Sounds like the phone call to check the available credit triggered the freeze. You tipped them off you were about to put something big on it.

@Corporate_guy: I agree. And while normally I'm a proponent of free market principles, the whole credit system needs an overhaul. Credit scores are nice, but they need to be standardized and available publicly (like how they are figured), and lenders need to disclose their standards in the ads. (Not only Top Tier credit history will get 0% financing, specify the credit score!)

Things like involuntary credit reductions can't reduce your score - only if your account is delinquent can they freeze your account/close it where it would have already hurt because of the delinquency.

No more "you're late on another bill" stuff either. Too much problems if one company loses your payment (and it's their fault) because it's too easy for the creditors to say "data verified" instead of answering the question....perhaps larger penalties for breaking the laws/rules....

I hope she provides her story to her congressional representative. It is also disturbing that Amex would freeze her card for a "pending review" without prior notice to her. Someone will likely respond to this comment and tell me it's allowed in the card agreement. However, it's illusory to offer a line of credit and then freeze it without notice or cause--for a purely administrative reason.

@Corporate_guy: American Express should have an online payment interface, where you should be able to see your credit line. That's probably the best way to go - it wouldn't tip them off (they'd just think you're making a payment).

Best wishes to Elizabeth and her dog! In the future, I would suggest carrying another card; American Express seems to be the worst for cutting credit lines randomly.

@Corporate_guy: This absolutely happens! There are a lot of key words on a phone call to cc companies that will trigger action, including asking about your line, how to increase your line, etc. I guess companies look for any reason to reduce risk right now!

This is absurd. Here was the OP, being a responsible credit card user and making sure she'd be able to cover the charge, and she gets nailed for it. So much for telling us, "Don't Leave Home Without It!"

let's have a discussion uninfluenced by the dog, shall we? Because if you're interested in helping people in similar situations who don't have cute dying dogs, let's talk about the main issues. About 2.5 paragraphs could be cut out of that letter regarding the dog. I doubt it has any bearing on the outcome. All we're talking about here is the denial of a charge, when earlier in the day another limit was quoted.

I doubt AmEx can be held to it. They could plausibly say that they changed the limit during the day, or as a result of the type of purchase. Whatever the reason/explanation, what do you suggest doing? Complaining to your congressman over the denial of a specific charge?

What is the unfair practice here that would be regulated? Changing your credit limit after you inquire about it?

Oh for the love of all things holy. Credit card companys are screwing everyone because they can. Nearly three weeks ago, I was unable to use my Chase card to book a hotel room for a friend's wedding. Yesterday, I finally get a letter saying "after careful consideration" my card is being canceled. Including because "too short time since past due." I've never been late paying a credit card, so I have no idea what they're talking about. But screw em. I'd like to think, like my friend, that eventually credit scores will have to matter less because of how nebulous the rules are, but I'm not optimistic. The slightest thing can screw you over. If AmEx decided that the LW was a risk because she has a dog and dog-owners are more likely to default, it would not matter how full of shit they were. They could do it.

Perfect reason to freeze American Express. Do one of two things, both of which will eventually cost American Express the business of a heretofore loyal customer:

1. If they charge you an annual fee, dump the card. American Express will lose both the annual fee, and the revenue stream consisting of the merchant fees on your purchases (what the retailer pays them to accept the card).

Do note, however, that if you are particularly focused on your credit score, dumping the card could hurt your score by reducing the average age of your accounts and increasing the ratio of credit used to credit available.

2. If they don't charge you an annual fee, be very stingy with the card. Make sure you charge something every month to it, but make it as small as you can so they reap as little as possible in merchant's fees. A trip to McDonald's, or maybe milk and bread at the store.

This wouldn't affect your credit score like first option would, and American Express isn't likely to cancel your account for non-use.

Maybe there was some suspicion of fraud here It doesnt sound like the card has been used for big purchases. Maybe she bought some big ticket items recently. Anyway, $1100 isn't a lot of money The description of doggy cancer has nothing to do with it

@kepler11: how about notifying you before / as they freeze the account? that would avoid issues where the consumer is surprised to find the card is useless would'nt it?

@kepler11: Changing your credit limit without notification or exigent circumstances.

Yup. Elizabeth's responsible and prudent call to Amex was punished with a credit review. This is similar to how if you call to ask about your homeowner's insurance, they will actually flag this on your policy and consider it in your next renewal.

The moral of the story is don't give these companies the "heads up."

One of the American Express commercials I remember from Back In The Day (tm), besides the Karl Malden ones, was the commercial with the guy trying to get out of some foreign city with a tank rolling down the street and American Express was there for him.

