Consumer complaint received 2024-08-27
Product: Payday loan, title loan, personal loan, or advance loan — Personal line of credit
Issue: Credit limit changed — 
Company: AMERICAN EXPRESS COMPANY (PA)

I applied for a business line of credit, as a sole proprietor with no established business credit ( filing here because I have personally been sued for the debt, not the business ). I researched different products and decided based on limited years in business ( 3 years, 2 during COVID! ) and unestablished business credit, that kabbage would be the best product. The reason was because it would use AI to link to business account during application process, which would give most current revenue/profit. 

I was approved XX/XX/XXXX for {$15000.00} and they immediately increased it, without asking, to {$15000.00} XX/XX/XXXX. 

I never missed a payment. XXXX XXXX, XXXX, I received email saying product name is now American Express business blueprint and not business line of credit. 

Somewhere from XXXX XXXX, my business line of credit was dropped by more than half. I didn't receive any emailed statements for XXXX or XXXX, which was new ( maybe American Express was having issues with this product and making changes?, note product name change ). Account was setup for automatic payments. My last emailed statement before the drop was XX/XX/XXXX, with which the line of credit was still XXXX. My XXXX statement was dropped to XXXX according to XXXX emailed statement. Online account did not have messages available. 

We hit a hard time at end of XXXX, which is usually right before we hit our peak in XXXX months. XXXX XXXX was declared a drought in XXXX We had all of our residual accounts need to be go 3 weeks with no services, meaning we don't get paid. I also promoted someone manager for first season, since I had a safety net of a business line of credit. 

I logged into my line of credit to find that it was dropped by more than {$8000.00}, more than half. No mesages on portal. No emails. Quarterly taxes were upcoming. My wife was having health problems post COVID impacting her income. Everything began to fall apart. 

I became behind in business taxes, borrowed from family just to make payroll, and our financial situation only got worse. That is when we stopped paying American Express line of credit and began our fight to stay in our home and keep the business going. My wife became a laborer to help business stay afloat and save on payroll. We had to let go of our new manager for XXXX season ( who we helped start XXXX XXXX XXXX XXXX  and gave him all the accounts near his home ). 

My wife and I filed for mortgage assistance in XX/XX/XXXX. We needed assistance for electric from state of XXXX XXXX XXXX XXXX. Hardship modification in XXXX XXXX  We have still been late on our mortgage until this month, XX/XX/XXXX because we are trying to pay down our debts now. American Express is the only product I have not entered a payment agreement with due to the issues caused by dropping our line of credit. My credit was around XXXX when I applied for this line of credit... it is now in XXXXXXXX XXXX 

I do not see how any small business can function with a product that drops your line of credit by more than half in 2 months. 

The letter I did receive, which I can not find/locate, was weeks later stating it was due to credit usage on other accounts. 

We almost lost our home and business not to mention the huge amount of stress and now credit issues. I believe a resolution would be for them to reopen my line of credit as it was and give me opportunity pay them back and grow my business. Please just give me the product I signed up for and let them cancel it if I can not make payments. This set me up for failure, as I see it!