"Credit Limit Decrease."

Dillard's American Express® Credit Card Review
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Written by: adicus on 2008-08-02

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adicus's review: Callout Comment Started off with private label card w/ $200 CL on 10/07.

Automatically upgraded to Dillard's Amex in January w/ $3,800. I purchased $2,200 worth of new clothes for a trip to Spain and paid the balance in full 5 days later since I was going to out of the country for 2 months. Carried a zero balance for 5 months and today I logged into my account to check in and saw that I had my credit limit decreased from $4,600 down to $220! I called and CS informed me that they reduced my CL due to lack of use and that they are being more conservative as far a CL go. I told her to close the account and she transferred me to retention, which by the way had the nerve to sell me account protection insurance. I told her to insure her financial future by getting another job, because if they decrease credit limits from stellar customers, that means the future is uncertain for them.

I stuck the credit card which by the way still looked flawless, right in the shredder. Cash is King in my books again.!


Comment 1 by mark
AMEX Is DEAD Wrong Here User Icon on 2008-08-02

Remarks American Express is continuing to anger consumers both NEW and LOYAL ones.

didn't they do a feasibility study? Or maybe even a SURVEY before they ACTUALLY implement this credit limit decrease WAVE?

I don't know. Unless the Whole AMEX corporation is planning to do a diferent business like sell burgers and fries... The Company is going downhill.
Comment 2 by adicus
Mark. User Icon on 2008-08-02

Remarks The Dillard's Amex is solely controlled by GE Consumer Finance. I got a call a bit ago from someone at GE informing me that they can re-instate my account if they can re-run my credit and I flat out said Hellz No! I will be shopping at Macy's from now on.

Also on another note:

I called Lowe's (GE) about a $1.21 finance charge that was on my bill that shouldn't have been charged because of a promotion I signed up for, and they asked me how much I made and how do I like my Lowe's card and blah, blah... She told me she approved me for a $1,800 increase! Huh? Whats going on? Same lender different criteria I guess.
Comment 3 by hjm331
RE: Mark User Icon on 2008-08-02

Remarks Adicus is right, this card is issued by GEMB and AMEX doesn't have anything to do with this.

Adicus, is the Lowe's card good with CLI's? I've had a Lowe's card for a few months now but still have to make my first purchase before they close my account for inactivity.
Comment 4 by adicus
Hjm331 User Icon on 2008-08-02

Remarks Actually it is. I've been able to get great increases by requesting a credit line increase via online account. I would definitely buy something or they might close or decrease you credit line. Cheers.
Comment 5 by meya
Re: Adicus User Icon on 2008-08-02

Remarks Same thing over here, I received a finance charge for a purchase that I got on the 12 month no interest nor payment. I called them and they credit it for me. Then I received another invite to purchase with the same promotion (you know the part that be on top of our statement asking us to take it to the cashier for them to scan it) and they did the same thing again with a payment due at that. They re fixed this again but my problem is, what if we did not look at our accounts because we are sure of everything being deferred until the promotion is over? They will put a late payment on us quick. GE is very quick to put something on your report that they made an error on, but what happens when your other creditors see that? They are going to start raising our Apr's and decreasing our Cl's.
Comment 6 by mrrob
Wow User Icon on 2008-08-02

Remarks Wow that's a tuff pill to swallow. They decreased your limit that quick? I h ope all works out for you
Comment 7 by eric
WOW! User Icon on 2008-08-03

Remarks Adicus what they did to you was horrible... Decreased due to not using the card? Hmmm $2200 worth of clothing sounds like good use on the card... Then to boot a PIF customer. ALL BANKS ARE DOING THIS. Including BofA... But there CL decreases are justified. Usually when we do a CL decrease its because of risk. Ie. Habitual Balance xfer hoppers, credit to debt ratio, debt to income ratio and so on. I had a customer bi*ching a storm because they were on vacation and we cut his line from $10k to $6500, this customer was $117k in credit card debt. Also they are closing and pulling credit if your report shows some serious delinquency with your mortgage payments.
Comment 8 by thomas1
CL DECREASE! User Icon on 2008-08-03

Remarks This is why I hate any branded Amex card, whether GEMB or Amex itself... They did it to me also. I charged over 200k per year, 90% corporate use, never late, PIF, and decreased my optima account, to half its original line. This was in the mid 90's and I called to close them both!

Economic trends are going downward fast, banks are tightening credit policy, and the bigger banks along with Amex are monitoring our reports VERY closely, almost every month or so... They see something they don't like, just like stated on this response topic, and WACK, decreased... I think they will do it whether or not the card is used heavily or not.

They are exercising their power when they see potential risk involved with consumers, ie debt to credit limit ratios, or utilization. Its a no win situation!
Comment 9 by arod
Credit Limit Decrease User Icon on 2008-08-03

Remarks There are three banks that are doing the credit limit decrease due to a bad economy and markets as well as the foreclosure..

The three banks are as this read this in bankers

American Express,Well Fargo, Chase also

Ge money bank will not raise your credit line for now..

Make sure the banks listed here are paid on time and use them even for bus fare.

non active credit can now be canceled.

I work for a Canadian bank that I cannot give the name but I always read this bankers magazine that great!!

I will keep you guys posted.

Comment 10 by arod
Credit Limit Decrease 2 User Icon on 2008-08-03

Remarks My brother Chase Visa BP card was $15,000 for not using the card for like 3 months they lowered his card to $4300.00

I hope all this info helps others

Take care,

Comment 11 by arod
ALSO User Icon on 2008-08-03

Remarks The Canadian bank I work for has offices in NEW YORK so Im not in Canada.

just in case.

Comment 12 by adicus
FICO Took A Hit. User Icon on 2008-08-03

Remarks Purchased my FICO scores for August and saw that my scores dropped 25 points. Like the banks, I plan to be conservative as well; I will be paying off HOOTERS, HSBC and a few other high interest/annual fee credit cards and closing them.
Comment 13 by eric
A Tip On GEMB User Icon on 2008-08-13

Remarks When I was a collections manager for them I would always see Lowes accounts that had promos but were not scanned or scanned correctly. Make sure you check your statement from Lowes or Sams Club because those two were the headaches.
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