This post sounds like the OP had her 'tank rolling down the street' moment and American Express was not there for her. I got hit by their weird credit reductions (they cut both my Gold and Blue cards and justified the cut on each by referring to the cut on the other in a pair of circular logic letters that arrived the same day) and stories like this reaffirm my decision to cut AmEx out of my life.

CREDIT CARD issuers do not care about you, only your money. You told them you were possibly going to be using the card for a large purchase so they went into "battle stations" mode. See, credit is a game and the credit card companies make the rules and hold all the winning hands. As soon as they saw yours, you were sunk.

I am sick about your dog as I lost my pug recently. I ran up a tab of nearly $10,000 trying to find out what was wrong with him at the University of Florida vet "training" school in Gainesville. After days of tests, SEVEN vets and "students" looking at my dog I ended up with an atrocious bill, NO DIAGNOSIS and a DEAD PUG. I will never know what killed him and why he had to suffer. The UF vet clinic had no idea what they were doing. (Sorry for the rant but I had to vent)

To pay these incompetent "doctors" off I borrowed the money from family instead of using my credit cards. I will owe no interest, either.
In your case, you probably had no other course but the credit card. I would carpet bomb the executives at AmEX and write about your experience on EVERY damn consumer site you can find. Good luck to you, dear, and your pal.

Just a thought for future use. Most credit cards, including American Express, allow you to access your account online. You can see pending charges, available credit, etc. I use my American Express card a lot and on occasion, they won't deny a charge but they will ask me to verify some information on an unusual charge. I have no problem with that. It sounds like the OP got hit with a (rhymes with witch) representative and she should probably take this higher. A reduction without notice and with no event to trigger it (like a late payment) is simply wrong.

Maybe Congress should consider making a credit card agreement a binding contract, binding on both sides as long as the terms are met.

@Corporate_guy: Nope, it was actually using the card for a large purchase that did it. I tried to do a balance transfer by using the cash advance feature of my card (still lower interest rate than the card we were trying to close). It was denied and locked by the fraud detection feature on the card because of the amount I was trying to take out. In the time it took me to call up and see why it was denied, they had already done a credit check and decided I didn't need most of my available credit. I let them know how "happy" I was about that. And now we're just using a new card from our local credit union at less than half the interest rate, closing both that card and the one we were trying to consolidate. If I had called to let them know that I was going to be doing a rather large cash advance, they could have prevented it from flagging the fraud detection (just like letting them know when you plan to travel).

American Express obviously decided that they no longer want to be the most respected CC issuer in the nation. I remember when having an Amex meant you knew you'd be safe - Amex was always there to help you.

Now they are just another bunch of crooks in the big lineup of shady CC companies.

@scoobydoo: I agree. I remember, and not that long ago, American Express was still the golden child of credit cards. You felt safe if that was in your wallet while chase and BOA ran amuck.

So much for that. I've read more than a handful of icky American Express stories lately.

@kepler11: I think it's pretty balls of AmEx to cut bring up your card for review, or cut your limit, without prior notification. She had no logical reason to believe that her card would be declined. This behavior is reprehensible.

When you make a call to verify something, which was acknowledged, then you have the right to believe that it still stands a few hours later. This is no different than an airline canceling a reservation that was confirmed by email or phone, calling an electronics store to verify that they have a particular product only to be told it's not available when you arrive, etc. This doesn't seem to be a credit card company issue as much as it is a wide spread corporate issue. Credit card reform won't be enough, I'm going to jump on a wide spectrum consumer protection ideaology that punishes business' for this very type of practice.

I hope she's gotten things settled, but if not CARE Credit gave me the liquidity to prolong my critters' quality of life.

When all three of my pets got sick simultaneously, right after I paid rent and made a big business purchase AND had an employer stiff me for payment, their vet told me about CARE Credit. It's a line of credit only available for healthcare (human and animal). Horrible APR and late fees, but if you just need a little flex, it's a lifesaver.

@EdnaLegume: They've been doing this for well over a decade, though, so I'd say they've been skating on stories of their glorious past for some time. That "no preset limit" has always been a bug described as a feature.

@kateblack: I actually got declined for a one-year-same-as-cash Care Credit account when my cat got sick over the holidays, and I've got pristine credit. The only reason I could figure was that I had too much unused credit on credit cards I hold, because none of the other "possible reasons" in the letter they sent applied to me (and I confirmed that by getting a free copy of my credit report, which you are entitled to after being declined for credit).

So basically Care Credit can be a good option if you get accepted, but they don't accept everyone.

