Amex suddenly reduced credit limit of Gold Charge and Plat Travel card

[0xShailesh]

Hey guys, Namaste.

So basically, i got my amex plat travel last year in august. And gold charge 4 months ago.

Amex increased my credit limit of plat travel intially from INR 99,000 to INR 1,49,000 after 6 months when i called them. Gold charge card had a shadow limit of around 8L.

Now today, when my plat travel statement is generated, i got a mail, stating my credit limit has been reduced on my plat travel to INR 32,000. which is roughly -80% of what i had. The gold card's shadow limit is less than 1L now (although i didn't get any specific mail about the gold card).

I'm curious to why this had happened.

Here are few things to know -

1. I spend roughly around 20-30k every month on my gold charge. Basic living expense like food etc for family.
2. Always paid my bills in Full. Never missed a payment.
3. My cibil dropped 3 points this month.
4. Mobikwik Zip BNPL sent an incorrect late payment to CIBIL, Experian and CRIF in Feb 24. Although, Cibil's slate was made clean, Experian and CRIF still persists to this day. (However my gold card was approved with this shit on all the reports, as amex didn't pull the report then).
5. I made 2 transaction on a mobile website last month, whose bill was generated today, for the first trx the company didn't have the item in stock and didn't refund my money for more than 7 business days. So i filed a chargeback. For the 2nd trx, i got the device, but it had major scratches and dents, was sold a superb device. As usual the company, just ignored all my emails for return. So i filed 2nd chargeback.
6. These 2 trx was converted to EMI. I have only done 2 EMI's before this.
7. My dad has a supplementary card, and he uses it, regularly for his personal and business spends.
8. I expect my ITR to be lower than last year's one. Since i'm focusing more on my preparation for masters. But amex doesn't know that, since ITR not ready yet.

If someone know the reason, or if there is something i can do. Please assist. Thank you.

 

[aayusharyan]

Hey guys, Namaste.

So basically, i got my amex plat travel last year in august. And gold charge 4 months ago.

Amex increased my credit limit of plat travel intially from INR 99,000 to INR 1,49,000 after 6 months when i called them. Gold charge card had a shadow limit of around 8L.

Now today, when my plat travel statement is generated, i got a mail, stating my credit limit has been reduced on my plat travel to INR 32,000. which is roughly -80% of what i had. The gold card's shadow limit is less than 1L now (although i didn't get any specific mail about the gold card).

I'm curious to why this had happened.

Here are few things to know -

1. I spend roughly around 20-30k every month on my gold charge. Basic living expense like food etc for family.
2. Always paid my bills in Full. Never missed a payment.
3. My cibil dropped 3 points this month.
4. Mobikwik Zip BNPL sent an incorrect late payment to CIBIL, Experian and CRIF in Feb 24. Although, Cibil's slate was made clean, Experian and CRIF still persists to this day. (However my gold card was approved with this shit on all the reports, as amex didn't pull the report then).
5. I made 2 transaction on a mobile website last month, whose bill was generated today, for the first trx the company didn't have the item in stock and didn't refund my money for more than 7 business days. So i filed a chargeback. For the 2nd trx, i got the device, but it had major scratches and dents, was sold a superb device. As usual the company, just ignored all my emails for return. So i filed 2nd chargeback.
6. These 2 trx was converted to EMI. I have only done 2 EMI's before this.
7. My dad has a supplementary card, and he uses it, regularly for his personal and business spends.
8. I expect my ITR to be lower than last year's one. Since i'm focusing more on my preparation for masters. But amex doesn't know that, since ITR not ready yet.

If someone know the reason, or if there is something i can do. Please assist. Thank you.

How do you check the Shadow limit, I always had to call them and ask about it. Their online spends checker seems to not be working.

 

[Shubham330Shubham330 is verified member.]

Amex takes limt from all three experian crif and cibil. The most probable reason for limit decrease is the mistaken default in your report.

Raise dispute with their dispute resolution system. Cibil, experian have their own. No idea on crif.

Once that default is clear you can request amex for limit increase again with c2c or payslips. But do it only after that default has been removed from reports.

 

[0xShailesh]

How do you check the Shadow limit, I always had to call them and ask about it. Their online spends checker seems to not be working.

By calling, and providing a random number i want to spend.

 

[aayusharyan]

By calling, and providing a random number i want to spend.

Yeah, same same. I guess the most likely reason is the default in your Credit Report as pointed by others.

 

[0xShailesh]

Amex takes limt from all three experian crif and cibil. The most probable reason for limit decrease is the mistaken default in your report.

Raise dispute with their dispute resolution system. Cibil, experian have their own. No idea on crif.

Once that default is clear you can request amex for limit increase again with c2c or payslips. But do it only after that default has been removed from reports.

already did, crif came back stating the bank said no change is required. Experian came back stating i need to contact the bank. Multiple emails sent to Mobikwik and Herofincop. They even acknowleded the incorrect late payment and overdue 4 months ago. But still didn't remove it from CRIF and EXPERIAN. Despite multiple follow-ups to this day. Yesterday i sent them a letter. Letter attached.

