Consumer complaint received 2023-07-13
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers — Confusing or misleading advertising about the credit card
Company: AMERICAN EXPRESS COMPANY (OH)

XX/XX/2023 - I was sent an email offer for a promotion to lower my interest rate on purchases to 3.99 % for a defined period of 6 months. 

XX/XX/2023 - I accepted the promotion that was offered. 

From XX/XX/XXXX - XX/XX/XXXX I used my card on purchases more frequently than usual because of the lower 3.99 % rate that was offered. Rather than use other credit cards which were at a much higher rate, I enjoyed taking advantage of the offer made by American Express. I also saw this as an opportunity to earn Skymiles under a lower purchase rate. 

During this time period I have made all of my payments on time and was even offered a card upgrade on numerous occasions. Holding a higher than normal balance during this time was completely reasonable given the lower rate. There were no excessive purchases and my balance to available credit limit remained below 50 %, despite the promotion. Once again, I was offered this promotion to clearly use the card for purchases during this time period, which I did. 

XX/XX/2023 - I received a surprising email correspondence indicating my credit limit was being reviewed for a reduction and if I made a significantly large payment of XXXX  within 3 days, that review would no longer occur. Let me add, this was sent during the promotion period. The demand felt like ransom in nature and completely contradicted the offer that I accepted in XXXX to use this card for purchases at the promised 3.99 %. 

I made a phone call to American Express to ask for a more defined explanation and to communicate my concerns of the credit impact this would have on myself if they reduced my credit limit. I explained that it felt unfair to be offered a promotion intended to encourage more usage of my credit line and then have them turn around and reduce it, ultimately hurting my credit score with all applicable bureaus. 

The customer service representative shifted accountability to another department and assured me this was only a review that occurs. I was still concerned but felt American Express would review my conversation with their customer service representative and realize how misleading the promotion has been as well as the negative impact this will have on their customer. 

No further communication was received by American Express. 

XX/XX/2023 - I received an email correspondence that my credit line was reduced. Not only was it reduced, it was reduced so low, my balance is nearly at that limit. My credit scores will be negatively impacted and this will certainly impact our family in the event we need to seek financing in the near future. 

I realize American Express has the authority to reduce a credit line under certain defined circumstances. However, this decision was made after a promotion was accepted that encouraged purchases, all payments were made on-time, and my concerns were communicated regarding the unfair impact this may have on myself. 

While this does negatively impact my family, I am sure this practice has created financial setbacks for many other families. It was enticing, misleading, and felt bullying in nature.