@kepler11: So basically if YOU decide to live by the terms of the agreement, and you have the balance available, then in the interim they decide to CHANGE THE TERMS without prior notice, too bad so sad. What if I get my businesslinch authorized at noon, then at 3pm they decide to cut my limit and it take me over my limit. Fuck the CC companies. We own their fucking asses. AMEX, BOA, Chase, et al would all be OUT OF BUSINESS, without living off the federal government bailout. Everything they decide to do is in fine print and not clearly explained. I challenge any lay person to understand a typical credit card agreement and the changes that come MULTIPLE times per year. Sorry, I dont have a team of lawyers like they do to make a one sided unfair contract. I espouse racking up as much debt as possible and going to bankruptcy and telling the banks to go to hell. You already have stolen tax dollars (though legal), so I am going to use my legal means to get it back.

@KhaiJB: So if they had texted her the new limit, everything would be gravy?

@Hoss: $1100 is not a large purchase by any stretch. Have you traveled, purchased a TV, had a car repair, or paid for repairs to your home? if $1100 seems like fraud to them and require review the card is useless. Most dont need AMEX or credit to buy milk or bread, they use to for large purchases that they ENCOURAGE because of the warranties and the large commissions they reap.

@twophrasebark:
That's not true. What makes you think inquring about your home insurance triggers any sort of red flag? The only time we get nervous is when a policyholder calls asking suspicious questions about possible claim scenarios. Even then, we don't flag the account. We just note the conversation was had.

@H3ion:
Her ability to access her account info online has no bearing on what happened to her. The point is that an inquiry about your available credit shouldn't trigger a review in which your account is frozen with no notice.

@cabjf:

I don't think you can categorically say that it was one thing or another that "did it". I personally agree with Corporate_guy here, though; calling AmEx (or any card issuer - anyone willingly entering into dialogue with BofA these days is dicing with credit limit death, for example) for any reason at all sets you up for more than the usual level of automated scrutiny, but I strongly suspect that calling to ask exactly how much credit you have available to you right now will set off all kinds of alarm bells in their paranoid little heads, and send them scurrying to freeze your limit ASAP.

I bought a couple of laptops on my AmEx a few months ago. The purchase came to more than I'd previously spent on the card in a any single month since I've had it (although I do use the card a lot), and was my biggest purchase on the card by many multiples. The purchase would also take me to the highest balance I'd ever had on the card. In the store just before going to pay, I was mulling over my options. I wanted the added protection (and the cashback) that comes with using my AmEx, but I was mindful of some of the actions they've been taking lately. Not too long ago, my gut instinct would have been to call them to warn them of the large out-of-pattern purchase I was about to make. Then some other gut instinct took over and told me that to do so would be a surefire way of getting my card cancelled at the point of sale, just because by calling, I'd be inviting a real live human being to flag my account up for some kind of review. So I didn't call.

Purchase went through just fine, and a month later I got a totally unsolicited (and, I'm sure, automated) credit line increase, which came as a HUGE surprise. I really don't think I'd have had the same outcome if I'd called them to ask their permission to spend a large amount of money.

I'm going all off-topic here, but... large purchases are what AmEx likes. If Elizabeth had just done what I did, and swiped her card while closing her eyes and crossing her fingers, all may well have been fine. I think it was the addition of an actual AmEx employee into the mix that did the damage.

And to Elizabeth... I'm sorry this happened to you. I hope your lovely dog gets the treatment she deserves and gets many more happy years with you.

@katstermonster: What has higher odds? Someone robbing you on the street or a credit card company locking your card or yanking your credit limit with no prior notice.

@nonzenze: it would be a start wouldn't it?

The problem with Care credit is that if you don't have the money to pay for a needed human medical procedure you likely don't have the stats to get a credit card. Then what?

Speaking from experience with AMEX, I had my credit slashed in half by them after the banking fall out. I only used the card to transfer my high balance cards when they offered me a super low rate.

They have been dropping it every month to keep exactly $500 above my current balance. I receive notice about once a quarter that they are doing this but they say that in their terms they can do it this way.

To answer the OP, it sucks but calling them to confirm was the trigger. My question is why did you have to speak to someone about your credit? When I call any of my cards, I am told my last payment (amount and date), amount due, balance and available credit. Did this not happen?

@Hoss: What the hell does it matter how the card is used? What is the point of a credit limit of 7k if 1k is going to be flagged suspicious and denied?

@kepler11: Wait, so you think its ok for them to change your credit limit mere hours after telling you what it is?
Seriously?
That's the most ridiculous thing I've heard today. If I call you and ask how much credit I have and you say $3000, that means $3000, not $3000 arbitrarily. Not $3000 if we feel like it.
Otherwise WHATS THE POINT of a credit card?
So you can cross your fingers and hope you are in the good graces of their credit worthy-enough department when you actually want to buy something?
That's just asinine.

