Financial Review discussion [2009-2013]
May 20, 2010, 5:46 pm
#121
FlyerTalk Evangelist
Join Date: Aug 2001
Programs: DL GM, AA Gold, Hilton Diamond, Bonvoy Plat
Posts: 12,171
If you read my multiple posts I described how Amex can "game the numbers" by handing out many new small accounts and many small credit line increases. Thus Amex can report they are actually lending more, and abiding by the bank charter and doing what was implied by TARP and having the waiting period to become a bank waived.
If you want to post some facts about Amex, I'll be happy to continue debate them. If you want me to believe what you say, just because you're saying it, I'm sorry again, but I don't.
The data in slide 37 above is pretty straight forward: 3.25% monthly peak CLDs at the height of the liquidity crisis, and less than 1% now. The presentation above is fact that been presented to Wall Street and Amex's investors. Its accuracy is subject to SEC and institutional investor oversight. You're welcome to disbelieve it, but what evidence do you have to back up your claims that aren't anecdotal?
Amex took the TARP money because they thought the short term capital markets which they relied on for their revolving arm was going be in a state of siege for some time. That didn't happen, and Amex repaid TARP a year ago. Why do you keep bringing it up?
Last edited by skofarrell; May 20, 2010 at 6:02 pm
May 20, 2010, 6:03 pm
#122
Join Date: May 2002
Location: Arizona
Posts: 5,693
Because taking TARP came with a certain understanding that Banks would continue to lend to responsible and credit worthy borrowers.
Some bankers at the infamous TARP meeting with Paulson were angry and did not want TARP. These bankers lent money responsibly and did not need TARP. TARP was shoved at these banks. Read about it in the WSJ or NYT.
But now back to Amex. Amex was not a bank. You have rules/guidelines to become a bank. Application waiting periods required by the OTS, etc. All waived so Amex could get the TARP money.....and that money came with an understanding that you will use it to keep lending to responsible and credit worthy customers. What I referred to prior as a moral obligation.
Some bankers at the infamous TARP meeting with Paulson were angry and did not want TARP. These bankers lent money responsibly and did not need TARP. TARP was shoved at these banks. Read about it in the WSJ or NYT.
But now back to Amex. Amex was not a bank. You have rules/guidelines to become a bank. Application waiting periods required by the OTS, etc. All waived so Amex could get the TARP money.....and that money came with an understanding that you will use it to keep lending to responsible and credit worthy customers. What I referred to prior as a moral obligation.
May 20, 2010, 6:08 pm
#123
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Join Date: Aug 2001
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OK, so holding on to TARP money for 5 months, which it turns out after the first 6-8 or so weeks they didn't really need, means that they have to act like a not for profit lending institution forever? Remember, Amex didn't sell mortgages. They were a victim of the crisis as much as the next guy.
If we were arguing about Citi, or WaMu or Merrill I'd get it. We aren't though.
If we were arguing about Citi, or WaMu or Merrill I'd get it. We aren't though.
May 20, 2010, 6:56 pm
#124
Join Date: Jan 2010
Location: LAX
Posts: 380
I too had an unfortunate experience of going through the "financial review".
And the bottom line for me now is that, AmEx sucks really big time.
I had multiple automatic payments setup thru AmEX, and when ALL my AmEx accounts were frozen,
I had to get all the necessary paperwork quickly to satisfy their stupid requirement and get them unfrozen.
This draconian method is not a professional way to treat your customers.
Also what's up with their "financial reviewers" identifying themselves as "Mr. X" or "Mrs. Y"?
They presented themselves as DYKWIA of the financial world, and acted like they all these power to decide on my fate?
And, I understand the credit card companies need to protect themselves,
but AmEx just went overboard in their method of identifying potential defaults.
Prior to this experience, I had all the intentions and had been using AmEx as my primary cards,
but now, I'm just gonna milk their system as much as I can and cancel the cards before the next annual fees.
In addition, I referred many friends to AmEx over the years, and I will tell them what kind of piece of crap AmEx is nowdays.
And the kicker is, I don't even know what triggered the financial review in the first place,
since I didn't deviate from my usual spendings.
And the bottom line for me now is that, AmEx sucks really big time.
I had multiple automatic payments setup thru AmEX, and when ALL my AmEx accounts were frozen,
I had to get all the necessary paperwork quickly to satisfy their stupid requirement and get them unfrozen.
This draconian method is not a professional way to treat your customers.
Also what's up with their "financial reviewers" identifying themselves as "Mr. X" or "Mrs. Y"?
They presented themselves as DYKWIA of the financial world, and acted like they all these power to decide on my fate?
And, I understand the credit card companies need to protect themselves,
but AmEx just went overboard in their method of identifying potential defaults.
Prior to this experience, I had all the intentions and had been using AmEx as my primary cards,
but now, I'm just gonna milk their system as much as I can and cancel the cards before the next annual fees.
In addition, I referred many friends to AmEx over the years, and I will tell them what kind of piece of crap AmEx is nowdays.
And the kicker is, I don't even know what triggered the financial review in the first place,
since I didn't deviate from my usual spendings.
