Shop at Wal-Mart, American Express Lowers Your Limit
Nice price, but don't use your American Express there!
Kevin Drum blogs on Mother Jones that there’s yet another reason to rely upon a cash advance when you need emergency funds. Actually, that’s my interpretation, because it’s an easy connection to make. And for many thousands of people, it would be exceedingly more useful than depending upon a credit card that judges you based upon where you shop. Whether they’re attempting to be a social crusader or simply being snooty, American Express is apparently monitoring cardholders’ credit statements closely. If you shop at Wal-Mart, your credit limit could be lowered.
That’s what happened to Kevin Johnson, according to the Atlanta Journal Constitution. He actually received a letter from American Express which stated that “other customers who have used their card at establishments where you recently shopped (Wal-Mart) have a poor repayment history with American Express.” In other words, American Express persecuted Johnson for value shopping. They lowered his limit to reduce their “risk of exposure.” And in other news, misguided legislators are chomping at the bit to take away consumers’ right to choose payday loans when they need extra cash.
What is AMEX’s official response?
AMEX spokeswoman Lisa Gonzalez wouldn’t name any names, but she doesn’t have to, does she?
We’re just doing this to manage risk… customers who have loans outstanding with certain lenders or customers who make transactions with certain merchants tend to have a higher proportion of credit issues or a higher probability of default.
Then there’s American Express spokeswoman Susan Korchak. In a lackluster attempt at spin control, she told the New York Times that it was all “just a big misunderstanding” that the language about “establishments” where Mr. Johnson recently shopped wasn’t a way to single him or anyone else out for shopping anywhere in particular.
OK, then just what are you saying, AMEX?
Denial does not excuse you from abusing the public, American Express. It simply spreads more of your slime on the wall. And if you think people like Kevin Johnson are going to lie down and take what credit card companies like you are trying to put over on innocent people, think again. Mr. Johnson has taken it upon himself to be a consumer advocate against the likes of you. Cash Advance Mojo and his colleagues at Personal Money Store wish Kevin Johnson and like-minded citizens the best in their fight for financial freedom.
Related articles
- Carded: Customers Spied on Then Penalized (abcnews.go.com)
- NewCreditRules Asks, Which Of These Stores Will Get Your AMEX Card Reduced? [American Express] (consumerist.com)
- Credit Card/banks lowering credit limits based on WHERE you shop (americablog.com)
Okay, let me get this straight – AMEX punished this guy for shopping somewhere that would lead to a lower credit card bill by saving money? I wonder why I’m not surprised. Plenty of people with great credit shop at Wal Mart – you can get a lot of actually decent things there on the cheap. Ridiculous.
So you are saying we should use cash advance which charges a 3% fee on the transaction and then 28% APR if we don’t pay that off right away? Great suggestion – next you will be telling people to withdraw money from retirement accts and use that so credit card companies dont see where we are spending. Oh and FYI not using your card has recently been cited as reasons for CC companies to reduce your line as well.
Is Walmart the only place this man shopped? It could have been any number of places that triggered his credit line decrease. It is in the interest of all cardholders to have credit risk decreased as credit losses increase costs which will be passed on to consumers. If Mr. Johnson needs more credit, and he is a worthy borrower, he should have no trouble getting it from another lender.
The reason why he targeted Walmart is because it was the only out of ordinary transaction he had. All of his other charges were based on business as usual for the merchant. He said he had never really used his card before at Walmart.
I guess he won’t ever do that again
Thanks! Now that I got to know more about internet marketing, I am now joining the great global competition. Wish me luck!