@tbax929: You guys are talking about the same thing.

"This is similar to how if you call to ask about your homeowner's insurance, they will actually flag this on your policy and consider it in your next renewal." \
Is the same as
"The only time we get nervous is when a policyholder calls asking suspicious questions about possible claim scenarios. Even then, we don't flag the account. We just note the conversation was had."

"call to ask about your homeowner's insurance" how would that be anything but a call about what is covered? What other inquiry would anyone be talking about?

"We just note the conversation was had." That is called flagging. So next time you renew the person reviewing it will read that and consider it in the decision to approve the renewal.

@Hoss: They don't lower your limit when they suspect fraud. They freeze your card and you have to call in to verify that it is, indeed, you trying to make the purchase.

@tbax929: The point is she should have logged in online to check her credit limit. As this will not be seen as atypical behavior. While calling to confirm a credit limit is a huge tell that you are about to max that thing out.

@scoobydoo: When American Express got into bed with Primerica back in the early 90's, was the time when I realized AmEx was a shady company. It's only being found out now.

I have always believed that there is a special place in hell for people who malign animals - however indirectly.

Yet another reason why i've never owned an Amex ...

@savdavid: Oh I'm so sorry. My cat recently died of untreatable lung cancer, but they figured it out a week before she died. We spent about 900 dollars to get that diagnosis and emergency vet care. I hope this dog gets the treatment it needs.

@Corporate_guy: Totally not true. I work for an insurance company. Just because you called to ask a questions about your insurance does not mean you won't be renewed. If that were the case, my company would be out of business. Insurance companies can only non-renew you for the reasons specified in the contract, which are generally only non-payment, claims (*actual claims*) history, or what we call "substantial change of risk" - this means you put in a pool with no fence, or suddenly started a business on your property with lots of customers coming onto the property. NO insurance company is going to non-renew you just for asking a question, nor will they raise your rate. That sort of thing just invites a visit from the state OIC, who is generally someone who derives the most joy in life from levying fines on insurance companies that break the law in that sort of fashion.

It's just a dog. She can always get another one. Probably for less expense than saving this one - now that's the kind of money-saving advice Consumerist ought to be giving!

Fortunately this hasn't happened to me. I've had an AmEx account in one form or another since 1986, for a few years I even carried their Platinum Card for a couple years. Nothing but great service to this day.

Currently I carry their Blue Cash card. I typically run up to 20-25% of the available credit and pay that off every month. My credit line hasn't been reduced and I just got my 2nd annual cash back reward (<$500).

I've been reading about this decrease/freeze/account review over at FlyerTalk. It seems American Express doesn't really care for their customers at this point. There doesn't seem to be any method to the madness.

American Express could care less if you've been a customer for 20 or 30 years and paid every single bill on time and in full. People that have had an AmEx card since the 80s are getting told "good bye". To make matters worse, some of these people have had a card that has an annual fee (i.e.: Platinum). Sad, really.

I hope that stories like the above will make people better ,more discerning consumers when the whole "crisis mode" that we are in returns to something like normalcy. I hope that people will REMEMBER what financial institutions did when the chips were down and they needed a real financial partner ,not an exploitative parasite that took advantage at the first opportunity.

I hope all of that ,but am afraid that when things loosen up a bit ,these giant loan sharks will just crank out a few cutesy ads , toss out a few "rewards" and the dumb masses will come flocking back to them and forget how they put a knife in your back when things got tight.Then we will start the game all over gain.

Sorry about the OP's dog ,but if this teaches a few people about Amex's trustworthiness (and customer "service") then ,she will not have suffered in vain.

I had a similar incident happen to me earlier this year, when AMEX cancelled my card suddenly after I made a payment that was very large in order to get my credit down--I was getting ready to apply for a mortgage so was trying to keep my levels lower. I also had planned on using the card for a car rental on a quick trip I was taking that weekend; luckily I logged in to their website that afternoon before my flight left, in order to see if my payment had posted. At the very bottom of my activity screen, in teeny tiny letters, it said "this account is closed." I called to find out what was going on and received similar treatment as the woman in the article. My issue, of course, is not as horrible as hers (I hope her dog is ok--it's difficult to replace a lifelong friend); however it was incredibly inconvenient--and of course it doesn't look good on my credit report, which has hurt my mortgage chances.

Not only did they cancel it--they also had charged me the previous month for my annual fee--and refused to refund that money.

Credit card companies, health insurance companies, it's all the same story... they're there for you until you want to actually use the service you've been paying for and they might have to pony up a little bit; then they can't run away from you fast enough. But to ask the gov't to regulate these SOB's just a little bit better... no that would be socialism!!!!