Consumer complaint received 2025-01-07 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Trouble using your card — Credit card company won't increase or decrease your credit limit
Company: AMERICAN EXPRESS COMPANY
State: VA

Complaint narrative:
I am submitting this complaint regarding the actions of American Express National Bank concerning my XXXX XXXX XXXX XXXX account ending in XXXX. On XX/XX/year>, I received a letter from American Express informing me that the credit limit on my account had been reduced from {$12000.00} to {$1600.00}, with a cash advance limit of {$200.00}. 

The reasons provided for this decision are vague and arbitrary, citing only that the average of recent payments in relation to the balance was too low. The letter does not adequately explain how this determination was made, and it provides no opportunity for meaningful dispute or consideration of my overall payment history or financial circumstances. This decision appears to violate consumer protection laws, specifically : Equal Credit Opportunity Act ( ECOA ) Regulation B : The ECOA prohibits creditors from making adverse credit decisions without providing clear and specific reasons for the action ( 1002.9 ( a ) ( 2 ) ). The vague explanation provided by American Express fails to comply with the requirement to furnish detailed reasons for the credit limit reduction, thereby denying me the ability to effectively challenge or understand the decision.

Fair Credit Reporting Act ( FCRA ) : If American Express used information from my credit report in making this decision, they are obligated under 1681m of the FCRA to provide a detailed adverse action notice, including the specific information that contributed to the decision. The letter does not indicate whether credit report data was used or explain how the cited reason correlates to the reduction. 

Consumer Credit Protection Act ( CCPA ) : The CCPA broadly protects consumers from unfair credit practices. By failing to transparently communicate the basis for its actions and potentially damaging my credit utilization ratio and score without justification, American Express may have acted in a manner inconsistent with the principles of fair and equitable treatment under the Act.

This action negatively impacts my credit utilization ratio and potentially damages my credit score, despite my consistent use and payment history with American Express. The lack of transparency and failure to provide specific evidence supporting their decision undermines my confidence in their decision-making process. 

On XX/XX/year>, at around XXXX XXXX I called American Express to request further information about why my credit limit had been decreased. The same vague answer as in the letter was provided : the average of recent payments in relation to the balance was too low. When I asked the agent to clarify what this meant, they were unable to provide a substantive explanation. Instead, they demanded that I submit substantial additional information, such as details about my assets and employment history, which they had not previously requested or indicated as necessary. This lack of transparency and shifting requirements only deepens my concern about violations of consumer protection laws. 

Supporting Documents : Attached is a copy of the letter I received from American Express on XX/XX/year>.

Company response to consumer: Closed with explanation