AMEX DJS credit limit cut by 67%

[albyd]

I've had an DJS AMEX card since it launched & original life of balance BT . Tonight, I found a letter from AMEX saying they had reviewed my account and decided to dramatically lower my limit. I've never missed a payment & apparently been with them for 19 years. Only other product I have is the gold charge card which I don't use but have kept paying the annual fee on. Has this happened to anyone else? I had a large unutilized limit and have other cards where I've been warehousing limits. Can they do this without cause and is this likely to happen with other issuers?

 

[The Rok]

If they see you never use your limit, and are unlikely to miss it then its an easy way for them to lower their risk profile.

Like any institution, they will have targets for maximum risk profiles and by lowering your limit they can increase another members limit who needs/wants it without increasing Amex's own overall risk profile.

 

[cove]

Albyd yes Mrscove has one and I am a partner card holder. We had a robust discussion with some DJ higher ups when the limit was crunched with no negotiating. That card is out of my two wallets now and I won't buy anything other than food hall items.
i told them I can get Bulgari when I am overseas and the tv purchase last year was a complete fiasco.
We are still shareholders and I want to go to their next AGM to get some squirm satisfaction out of those half running that retailer.
DJs said they only heard about the Amex letter after it had been mailed.

 

[albyd]

Hi guys,

Thanks for your responses. I called them this morning. Spoke to someone in credit who said they had cut me back as I've only been making the minimum payment for a long time and therefore apparently not reducing my debt (I'm not sure how that works when your rate is 5.99%) even though I've never missed a payment. As a concession, he was prepared to reinstate my limit if I agreed to pay off half my balance transfer outstanding and to a credit check. I counter offered that I apply for a new card and get a sign on bonus and transfer the reinstated limit to the new card. Ended up putting me through to a supervisor in Australia who said they will review this and get back to me later this week. I'll report back when I have a result.

I have a number of other dormant limits around town which has meant I can switch my main transactional card around without having to re-apply. Looks like this might be coming to an end.

 

[Mal]

Aah so its a credit risk decision. (And no I'm not saying you are a credit risk... Just that say 95% of their customers with the same payment behaviour are experiencing cash flow issues).
Amex do like to keep an eye on their cardholders. As they are instantly alerted to credit file changes (I believe ... Due to an agreement they have with Veda) they are able to build a bigger profile of credit activity.

 

[albyd]

that's interesting. Makes sense especially with the economy being the way it is. I wonder if my recent home loan refinance triggered a report to AMEX something had changed. Hopefully, it's an AMEX only issue with Veda (guess come March everyone can see what you're up to).

 

[Mal]

A post from an old thread I created when Amex started doing the checks...

http://www.australianfrequentflyer....ards/amex-credit-checks-15702.html#post212912

And a corresponding page on the Veda website. http://www.veda.com.au/business/consumer-intelligence/consumer-monitor-alert.dot

Interesting reading. And yes the recent credit activity could have triggered their action.

 

[Joshua]

Could be a combination of such things. I'm unaware of any such agreement but I have noticed monthly checks by Amex listed on my file (no different to checks done during an initial application)

 

[cove]

Now I cannot even find this card for my titanium bladed scissors to cut to shreds....so disappointing!

 

[lovestotravel]

Seems they didn't like the balance transfer sitting there.......

 

[oz_mark]

Could be a combination of such things. I'm unaware of any such agreement but I have noticed monthly checks by Amex listed on my file (no different to checks done during an initial application)

Consumer monitor alert is a facility Veda provide to businesses. Credit Monitoring, Credit Report on Individuals | Veda

 

[albyd]

After waiting for the call backs that never came for 2 months, I've relented and given them what they wanted. My credit limit should now be reinstated at 100% on the basis I'm on direct debit, have allowed them to do a credit check and paid off half the outstanding balance transfer.

I have been told there is no guarantee that they won't do this again in 6 months and while I have a balance transfer, I'm unlikely to start spending on the card due to lack of interest free days.

I've been thinking of just paying it all off and getting a platinum edge companion to my unused charge card. Not sure if that's the best option. I'm mainly interested in KF points now. Looks like Platinum Edge is a better earner on KF for Supermarkets & Petrol but Citi Select beats it on all other spend which is where the majority of my spend is.

I'm pretty committed to Citi Select so much so I've just got my first unsolicited limit increase for some years from Citi due to the sustained increase in spending. Not sure I want to complicate things with another account to juggle.

Just wanted to post the details of my resolution. Also, interested in your thoughts.

Albyd.