Massive cut in credit limit

[djchuckles]

So I have Plat charge and Edge credit and have had both for about 6 months.

Just got letter cutting my Edge credit limit from $27300 to $3000! Phoned up to complain and they said they can't tell me why - either to do with my payment history (which is exemplary) or a change in my Veda file.

First time I asked they said it was because I had a missed payment on my first bill - which wasn't true - they incorrectly charged me a $99 annual fee, so i rung up and they credited it - but for some reason their system believed my account was overdue because although the credit appeared before the due date, I didn't make a payment (there was nothing else on the statement)

Spoke with supervisor today and they wouldn't budge - means the Edge card is useless to me as have $2850 which I was taking advantage of the 0% interest deal for first 6 months

Any advice?

 

[medhead]

Wait the 6 months, cancel the card.


Sent from the Throne (80% chance) using Aust Freq Fly app

 

[The Rok]

Have you applied for a lot of other cards in the mean time? A periodic Credit File review would show all the credit enquiries meaning they might consider you a higher risk.

 

[markis10]

Have you applied for a lot of other cards in the mean time? A periodic Credit File review would show all the credit enquiries meaning they might consider you a higher risk.

Have you checked your file, I agree with the above, and it's been reported before Amex do review it on a periodic basis for other people, so it's a likely scenario!

 

[Mal]

Amex are bracing for GFC2 I think, so this won't be the only story similar.
Like others have said, there is likely to be something "suspicious" about your credit report. Amex do a regular review of your report (yes this is allowed) and also get updated very quickly if there are bad things there.
Your risk profile has obviously changed to something they're not comfortable with.

 

[djchuckles]

Only thing I did was apply for the Virgin High Flyer Credit Card (which has been provisionally approved)

 

[markis10]

Only thing I did was apply for the Virgin High Flyer Credit Card (which has been provisionally approved)

Given the way people are being cut off from the EDR card, it does seem to be a prevailing trend.

 

[Diesellife]

Sounds awful and render the card useless.
How many application do you have for the last 12 months??

Their periodical review is annoying, they review my profile once a month...probably due to my large spending...

It's better to check your report - Just in case if someone else is using your identity!

 

[djchuckles]

No other applications

I spend about$10k a month on the charge card and obviously pay that off in full

When I said it rendered the Edge useless they said well you can just use your charge card. My response being that they 'sold' the card to be me on the benefits (3-2-1 and flights etc.) so that would defeat the object!

Jokers

 

[Diesellife]

Haha probably wanna lower their risk exposure - Especially when you have 0% 6 months promotion
On top of that, it appears that they don't make interest on your credit card because you paid it off every month.

On the good side: $3000 should be fine for supermarket and gas anyway.

 

[djchuckles]

Oh yeah plenty - though I was leaving the current balance of 2850 on it for the 6 month period - guess i'll pay it off and ensure they don't get a penny of interest out of me!

With the changes to the travel insurance i can't see myself renewing for year 2

 

[Diesellife]

The current Edge insurance has a better "activation" terms and is likely to provide a wider TI coverage lol - when it compared to the new Plat Charge T&C...

 

[skywalkerLAX]

Related to the Op:

I got approved for the Platinum Charge Card 3 months ago and paid 3 Statements on time and in full... 1100$, 2600$, 4300$.

Today I saw an error message in my online account 'account currently suspended'... gave them a call and they request a bunch of information including stuff I already sent them in December. Told them politely to stick it, take their card back and refund me the fee. I added that with the decreasing insurance options the product lost it's attractiveness anyway and I would not be willing to provide sensible details to them (they seriously requested 3 months of account statements from my personal back account). Manager will call me tomorrow to discuss the refund process.

All MR Points are in my SQ account already. Thank you Amex Australia!

 

[JohnK]

Amex are bracing for GFC2 I think, so this won't be the only story similar.

Perhaps.

Like others have said, there is likely to be something "suspicious" about your credit report. Amex do a regular review of your report (yes this is allowed) and also get updated very quickly if there are bad things there.
Your risk profile has obviously changed to something they're not comfortable with.

Then I must keep under their radar somehow or they have no need to check my "credit report". I have lost count of the number of credit applications I have had in the past few years, credit limit increases etc. In fact most of them are begging me to increase my credit limit including 28 Degrees.

I have only ever been knocked back once and that was quite a few years ago and I have one of their credit cards now anyway.

 

[Simo]

Cancel it and don't look back,

I would ring them and say you cut my limit so I don't want your CC.

 

[oz_mark]

Their periodical review is annoying, they review my profile once a month...probably due to my large spending...

Amex and Westpac both review my profile once a month as well.

As for the subject at hand, I have found that the credit department in Amex seems to be a law unto themselves, and I have had trouble before with them, after processing errors at Amex. You just think somethings sorted, and the credit department cut you off again. The worst bit is that they put notes in your file about having spoken to you about it, when they have done no such thing.

 

[amaroo]

Cancel & move on.

There are so many options I would cut & run.

 

[Isochronous]

Given the way people are being cut off from the EDR card, it does seem to be a prevailing trend.

EDR cutting limits or cancelling the card altogether?

 

[markis10]

EDR cutting limits or cancelling the card altogether?

Cancelling cards in good standing.

 

[docjames]

I'm with the get rid of it group (at 5 months 29 days).