So upset... AMEX cut my limit

[5thelement]

I know it's well within their rights to do so. And I can even understand in the current economic climate that they are just trying to protect themselves from possible defaults.

I had been saving for months to buy a new dSLR (in the $600 range) when I got bit by the Prada bug. So I posted in the Prada forum asking for suggestions on what to get, and a tpf'er told me about a purse she was selling on eBay. I asked all the questions I thought I needed, an agreement was reached (paying over time), and I bid and won. After I bid and won, I had seller drama (I posted about separately in the eBay forum), and I ultimately ended up paying pretty much in 2 weeks instead of the agreed upon 4 months timespan. I thought we eventually reached a conclusion because she accepted my payments and said she was going to ship my purse, but then she changed her mind 2 days later and refunded the money and demanded I pay with a bank account rather than a CC. When she refunded the money, AMEX jumped on that and lowered my limit by that same amount that I had just cleared space on the card in order to buy the new purse.

My mom graciously stepped in to help pay for the purse using her Paypal (she loved that purse too and wanted me to have it), but it was with a CC and her account is not registered in a confirmed address country. So the seller won't accept it on both those counts, even after I explained the whole situation and provided info about myself for verification. Won't ship to the confirmed address on the first account I paid her with, and won't ship to my work address (pretty secure cos I work for the state).

So now I'm without my purse, out the money that I had saved towards treating myself cos AMEX decided to drop my limit, and can't even get the dSLR I originally planned to get before I got the Prada bug. I'll have to start saving again all from scratch, but it'll take much longer this time cos I'll be going back to school in a few months and will revert to a poor grad student salary then. So much for saving for the last few months to treat myself, the acquisition of my first high end purse, and enjoying a little bit of luxury before I start grad school.

Just had to share my frustrations. I'm so discouraged off a nice lux purse purchase now.

[guccimamma]

i didn't realize that amex had a set limit...i have charged up to $50k without problem (a company retreat)

[UK2ME]

Let me get this straight -

1) You saved cash, which you used to "clear space" on your Amex
2) You spent that "cleared space" on your Amex on a bag
3) The transaction went bad, so the money was refunded to your Amex
4) Amex reduced your credit, leaving you "out" the "space" on your card

Just an observation - if you had to "clear space" on your Amex to buy this bag, you must be sitting right at the top of your credit limit. That means, IMHO, you probably shouldn't have been spending that money on a bag in the first place. However, that's not my judgement to make.

Think of it like Amex have done you a favour - they've forced you to pay off some of your debt. You can always save, even if it's only a little. It may take you longer than you want to save up for the next "thing" that you want, but if you want it bad enough, you will save.

Trust someone who has long battled with CC debt and the urge to splurge: it feels so much better when you can pay for it with cash. I know that's probably not what you wanted to hear, and I understand that you're just venting, but you'll be better off in the long run.

[twiggers]

Gucci: Most Amex ards let you carry a balance from month-to-month. And yes, Amex is notorious for doing this to people who only make small payments every month. They will likely to continue doing this every 3 months until your balance is $500. They do this to people they consider a high risk!

[5thelement]

Yeah, UK. I realize that it's a good thing that some of that debt is paid down. I wouldn't have cleared the space on the card if I'd known that was going to happen. I'm just disappointed. I would've had a new toy to play with if the transaction hadn't gone bad. But you're right, I would also not have cleared off that part of my debt. My limit on AMEX really isn't that high to begin with - I've always paid on time, in smaller chunks, but still higher than the monthly minimum they ask. I had no idea, no warning, and twiggers, if they do continue to do that like you say, then that would suck!!! BTW, I digress, but I notice you're earning your PhD. What in and how long have you been in your program, may I ask? I'm going to start on my program this September also, and am a little scared of not having a salary to depend on anymore.

[beljwl]

The exact same thing just happened to my boss. She was at her limit so she paid them $7500 toward her balance and then they lowered her limit by $7500. Now she has $4.00 left on it to spend.

[heartnaspade]

Originally Posted by 5thelement

Yeah, UK. I realize that it's a good thing that some of that debt is paid down. I wouldn't have cleared the space on the card if I'd known that was going to happen. I'm just disappointed. I would've had a new toy to play with if the transaction hadn't gone bad. But you're right, I would also not have cleared off that part of my debt. My limit on AMEX really isn't that high to begin with - I've always paid on time, in smaller chunks, but still higher than the monthly minimum they ask. I had no idea, no warning, and twiggers, if they do continue to do that like you say, then that would suck!!! BTW, I digress, but I notice you're earning your PhD. What in and how long have you been in your program, may I ask? I'm going to start on my program this September also, and am a little scared of not having a salary to depend on anymore.

