a credit limit is). The company has to keep track of how much money it has loaned out there and be able to justify having an adequate cash on hand to keep doing business (i.e. paying the people you owed and instead charged). In a recession they may desperately need to reel in these numbers so they can keep a lower amount of (liquid) operating cash on hand.
@West Coast Secessionist: I got the same letter as the OP last week... from BofA MasterCard. They ALL do it. It's not just an Amex thing.
(FWIW, I am in the same boat as the OP too - never carry a balance, great credit score, did nothing wrong... and still got my credit limit slashed.)
No. No. Jon. Haven't you learned anything in college? You need to get less credit, not more. These guys were doing you a favor. Listen to them. Pay off all those 33% balances, then throw out the cards.
Yeah, then try to buy a house with your newly destroyed credit. Credit and debt aren't the same thing, you know. Paying off balances = a good plan. Destroying cards/closing accounts = not so much. Why do that unless you're someone who really, really doesn't have the willpower not to rack up a ton of debt?
@MsAnthropy: Banks have done a great job convincing people that unless you ALWAYS have a credit card, you'll never be able to secure a loan for a car, house, etc., at a decent rate. This could not be further from the truth.
During the very short period of time that I worked at a car dealer, on more than a few occasions, someone would come in there that didn't have one single recent account from the past 10 years (usually their last debt was the car they were driving). Why? They had no debt. Their house was paid off and they had sworn off credit cards. Yet they were still approved at the best rate possible instantly. Truth be told, as long as you have a HISTORY of paying your bills on time and enough income to pay the loan your requesting, banks are not going to give you much hassle.
Push comes to shove, a couple of phone calls and some documentation of income may be required if you don't have a credit history to speak of but have a very good income. Banks don't like doing this on anything less than a mortgage because it is a pain in the butt, but if they want your business, they'll make it happen.
Banks want you to keep accounts open because they know if they're open, you're more likely to use them, which makes them money. Even if you are in the habit of paying off a credit card every month, they know the odds are in their favor over the long haul that something will come up one month and you'll carry a balance over.
All of these limit reductions are very interesting to me. I have two Chase Visas and a Discover card. None of those three cards have had their limits reduced yet. If anything, over the past year, both Visas have had their limits increased on the order of $200-$400. Maybe I'm just in a "good" market area.
@barty: I'm sure those years of paying a mortgage helped in those cases.
If you've been renting for years, you're not going to have that history of paying things off.
@Daniel Garcia Castellanos: The credit card companies often report to credit agencies during the billing period, not necessarily after you've paid your balance down to zero, so they're virtually always showing some kind of balance even if you pay off every month in full.
Go run your credit report right now, and you'll see what I mean (if you have a credit card that you've spent money on recently).
WHY fight so hard to stay a customer of these douchebags? Real credit cards can be had with less (admittedly not zero these days, but less) of the "we-hate-our-customers" behavior. They're called Visa and Mastercard, and you can get them from your local credit union, or any one of thousands of banks.
How do you define a "real credit card?" My AMEX Blue Cash has an APR, I can pay in full or carry a balance, and I have a preset spending limit.
I think you're operating on the long-outdated notion that all AMEX cards are charge cards that must be paid in full every month. Green, Gold, Platinum, Centurion, etc. - yes. Blue, Clear, Skymiles, etc. - no.
AMEX adds no value compared to a real credit card. Sure, they used to 20 years ago, but yeah not anymore. Get over them, they're obviously so over their customers.
I get 1.25% cashback on all purchases, and 5% cashback on gas, groceries, and pharmacy with my Blue Cash. Please provide a Visa or Mastercard that does the same or better.
No. No. Jon. Haven't you learned anything in college? You need to get less credit, not more. These guys were doing you a favor. Listen to them. Pay off all those 33% balances, then throw out the cards.
From the OP:
My credit situation has not changed much in the past year, if anything, it has improved. I never make payments late, and I never carry a balance.
Read first, then post.
@Coach Cal Is My Dream Weaver: I agree with you. Not to mention, the length of time a credit card is active and shows a payment history, the better for the credit score. However, I have to agree in spirit that they are, in fact, douchebags for the most part (I still like my USAA Amex!).
All of this, and my credit limit with my Chase Mastercard has gone from $1,500 to $2,200 this year. What makes me so special? Probably my credit score, age, job, etc... but, really, why me?
@Jenkinsbball: Chase keeps increasing the limit on my Visa at what seems to be a 5 month interval. I use it as much as I can for the cashback so maybe thats why...
