Consumer complaint received 2026-03-04 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: AMERICAN EXPRESS COMPANY
State: TN

Complaint narrative:
CFPB Complaint American Express Product : Credit Card Issue : Credit limit reduction with inadequate notice causing cascading harm across multiple credit accounts Company : American Express Account : Ending in XXXX Member Since : XXXX ( 18 years ) Narrative I have been an American Express XXXX since XXXX over XXXX years. Throughout that period, I maintained an excellent payment history, frequently paying my balance weekly or multiple times per month. My XXXX XXXX was high, and I had a {$20000.00} credit limit with utilization consistently under 25 %. In XX/XX/XXXX, my contract position was unexpectedly cut short. I secured new employment by approximately XX/XX/XXXX. During that brief gap, I relied on my credit cards for essential expenses which is precisely the purpose credit products are designed to serve. When I started my new job, I incurred additional work-related expenses that required reimbursement through my employers expense report process. Because the new employer used a manual, paper-based system, reimbursement took significantly longer than expected. On XX/XX/XXXX, American Express sent me an email stating they were reviewing my credit limit and demanding a payment of {$2100.00} by XX/XX/XXXX a window of just XXXX calendar days to avoid a credit limit reduction. This timeframe was wholly inadequate. It did not allow for standard brokerage settlement periods ( typically XXXX business days ) to liquidate assets, nor did it account for the reality that a working person can not always arrange a significant payment in XXXX hours. On XX/XX/XXXX, American Express reduced my credit limit from {$20000.00} to {$8900.00} a 55 % reduction. My cash advance limit was reduced to {$200.00}. The XXXX XXXX This single action by American Express triggered a devastating cascade. Because my utilization ratio on this card spiked dramatically ( from under 25 % to a much higher percentage on a now-smaller limit ), other credit issuers automated risk systems flagged the change and followed suit : On XX/XX/XXXX, XXXX reduced XXXX credit limit on a card I have held since XXXX ( account ending XXXX ). On XX/XX/XXXX, XXXX reduced my credit limit on a second card ( account ending XXXX ). I did not miss payments on any of these accounts. The only trigger was the utilization ratio change caused by American Expresss initial reduction. The result : I went from manageable, low-utilization balances across multiple cards to being near maximum on all of them not because I increased my spending, but because the available credit underneath my existing balances was removed. My minimum monthly payments increased from approximately {$300.00} to over {$1000.00}. I lost access to 0 % interest balance transfer offers that could have helped me manage the situation. By the time my expense reimbursement arrived, I needed it entirely for the new, higher minimum payments. XXXX XXXX On XX/XX/XXXX, American Express sent another email demanding a payment of {$1300.00} by XX/XX/XXXX again, just XXXX calendar days or they will reduce my credit limit further. I called American Express and explained the full situation. The representative acknowledged my XXXX XXXXears of membership and thanked me for my loyalty, but stated there was nothing she could do and that the only option was to watch and see if they lower my limit again. I explained that XXXX days is insufficient to liquidate investments ( brokerage settlements take XXXX business days ), and was told nothing could be done. Why This Is Unfair I am not asking for special treatment. I am asking the CFPB to examine whether American Expresss practice of issuing XXXX ultimatums that trigger cascading credit damage across a consumers entire credit profile constitutes an unfair practice under UDAAP ( Unfair, Deceptive, or Abusive Acts or Practices ). The harm to me was substantial and unavoidable. I could not reasonably prevent it within the notice period given. American Expresss action did not just reduce my limit on their card it destroyed my credit utilization ratio across all accounts, triggering automatic reductions by other issuers and converting what was a temporary, manageable situation into an ongoing financial burden. Credit cards exist to bridge temporary financial gaps. I used mine for their intended purpose, maintained payments throughout, and was punished with a self-reinforcing cycle of limit reductions that no amount of responsible behavior could stop. Timeline of Events XXXX Became American Express XXXX XX/XX/XXXX American Express increases my credit limit ( account XXXX ) XX/XX/XXXX Contract position cut short ; temporary unemployment ~May XXXX, XXXX Started new employment ; incurred work expenses pending reimbursement XX/XX/XXXX Amex email : pay {$2100.00} by XX/XX/XXXX ( XXXX days ) or face limit reduction XX/XX/XXXX Amex XXXX credit limit from {$20000.00} to {$8900.00} XX/XX/XXXX XXXX XXXX limit on card ending XXXX ( member since XXXX ) XX/XX/XXXX XXXX XXXX limit on second card ending XXXX XX/XX/XXXX Amex email : pay {$1300.00} by XX/XX/XXXX ( 3 days ) or face further reduction XX/XX/XXXX Called Amex ; told nothing can be done

Company response to consumer: Closed with explanation