Really Ticked at American Express (Full Version)

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writerchick -> Really Ticked at American Express (6/25/2009 2:48:25 AM)

I'm so ticked, I don't even know where to begin. So I guess I'll just jump in.

I tried to use my card today for a $1.17 purchase, but it was denied. I figured that they may have blocked the transaction because it was out of state. When I got in the car, I checked my balance and available credit. Everything looked fine. I figured the store was mistaken.

A couple hours later, I started looking at airline tickets to return to LA. As has become my custom, I checked the amount of the purchase, transferred the payment from my bank account to my Amex card then finished the transaction. I had this grand plan of racking up points, but not interest, to use for travel to my synchro meets.

I went to purchase the ticket and it said that my card had been declined. Now I really don't know what's going on. I called American Express to see why these transactions had been declined and the representative tells me that my card has been canceled. WHAT?!?!?!

She goes on to say that they did a routine check of my credit report and canceled my card because of two derogatory items. For the life of me, I cannot figure out what these items could be. It can't be anything to do with them because I've been staying a month ahead of them on payments this entire year. Before that, the card has been in good standing. Every time I use the card I either send them a payment before I make the purchase or immediately after. Just four months ago, they lowered my interest rate. I've had this card since 1996.

And the best part to this drama...They refused to cancel the payment I just sent them for the plane ticket. Hence the really ticked part. I'd love it if I were in a position to toss around $400 like candy, but I'm not. Especially when this is the second $400 ticket I've had to purchase within the last week.

I called my bank to stop the payment. Because it hasn't shown up yet, the rep wasn't sure if they'd be successful, but he put a note on the account. We'll see what happens tomorrow when I follow up on this. 'Cause you know. I didn't already have enough on my plate with my dad dying yesterday.

I tell you. I'd really like to kick the CEO of American Express in his shins right now. Maybe both shins. While wearing steel-toed boots.



GroupW -> RE: Really Ticked at American Express (6/25/2009 8:40:09 AM)

Get a copy of your credit report right quick and make sure there isn't a problem with identity theft or a medical bill mess up. Dings can happen a couple of ways that don't require a mistake on your part and they usually aren't that hard to correct.



ctpruitt -> RE: Really Ticked at American Express (6/25/2009 8:40:39 AM)

Well, that attitude won't help; I can tell you that from personal experience. The only thing you can do here is:

(1) Calm down and trash the card.

(2) And find out what "items" they were talking about. Sounds like somehow someone else's sorry credit got attached to yours.

(3) Get another card from Mastercard, Discover, or Visa. I can't even use AE at Mcdonald's where I live.



Miss Giggles -> RE: Really Ticked at American Express (6/25/2009 8:57:03 AM)

quote:

ORIGINAL: GroupW

Get a copy of your credit report right quick and make sure there isn't a problem with identity theft or a medical bill mess up. Dings can happen a couple of ways that don't require a mistake on your part and they usually aren't that hard to correct.


I agree.

You've got to check your cards online often or use something like quicken or mint to monitor your balances. AmEx has a great website and you can sign up for notifications by email or phone call. There is no reason in this day and age to wait a month for a paper statement and then try to clear up a mess with disputed charges, etc.



GroupW -> RE: Really Ticked at American Express (6/25/2009 10:12:12 AM)

Also keep in mind that banks and finance companies are getting nailed with losses on credit cards. They are looking for any and every way to cut back on their exposures.

Anything negative on your credit report doesn't have to have anything to do with them for it to be enough to make them want to either cut back your credit line or cancel the card outright.

Most banks right now are operating in the "panic zone".

You'd also be surprised what might show up on a credit report. I've had two different episodes and I have great credit. On one, I had an autodebit for my train pass in Chicago. I forgot to cancel it when we moved, so they turned it over to a collection agency. I never even realized there was in issue until it almost killed my first home purchase. Fortunately, it was easy to explain and easy to remedy.

Second episode: my insurance company was trying (unsuccessfull) to get out from paying the emergency hospital bill for my son. They played a bit of hardball, sending the $30k bill to a collection agency hoping I would just pay it. Took 6 months, but we eventually got that fixed.

Could be something silly like the first example, could be someone else's credit record on your file, a fraudulent credit line, a goofy erroneous collection claim. Lots of things it could be, but you need to figure it out quickly and get it resolved before it bites you even worse.

(If it makes you feel better, Amex cut my credit line in half because another credit card company closed my credit line. They didn't have any way of knowing that my other credit card was a company card that they gave me for expenses, and since I had just been laid off the company naturally closed it the minute I got my layoff notice. Naturally, both of those things impacted my credit score and dropped me into the high 700's from the low 800's. Argh. As if being laid off wasn't bad enough.)