You already said that you recognize that the economy is unstable right now, so consider it a very good thing that the transaction did not go through. If you already have credit card debt, in my opinion you should be doing everything you can to get rid of it NOW. As the economy weakens and things like gas and food become more expensive, you're not going to want something like that hanging over your head. I know it's disappointing now, but think about treating yourself after you're out of the red.

[UK2ME]

5thelement,I woke up this morning and figured I may have been a little harsh last night. It's none of my business to moralise about your CC balance, or to dictate how you spend your diligently saved cash.

I hope that you do manage to save up again to get your bag; I do understand how having something nice at the expense of paying off some debt right this minute can be an incentive to keep saving. Might I suggest something a little cheaper than a Prada as a place to start, though?!

[IntlSet]

Originally Posted by heartnaspade

You already said that you recognize that the economy is unstable right now, so consider it a very good thing that the transaction did not go through. If you already have credit card debt, in my opinion you should be doing everything you can to get rid of it NOW. As the economy weakens and things like gas and food become more expensive, you're not going to want something like that hanging over your head. I know it's disappointing now, but think about treating yourself after you're out of the red.

I agree.

Also, what kind of AmEx do you have? Is it a credit card AmEx (like the Blue card) or one you have to pay off every month (like the Gold card)? But if you REALLY do need a high limit for whatever reason (preferably not to spend on luxury goods, however), call them and see if they'll raise your limit again. Were you making late payments or something? I can't imagine why they'd just so suddenly drop your limit. My AmEx limit has remained the same...

[5thelement]

UK, don't worry! I didn't take it personally at all. I figured the gals here in this part of the forum would understand the push and pull of wanting a purse and keeping the spirit of being mindful with money. And many thanks for the encouragement. It was demoralizing to have that transaction go south; I just never expected it to in all honesty, and to have gotten as far as having paid for something in full and expecting to have something shipped out soon after - that hit me even harder I think.

As for getting something a little cheaper than a Prada, I appreciate the suggestion and if I had a bad bad purse itch right now, I may just go that route. But I think it's more a Prada purse itch, so I'll just wait and save some more. I'm trying not to have many bags. I did when I was much younger - bought a variety of cheapie bags. But then they were just cluttering up the place. So now, I have 2 nice Coach purses, a backpack, and one or two other purses that I saved from my teenage years. The next one will be a Prada as that has been on my dreamlist forever - and if I can save the cash towards one, and not clutter up my closet in the meantime, I'm that much closer and my closet will thank me.

Heartnaspade, your advice is definitely sound, and is what the logical side of me continues to tell myself to soften the blow a little bit. But the emotional side of me is still cryin' boo hoo.

I have a Amex credit card where I get to carry a balance. It's not that high of a limit, and no I wasn't making any late payments. In fact, none of my cards really are in that situation. I hit a rough spot when I was a student many many years back, but since then, I've been diligent on paying my cards on time. I think it's more a reactionary move on Amex's part given the current economy, and some people get flagged and others don't. Who knows how they do their algorithms?

[UK2ME]

I'm glad you weren't offended. In that case, I look forward to seeing the pics of your shiny new Prada!

We can save together - I'm saving to get myself an as-yet undetermined Coach bag, and I've promised myself I won't do it until I have the cash in the bank and can comfortably take it out. MAN, it's hard!

[mmmpurses!]

Originally Posted by 5thelement

UK, don't worry! I didn't take it personally at all. I figured the gals here in this part of the forum would understand the push and pull of wanting a purse and keeping the spirit of being mindful with money.

You are such a good sport and I just wanted to commend you for that.

I think almost everyone here totally, totally, understand that push/pull you talking about. I am on the opposite side of the coin I am working on weaning off the SA's who keep calling me everyday. Unfortunately they know my spending habits too well. Then I've done some thinking lately and would like to be a little more mindful of the economy and I've been thinking that I rather help some of the people we know who are struggling rather than plunk more dead money into bags.

[socalgem]

I agree that Amex did the OP a favour.

If you have an Amex Charge card, you need to pay that at billing date. If you have a Credit card with them then you can carry a balance if you can't pay it in full. I wouldn't suggest carrying a balance, but I know that everyone can pay in full like I do.

My limits on AMex credit cards were always high.

[meeowy]

I have the exact opposite problem. One of my credit card's company kept raising my limit, I didn't even know they could do that without my approval. What a hassle!

[lvpiggy]

ugh that is irritating. i'm sort of . . . "off" AMEX now, as most ladies know from my own thread of AMEX trials and tribulations . . . how sad. i used to be such a huge fan. now i never want to see/use the card again