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 ( XX/XX/XXXX years ) Narrative I have been an American Express XXXX since XXXX over XX/XX/XXXX years. Throughout that period, I maintained an excellent payment history, frequently paying my balance weekly or multiple times per month. My credit score was high, and I had a {$20000.00} credit limit with utilization consistently undeXX/XX/XXXX 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 an archaic and complex 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 XX/XX/XXXX 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 underXX/XX/XXXXto 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, Citibank reduced my credit limit on a card I have held since XXXX ( account ending XXXX ). On XX/XX/XXXX, Citibank 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 toXX/XX/XXXXinterest 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.

Company response to consumer: Closed with explanation