APZR -> RE: Really Ticked at American Express (6/25/2009 11:30:15 AM)

If you are a zero sum customer, IE: you don't use the card OR you pay it off ever month, banks are closing your credit down left and right. The banks need the credit to extend to other customers who will make them money. So if you have a card, you need to use at least every now and then... and carry a balance for a month every now and then. The rules of the game has changed, and you have to play a new game with the banks to keep your credit cards.



crankius -> RE: Really Ticked at American Express (6/25/2009 11:35:30 AM)

quote:

I didn't already have enough on my plate with my dad dying yesterday.


(((writerchick)))

I'm sorry about your dad. I pray the situation works out with the $400.



GroupW -> RE: Really Ticked at American Express (6/25/2009 11:36:38 AM)

Absolutely. The banks have to keep cash and capital reserves against both the drawn portion of the card (an existing risk) plus the undrawn portion (a potential risk.)

They don't like having to put capital up against assets that don't earn them money. It's dead weight and they are trying to trim it back as fast as they can.



blessedinnyc -> RE: Really Ticked at American Express (6/25/2009 11:59:09 AM)

quote:

ORIGINAL: APZR

If you are a zero sum customer, IE: you don't use the card OR you pay it off ever month, banks are closing your credit down left and right. The banks need the credit to extend to other customers who will make them money. So if you have a card, you need to use at least every now and then... and carry a balance for a month every now and then. The rules of the game has changed, and you have to play a new game with the banks to keep your credit cards.

They're also raising rates. I had a card that was charging me Prime +4% (7.25%), and I just received a note saying that that wonderful run is coming to an end.

I'm not annoyed about it- I understand. Some of these banks are paying more than 7.25% to borrow money, so how can they lend to me for less than that? My concern is that I'm not sure how these 1% and 2% rewards cards issuers will be able to make any money off of us if they DON'T want their customers carrying balances and they're only charging 2-3% in merchant fees.

Either merchant fees will have to go up or the rewards will have to end.



WhiteRoseBlessings -> RE: Really Ticked at American Express (6/25/2009 12:11:49 PM)

WriterChick, I don't have any advice or suggestions regarding what happened with your card, but please accept my condolences regarding your dad's death. I will say a prayer for Our Lord's Comfort for you and your family.

Blessings,
Sharon-Marie



Miss Giggles -> RE: Really Ticked at American Express (6/25/2009 12:18:30 PM)

I am sorry. i did not know that. My condolences



GroupW -> RE: Really Ticked at American Express (6/25/2009 12:50:58 PM)

Ugh. Feel like a putz for not noticing that part of the OP. So much for being sensitive and empathetic.

My condolences as well.

BT



writerchick -> RE: Really Ticked at American Express (6/25/2009 7:45:50 PM)

Thanks for the suggestions, prayers and condolences everyone.

I did a little more research into this last night and it seems like I'm not the only one who got caught in this massive Amex cut back. Non use had nothing to do with it. Over the last few months, I've been using it all the time. Since I was paying upfront, my balance hovered around the 40% mark.

Still, I do have to see what's on my credit report. I'm just about due to order the 2nd one for the year. I just feel so let down because I have really been on top of my credit this year. For this to come out of the blue at the worst possible moment really threw me.

I'm going to start looking into this as soon as I get home. Our company has an employee assistance program to help me get to the bottom of this.



GroupW -> RE: Really Ticked at American Express (6/25/2009 8:32:30 PM)

Yes at that level the undrawn drag isn't bad. Anything close to half is usually good. And yea there are a lot of Amex folks getting the same result. Check it out and let us know how it goes.



DeeAnnBailey -> RE: Really Ticked at American Express (6/26/2009 2:00:25 PM)

quote:

ORIGINAL: writerchick

Thanks for the suggestions, prayers and condolences everyone.

I did a little more research into this last night and it seems like I'm not the only one who got caught in this massive Amex cut back. Non use had nothing to do with it. Over the last few months, I've been using it all the time. Since I was paying upfront, my balance hovered around the 40% mark.

Still, I do have to see what's on my credit report. I'm just about due to order the 2nd one for the year. I just feel so let down because I have really been on top of my credit this year. For this to come out of the blue at the worst possible moment really threw me.

I'm going to start looking into this as soon as I get home. Our company has an employee assistance program to help me get to the bottom of this.


They did the same thing with mine because I added my daughter as an authorized user. However, they didn't do it UNTIL I had paid the balance off completely. I usually paid for it as I bought, not carrying over a balance. The day after I paid my balance they cancelled my card and it was the card I had my cruise ship charge set up for. What a pain when I got on the ship.



Mollymouser -> RE: Really Ticked at American Express (6/26/2009 3:33:42 PM)

There has been a lot of grumbling about AMEX and other credit card companies canceling cards on the MSN money board ... this seems to be a widespread issue.



GroupW -> RE: Really Ticked at American Express (6/26/2009 3:45:27 PM)

It's a very widespread issue. Banks are short on capital, so they need to either:
1) Sell assets to reduce risk
2) Raise capital
3) Stop new lending

#3 is political and professional suicide.
#2 is very expensive right now.
#1 is possible, except the riskiest assets get the lowest prices and create the biggest losses, further reducing their capital.