Ever try to rent a car without a credit card? Reserve a room at a hotel? Purchase an airline ticket? Nigh impossible these days. Bottom line is credit/charge cards are practically a necessity today.
If you ABSOLUTELY don't want any real credit cards, but need to use one for hotel, car rentals, airline tickets, just buy a prepaid, they get accepted just the same as a regular credit card, deposit the amount on it you need, then put it away for the next time you need to use it. 9.00 a year, not a bad price if you really don't like credit cards, or as was the case for me, had a husband who would take mine from where it was hidden and only return when it was maxed. (soooo glad i got divorced)
@Coach Cal Is My Dream Weaver: Amex both reduced my interest rate and increased my credit limit within the last few months - The limit increase was just a week ago or so. So it's not a global thing on their part, but I don't claim to have any idea what their criteria might be. I do use it for about everything that I can, to maximize the cash back, but don't carry a balance.
Banks have done a great job convincing people that unless you ALWAYS have a credit card, you'll never be able to secure a loan for a car, house, etc., at a decent rate.
@barty: They convince people of that by denying the loan.
Have a $26,000 limit with Amex. They haven't reduced my limit or increased the rate but I don't carry a balance anyhow. All my cards have limits or around $15,000 or higher. A few raised the rates but only because I don't use them anyhow.
@xkevin:
Same here. I always keep a balance too, so I'm sure they think raising my limit will cause me to max it out. I did that in the past, when I was young and stupid, but I've learned from my mistakes.
I experienced something similar with Lowe's/GE Money Bank. They suddenly lowered my limit to $5 over my current balance despite a perfect payment record. Then they reported that to the credit bureaus, so it made me look like I was maxed out. I need to call them and protest and see if they'll raise it again.
It definitely had a significant impact on my FICO score too.
An update to my previous comment: I called Lowe's, and they reinstated my earlier credit limit.
Whew.
This story reminds me of a YouTube video I watched recently, by the authors of The Power of Small, about how small talk saved someone's life ( http://tinyurl.com/csd7je ). I recently had my credit downgraded by Bank of America, for no apparent reason. I was going to ignore it, since I don't need that much credit anyway, but this article and these comments have inspired me to fight it. Wish me luck!
@Winteridge2: OP (Jon) here. Basically, what Coach Cal Is My Dream Weaver said. If one has the discipline (which I think I do), credit cards are a fantastic alternative to cash. They provide added convenience, added security and even save you a bit of money with cash back. And as a finance/accounting major, I've learned quite a bit from college! Thanks for asking.
@Jenkinsbball:
You're experiencing the "new card holder syndrome".
When I first got my chase card it started at like $2k and then over the next 6 months slowly raised up to $8k.
I suspect they tend to do this with new customers to ensure the credit ratings were actually indicative of your current standings and start rediculously low before lifting you up to your actual credit worthiness.
@MsAnthropy: My Amex charge card limit is much higher than my Amex credit card limits, i.e., 10x higher. I know this because I was having trouble paying a merchant and called Amex to ensure the problem was not with my charge card limit (since I didn't know what that limit was). The CSR told me she put through a test charge 10x higher than the limit on any of my Amex credit cards and it was approved.
i just experienced the same thing with amex. carried a $1,850 balance on a $3,000 limit, and was in the process of paying it down in small chunks. never had a late pmt, and absolutely nothing has changed about my finances in the past year other than reducing card balances. no income change, nothing. they gave me the exact same BS answers, i spoke to sup after sup and got nowhere. called the exec office # and still got nowhere. so i xfered all of my $$ off of that card and onto my discover. if they're going to kill my credit score, they're not getting my interest pmts to pad their pockets!! im still super pissed though. cost me $50 in balance xfer fees, but that's two months finance charges to go along with many more months worth that they wont be getting from me! i foresee a crap ton of people giving up on amex for screwing their customers so willingly, especially the good ones, and them ending up bankrupt because of it. we'll see.
@barty: Yea, this guy is a young person in college. This credit card will be part of his "history" of good credit. He has no mortgage at this time and pays off his credit cards every month. I also have no mortgage but really good credit because I have high limits and low balances that I pay off every month.
That's weird I had my credit limit increased by $3500 from $2000. A huge percentage increase when you think about it in light of people getting their limits slashed. I think the key is using all of your credit so for the people with a $20k limit you'd have to run it up that high and pay it off to prove you're worth of that limit. I put work expenses on the card, paid it off early and then put my tuition on the card and paid it off again each time coming within a few dollars of my limit; so I could unlock my 5% threshold on my AMEX Blue Cash card. I didn't even ask for it, I just got a letter in the mail informing me.
They have credit limits on Amex?