Not only is American Express slashing the credit limit's of their customers,
their "search and destroy" tactics to find potential high risk card holders
are lowering the credit RATING of ALL their customers. I became aware
of this when I tried to use my Am Ex card in January 09 and it was
declined because my credit limit was exceeded. I immeditiately called
Am Ex, as that card had a $10,000 limit. I would have been shocked
to find a balance of even a $1,000 given that I pay all my credit cards
off in full monthly. I was informed that there was one (1) negative
entry on my credit report and that was the reason my credit limit had
been slashed to $500! I excercised my right to get a copy of the
Experian Credit Report, as I was unaware of any unpaid bills.
I talked to Experian and the phone operator immediately said "Let me
guess. American Express?" when I told him a creditor had told me that
I had a negative entry. When I received the Experian report there was
indeed one (1) negative entry for a whopping total of $69. But even
that debt was not mine and Experian promply removed it from my
record when I protested the entry. But what I did have on my credit
report was SEVEN (7) pages of American Express checking my credit
frequently, at times on weekly basis. For those of you who don't know,
every time ANYONE requests a credit check for an individual it lowers
that persons credit rating.
The rest of the Experian report was just all of my other bills being
shown paid in time and in fulll. I subsequently read a net article
that stated credit card companys, and specifically American Express,
are trying to cut credit limits of people who hold a mortgage with
a lender that is in trouble. Given that my mortgage is with WaMu
that is the only reason I can see for American Express to watch dog
my credit rating. But they are hurting the credit of anyone that
they target in this manner. As of today all three of my credit scores
are still above 770. If you happen to be on the edge of a good/bad
credit rating, however, American Express may drag you down with
their persistent vulturing.
I cancelled my American Express card today - good riddance. I hope
others will follow suit. I admit trying to get the original credit limit
restored before I threw my hands up in frustration. They were using
a circular logic that read, and no I am not kidding, "We cannot raise
your credit limit because American Express recently lowered your
credit limit." When I aked them to explain that sentence, they claimed
credit limits and credit increases were separate departments. When I
asked for the number of the appropriate department that I should
speak to, they gave me the EXACT same phone number I had
originaly called before being forwarded to them. Not only is there
logic circular, so are their phone operations. They of coursed denied
I had been targeted for a credit limit slash. The seven pages of
American Express checking my credit weekly proves they are lying.
No wonder we have a government stepping into wring their necks.
But I believe in the capitalist system. If enough of us tear up our
American Express cards they will be singing a different tune.
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