Reducing card balances is somewhat of a magic bullet:
1) It doesn't involve a sale at a loss - you just reduced potential FUTURE credit exposure.
2) If you actually cancel the card, you usually get paid off at face value. Getting paid $100 to pay of $100 in debt by the borrower sure beats having to sell it at 90 cents on the secondary market.
3) You can't do that with very many other loan products (auto loans, mortgages, etc.)

Makes it an attractive strategy when you're back is to the wall. It's not that they are mean people or a bad company. It's just symptomatic of rough times.



trelawrence -> RE: Really Ticked at American Express (7/1/2009 1:10:21 PM)

Great advice already given.

OP, you were subjected to the nefarious Financial Review. Known as FR in credit circles, it is Amex's way of reducing risk. The only problem is that they tend to get good customers.

Without getting too deep into it, Amex runs their business a bit differently than most. They gave cards away like candyback a few years, and then try to risk manage them post-approval. Both processes are VERY automated, and therein lies the problem.

Any derogatory info generally seems to trigger an FR. Amex seems to subscribe to credit monitoring on it's customers. Other activities may trigger an FR (like uncharacteristically not paying your balance in full when the statement cuts, or even using your card at a risky establishment). Amex keeps tabs on activity like no other creditor.



writerchick -> RE: Really Ticked at American Express (7/4/2009 6:00:27 PM)

And the saga continues.

I just got a call from their collections department claiming that the payment due today was late. I tried to point out the three payments I'd made since the statement closed, but the woman could care less. Finally, I just hung up on her.

Now I guess I need to know how to avoid harassing phone calls. On my cell phone no less.



APZR -> RE: Really Ticked at American Express (7/6/2009 10:38:30 AM)

Wow, like you need anything else to deal with. [:@] CC issuers are starting to panic as new laws are coming down the pike, and the deadline is upon them. It's rare that I tell someone to use credit to pay off credit, but in your case... I'd probably take one of the offers I get in the mail for an introductory rate, transfer the balance, and say Adiós to AMX!



churchsinger -> RE: Really Ticked at American Express (7/23/2009 11:47:08 AM)

The same thing happened with me and Chase. I was current on my payments, never late and not even close to my limit. They cancelled my card because they said I had bad credit score. I was really angry because that was my only card left for emergencies!

Just last week I got a letter from Carecredit/GE Money. I had used it for my eye surgery before I had health insurance. I paid the balance in full before the due date. I don't have a balance at all. They cancelled my card because I have bad credit. Thank God I have insurance now from my new job.

All the credit cards seem to be doing it. Even though you've been a good customer, they will cancel your card because you were late on something else.

There's got to be some credit card reform here.



GregandJenny -> RE: Really Ticked at American Express (7/23/2009 12:22:47 PM)

quote:

There's got to be some credit card reform here.


Yup there needs to be. It's really simple: don't use them. get on a money management plan, Save money for emergencies, cut back. I used to be pro credit cards but, now not so much.

The bible says the borrower is servant to the lender and we are really seeing that play out. We don't have a "right" to credit and that's what we need to realize in this situation.



NINEA -> RE: Really Ticked at American Express (8/9/2009 11:18:19 PM)

Even if there were no derogatory credit items, they cut back on credit or cancel cards if you pay of the entire amount every month--in other words, not paying them interest.

My HELOC was frozen after a credit check and my score is over 800. Use it or lose it.



writerchick -> RE: Really Ticked at American Express (8/10/2009 1:09:20 PM)

I checked my credit report. The only changes on it were an account I paid off two months ago and it looks like a store card I hadn't used in years has been closed. Credit is such a no-win situation.

I also found out last week that Amex jacked my interest rate up from 10% to 27% when they closed the account. I got them to reverse the fee they charged me for the payment I canceled and they've lowered the APR back to 13%. Apparently, it was scheduled to go up anyway. I also got them to give me the points I earned back. I just have to figure the best way to use them.

Oh well. I'll be done with this company completely in a few short months. It was funny, though. Each of the representatives I spoke with were all super nice. A big contrast from the hag who called to harass me over the so called late payment. The latest representatives all expressed that they hoped I'd consider opening another account with Amex in the future. To which I replied, "That's really not likely."



iluvatar -> RE: Really Ticked at American Express (8/10/2009 10:11:42 PM)

I work for a small e-commerce company that's been in business for 20 years (used to do phone sales and brokering before the internet). We've had the same no-limit corporate Amex cards for the entire time, with a perfect track record. About 6 weeks ago, the company was sold, and the new owner has been getting nothing but grief from Amex about getting the new corporate charge cards. We use them to pay a variety of things including our web hosting & domain names, office supplies, and stock from several vendors. We've gone weeks now w/o cards.

-Dan.



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