I just lost half of the line of credit I use for my business.
I always check my accounts by computer to see that everything is going according to hoyle. I was going to make a payment on my American Express Credit Line account.
What? My line of credit was half of what it used to be, and I had no warning this was going to happen. I could have written a check over my current limit and had it bounce, or I could have been the victim of a fee for exceeding my credit allowance.
It gets worse. I called to have the original credit amount restored. The following is a paraphrased statement of what I was told. "Ah, no, and that's because we can't afford to have these accounts. And furthermore, your card and checks will no longer be valid on January 15, 2009."
Now, American Express was recently granted "Bank" status, which will put them in line for bailout funds, but it hasn't happened, yet.
Because of inept people, America will soon be on a "Cash Only" basis. While this can be a good thing, it will be like pulling the plug on a record player and hearing the rate of commerce come to a grinding halt.
What is ironic is the fact that I have access to $34,000 in credit in other accounts with American Express, little of which I use. But the one account that is highly useful in my business will soon be gone.
I have less than two months to rearrange my finances, but I guess it could be worse.
If American Express thinks it has problems now, guess what will happen to it when people stop using American Express and go elsewhere, like I will probably do.
Tit for tat, No?
When American Express stopped the 5% discount on gas purchases and reduced the discount to 3%, I stopped using that card. If a company can't uphold its agreement with its clients, then why should anybody do business with them?
