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Randy Walker Entrepreneur, VB MVP


I am extremely particular about my credit.  During my youth I ran up a bunch of debt and poorly managed my money, ruining my credit score for years.  With a lot of hard work, years in the making, my credit score is near perfect.

All that is to say, when I apply for credit somewhere, I do it with a purpose.  I'm not a big fan of American Express, particularly because of the high rates they charge their merchants for processing (my company being one of them).  However, I applied for a small business American Express card several years ago, because they wave their yearly $100 annual fee.  It wasn't too long ago that I also applied for a Line of Credit, in case my business needed to float some cash for some reason.

Both accounts were solely based on personal credit and I was told that up front. 

So where did my problem with American Express come to view?

When they reduced my line of credit to 13% of what they originally offered.  And they did this the first time I used the line of credit over 3 months after I opened the account. (I had only used it because I didn't have a regular business check with me, yet had one of their checks with me.)

It's insulting to have a line of credit with less than $1500.  Not to mention their yearly fee was $100, which I had already paid for.

Their reason?  Because I didn't have a Dunn & Bradstreet number.  (Don't get me started on that!  I've requested a number from them on 3 separate occasions).  Yet remember that my line of credit was secured off of my personal credit, not my business credit worthiness.

Bait and switch ... I'll be filing a complaint with the FDIC.  In the meantime, I don't recommend their Line of Credit product for Small Businesses.

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Posted on Tuesday, January 29, 2008 6:23 PM | Back to top

Comments on this post: American Express Line of Credit woes and rant

# re: American Express Line of Credit woes and rant
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I thought I would update this post to let you know about the response I received from American Express.

After sending a letter of complaint to the FDIC, they forwarded it to the Department of Treasurey, Consumer Affairs Department, Office of Thrift Supervision. American Express' General Counsel's Office responded.

"A review of our records indicates that our Credit Department reduced the line of credit for the reasons included in the notification sent to you dated xyz. However, based on a recent review of your credit worthiness, our Credit Department has re-evaluated the decision. Therefore, the line of credit associated with Merchandise Purchases and Cash Advances ahs been restored to xyz on the Account. The adjustment will appear on an upcoming statement."
Left by Randy Walker on Apr 08, 2008 9:50 PM

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