Amex unexpectedly imposed a credit limit

[random111]

Just got an email randomly from Amex stating they've imposed a credit limit of $12.2k on my personal platinum

For context I've put through a few very large transactions through the personal, one was for business two months ago while waiting for the business platinum card ($25k) and the rest have been for personal (home reno's totalling $60k)

I have $30k balance on business and $11k on personal, both not due for payment until mid September

With the business card, because it's new I've been debiting with cash before processing transactions for the most part...

Why has this happened and what options do I have to work through this credit limit with amex?

$12.2k is a PITA, would mean constantly debiting the card over the next few months as we do more home reno's

Post automatically merged: Sep 1, 2024

Edit: calling them tomorrow but will be helpful to arm myself ahead of that if others have successfully negotiated through this...

 

[Sprucegoose]

Ok, it's not a random act - you have probably triggered an algorithm that needs to be reviewed by a human.

Talk to them and explain the situation - step by step.

 

[sudoer]

With the business card, because it's new I've been debiting with cash before processing transactions for the most part...

To clarify, does this mean you're transferring money onto the card before making a large transaction, effectively prepaying it?

I think you'll find Amex doesn't like this practice. I did it once, and Amex called me within 24 hours to ask for context as it triggered a fraud alert.

 

[Pushka]

I had similar last month. And it wasn’t unusual spend in fact less than I’ve previously had. Just one business class flight. Didn’t make sense. Something changed.

 

[random111]

To clarify, does this mean you're transferring money onto the card before making a large transaction, effectively prepaying it?

I think you'll find Amex doesn't like this practice. I did it once, and Amex called me within 24 hours to ask for context as it triggered a fraud alert.

Yeah
But have only part prepaid

Noted though, won't be doing that again...

I had similar last month. And it wasn’t unusual spend in fact less than I’ve previously had. Just one business class flight. Didn’t make sense. Something changed.

Did you resolve??
Any tips?

I processed two whopping transactions today, $60 at Coles and $15 at sushi sushi!

Then email within 2 minutes

 

[Quickstatus]

Its not random at all. As a credit provider and financial institution, there are rules Amex and other credit providers have to abide by. Some of them relate to responsible lending, though I dont suggest that it is the reason Amex imposed a credit limit in your case.
My guess is that Amex is seeing abnormal spending on your card

See section 10 of your card's T&C:

 

[Seat0B]

Boy I would be screwed if they imposed such a low limit on my card!

 

[Dr Ralph]

Just got an email randomly from Amex stating they've imposed a credit limit of $12.2k on my personal platinum

For context I've put through a few very large transactions through the personal, one was for business two months ago while waiting for the business platinum card ($25k) and the rest have been for personal (home reno's totalling $60k)

I have $30k balance on business and $11k on personal, both not due for payment until mid September

With the business card, because it's new I've been debiting with cash before processing transactions for the most part...

Why has this happened and what options do I have to work through this credit limit with amex?

$12.2k is a PITA, would mean constantly debiting the card over the next few months as we do more home reno's

Post automatically merged: Sep 1, 2024

Edit: calling them tomorrow but will be helpful to arm myself ahead of that if others have successfully negotiated through this...

Definitely not random. I'd suspect you've been putting your card into credit. This cannot be done without repercussions. Multiple warings have been provided on AFF about doing this. Although I note some have continued to indicate that there won't be any problems. Sorry, but this advice was always wrong. Put your account into credit at your own peril.

 

[dein_gesicht]

You can prepay the card, but you need to call them and speak to a specialist in advance before doing it

 

[random111]

I never put the card into full credit ie prepaid more than the live balance...

Does that change anything?

 

[Cynicor]

I never put the card into full credit ie prepaid more than the live balance...

Does that change anything?

Ah, yes. Though why you’d be paying in parts might confuse them. It shouldn’t, but why would you bother?

 

[random111]

Ah, yes. Though why you’d be paying in parts might confuse them. It shouldn’t, but why would you bother?

It was scenarios like this:
balance on card $25k
Home reno bill: $20k
Spending power feedback: unlikely to get approved
So I pay down balance by $20k, then charge $20k to card...

 

[Pushka]

Yeah
But have only part prepaid

Noted though, won't be doing that again...


Did you resolve??
Any tips?

I processed two whopping transactions today, $60 at Coles and $15 at sushi sushi!

Then email within 2 minutes

I didn't do anything but just paid some money back into the account. I don't know if credit limit is current.

 

[serfty]

Spending power feedback: unlikely to get approved

There has been sporadic reporting that accessing "spending power" online can affect credit rating and doing so repeatedly can be much worse.

Amex also look at their total exposure in relation to you, across all accounts/cards.

Your best bet it to call.

 

[random111]

There has been sporadic reporting that accessing "spending power" online can affect credit rating and doing so repeatedly can be much worse.

Amex also look at their total exposure in relation to you, across all accounts/cards.

Your best bet it to call.

Thanks
I have definitely been overusing the spending power checks

Calling tomorrow but was hoping to get advice from anyone who faced a similar issue

 

[random111]

Update: Spoke to Credit this morning and they couldn't explain or resolve themselves why this has happened all of the sudden.
I asked for an appeal, to which the person asked me to submit a copy of tax NOA and said they'd respond in 2-3 business days.
I've actioned to get the ball rolling but thinking of calling back again as I was speaking to someone offsore, hoping that an onshore team member may be more helpful.

 

[random111]

Update:
Spoke to credit and thankfully limit has been removed.

They reviewed my NOA and were comfortable to remove.

The person I spoke with advised it was highly likely that activity on my credit file triggered this, which upon reflection makes sense - I'm currently undertaking a restructure and refinance of my group and have had a few applications processed in quick succession as a result.

Posting in case it's helpful for any others in future.

 

[Pvcmenace]

I had this block last year when B2BPay had a glitch that made future payments get transacted immediately and in duplicate about 120k in one day. B2B pay rectified but it was too late and triggered a limit of $13k by Amex. I had to wait 6 months for the limit to be removed so by their recommendation to continue paying bills I would have to put the card into credit over this 6 month period

 

[lovestotravel]

I'm surprised they removed it, but that's good

That being said I had my cards cancelled before as my credit file was updated with a default (incorrectly listed)

This of course happened the night before a 2 week trip so that was fun. After my credit report was updated they reinstated the cards and original credit limits

 

[Viridis]

You can prepay the card, but you need to call them and speak to a specialist in advance before doing it

This cannot be done without repercussions. Multiple warings have been provided on AFF about doing this. Although I note some have continued to indicate that there won't be any problems. Sorry, but this advice was always wrong. Put your account into credit at your own peril.

Sometimes, they actually ask you to pre-pay on to your card

Some time ago, a colleague had a six figure (personal) tax bill that he was intending to put on his Platinum. Phoned Amex to warn them and preempt any hurdles. They insisted he pre-pay 50% of the charge (putting his card into significant credit). Colleague refused. “Frank and open exchange of views” ensued. Colleague won.

Put the full charge on the card the next day; no problems

Received an invitation for a Centurion within the month - held that card ever since.