 

[SSV]

Hey guys, Namaste.

So basically, i got my amex plat travel last year in august. And gold charge 4 months ago.

Amex increased my credit limit of plat travel intially from INR 99,000 to INR 1,49,000 after 6 months when i called them. Gold charge card had a shadow limit of around 8L.

Now today, when my plat travel statement is generated, i got a mail, stating my credit limit has been reduced on my plat travel to INR 32,000. which is roughly -80% of what i had. The gold card's shadow limit is less than 1L now (although i didn't get any specific mail about the gold card).

I'm curious to why this had happened.

Here are few things to know -

1. I spend roughly around 20-30k every month on my gold charge. Basic living expense like food etc for family.
2. Always paid my bills in Full. Never missed a payment.
3. My cibil dropped 3 points this month.
4. Mobikwik Zip BNPL sent an incorrect late payment to CIBIL, Experian and CRIF in Feb 24. Although, Cibil's slate was made clean, Experian and CRIF still persists to this day. (However my gold card was approved with this shit on all the reports, as amex didn't pull the report then).
5. I made 2 transaction on a mobile website last month, whose bill was generated today, for the first trx the company didn't have the item in stock and didn't refund my money for more than 7 business days. So i filed a chargeback. For the 2nd trx, i got the device, but it had major scratches and dents, was sold a superb device. As usual the company, just ignored all my emails for return. So i filed 2nd chargeback.
6. These 2 trx was converted to EMI. I have only done 2 EMI's before this.
7. My dad has a supplementary card, and he uses it, regularly for his personal and business spends.
8. I expect my ITR to be lower than last year's one. Since i'm focusing more on my preparation for masters. But amex doesn't know that, since ITR not ready yet.

If someone know the reason, or if there is something i can do. Please assist. Thank you.

Item 4 played a major role and item 5 reinforced it in this CL devaluation

 

[0xShailesh]

Item 4 played a major role amd item 5 reinforced it in this CL devaluation

so what are my options, from my point of view i didn't have any control over both of them..

 

[Pissant]

already did, crif came back stating the bank said no change is required. Experian came back stating i need to contact the bank. Multiple emails sent to Mobikwik and Herofincop. They even acknowleded the incorrect late payment and overdue 4 months ago. But still didn't remove it from CRIF and EXPERIAN. Despite multiple follow-ups to this day. Yesterday i sent them a letter. Letter attached.

If this latest email gets unsatisfactory response write to RBIO

 

[aayusharyan]

so what are my options, from my point of view i didn't have any control over both of them..

Give it time first of all while you get your reports corrected, then contact AmEx for an LE.

 

[Pissant]

so what are my options, from my point of view i didn't have any control over both of them..

Don’t do anything too suspicious and get those incorrect late payments removed.

 

[SSV]

so what are my options, from my point of view i didn't have any control over both of them..

Bite the bullet and move on, do as much as you can in remedying those and start building the good relationship with Amex.. over the time they will increase.. and after a year or so show them your increased ITR, if available.

 

[aayusharyan]

If this latest email gets unsatisfactory response write to RBIO

 

[0xShailesh]

If this latest email gets unsatisfactory response write to RBIO

i want to, but from what i've seen there a compensation mechanism for INR 100 every day until the issue is fixed. So i didn't rush too much.

 

[Pissant]

i want to, but from what i've seen there a compensation mechanism for INR 100 every day until the issue is fixed. So i didn't rush too much.

I think that is after you write to them. All of these days before you write to them are not counted. Not sure though.

 

[0xShailesh]

I think that is after you write to them. All of these days before you write to them are not counted. Not sure though.

No, i have sent them probably around 100 emails since 17th feb.

 

[Pissant]

No, i have sent them probably around 100 emails since 17th feb.

No I was talking about RBI Ombudsman

 

[0xShailesh]

No I was talking about RBI Ombudsman

actually, from what i understand the RBI rules states the compensation stuff is to be done between the company and the individual. Only if the company denies to compensate, one needs to file a complaint with RBIO. But i'm too dumb, let me double check..

 

[Pissant]

actually, from what i understand the RBI rules states the compensation stuff is to be done between the company and the individual. Only if the company denies to compensate, one needs to file a complaint with RBIO. But i'm too dumb, let me double check..

From my understanding it goes like this:

Problem with the bank: Write mail to bank.
No/unsatisfactory response: Write to Rbi O
Rbi O will then tell bank to resolve issue if they agree with you. Now if the bank was wrong you will maybe get compensation and every day longer they take to fix problem you will definitely get 100.

 

[0xShailesh]

From my understanding it goes like this:

Problem with the bank: Write mail to bank.
No/unsatisfactory response: Write to Rbi O
Rbi O will then tell bank to resolve issue if they agree with you. Now if the bank was wrong you will maybe get compensation and every day longer they take to fix problem you will definitely get 100.

oo i see. okay will do thanks.