May 20, 2010, 9:09 pm
#125
Join Date: Jan 2010
Location: Worldwide
Programs: Amex Plat, BMI Silver
Posts: 401
I especially like slide 42...
High balance customers continue to be important
– Represent affluent, high spending base
I wonder who they could be... FR victims... Maybe...
High balance customers continue to be important
– Represent affluent, high spending base
I wonder who they could be... FR victims... Maybe...
May 20, 2010, 10:02 pm
#126
Join Date: Jan 2010
Posts: 358
To my humble opinion financial reviews are of course justified, and the way Amex handles them in the USA is understandable : if they told clients in advance they could max out their card.
However I think Amex could adapt procedure :
1) for a charge or credit card client who always paid on time allowing him for example 2000 USD limit until end of procedure (at least for charge card clients)
2) in case of delinquency be as harsh as now.
3) be more investigative when studying applications from new would-be clients.
Right now my best card is a Mastercard issued in a Baltic country (not in Euros, alas), which is free the first 6 months then less than 15 dollars/year. Only 1% exchange commission. Earn miles to the biggest regional airline company. 4000 Euros/day authorized spending if money is beforehand on the card account.
I can understand people like Amex when it works, but when it stops working, and if it not a general problem of the US credit card industry like last year, I suggest to drop it out.
In Europe Amex is not so popular, and I even have to hide my Amex Platinum from my French acquaintances not to look ridiculous (even if I think it is a good card for me as long as I travel frequently).
So maybe it is the wrong board to give this opinion, but it is not good :
1) to be fetichist about one particular brand of financial services
2) when you owe money to a bank it is the bank who owns you (or the whole banking system in the USA with the Fico scoring system).
As I said in a previous post once in my life, in an African country, Amex was the only card accepted. Then I would have been annoyed not to have one, but I would have survived just as the many other foreigners who did not have one and used to have dollars in cash. Otherwise, apart from cash (and in France "cheques"), Visa and Mastercard are accepted everywhere.
We users of Flyertalk are among the best informed people on high-end credit or charge cards, and there are other forums well informed about every kind of card. So yes it is helpful to know that in some cases Amex decisions have been reversed by talking to someone else from the company, or by writing to CEO.
But when a financial institution wants your financial details as it is authorized (in some cases required by law) to ask at any time, only thing to do seems to move on or to obey, to my opinion.
Of course I understand these very general thoughts do not always fit American customers with the Fico system. Interestingly in France the socialists and communists would like such a centralized system informing banks on credits taken implemented, because they think it could prevent people getting too much in debt. Maybe the problem is not with the banks but rather with the Fico system, which puts your at the mercy of any bank if it wants to limit your credit just when you are shopping around for a mortgage. ?
However I think Amex could adapt procedure :
1) for a charge or credit card client who always paid on time allowing him for example 2000 USD limit until end of procedure (at least for charge card clients)
2) in case of delinquency be as harsh as now.
3) be more investigative when studying applications from new would-be clients.
Right now my best card is a Mastercard issued in a Baltic country (not in Euros, alas), which is free the first 6 months then less than 15 dollars/year. Only 1% exchange commission. Earn miles to the biggest regional airline company. 4000 Euros/day authorized spending if money is beforehand on the card account.
I can understand people like Amex when it works, but when it stops working, and if it not a general problem of the US credit card industry like last year, I suggest to drop it out.
In Europe Amex is not so popular, and I even have to hide my Amex Platinum from my French acquaintances not to look ridiculous (even if I think it is a good card for me as long as I travel frequently).
So maybe it is the wrong board to give this opinion, but it is not good :
1) to be fetichist about one particular brand of financial services
2) when you owe money to a bank it is the bank who owns you (or the whole banking system in the USA with the Fico scoring system).
As I said in a previous post once in my life, in an African country, Amex was the only card accepted. Then I would have been annoyed not to have one, but I would have survived just as the many other foreigners who did not have one and used to have dollars in cash. Otherwise, apart from cash (and in France "cheques"), Visa and Mastercard are accepted everywhere.
We users of Flyertalk are among the best informed people on high-end credit or charge cards, and there are other forums well informed about every kind of card. So yes it is helpful to know that in some cases Amex decisions have been reversed by talking to someone else from the company, or by writing to CEO.
But when a financial institution wants your financial details as it is authorized (in some cases required by law) to ask at any time, only thing to do seems to move on or to obey, to my opinion.
Of course I understand these very general thoughts do not always fit American customers with the Fico system. Interestingly in France the socialists and communists would like such a centralized system informing banks on credits taken implemented, because they think it could prevent people getting too much in debt. Maybe the problem is not with the banks but rather with the Fico system, which puts your at the mercy of any bank if it wants to limit your credit just when you are shopping around for a mortgage. ?
Last edited by vilntrav; May 20, 2010 at 10:11 pm
May 21, 2010, 4:36 am
#127
Join Date: Feb 2003
Location: New York City
Programs: BA Gold Guest List; HH Diamond; Hyatt Diamond; SPG Gold
Posts: 2,833
However, nowhere in the respectable press have I heard the idea suggested that banks should keep the same credit standards as they had before. That seems to me the crux of the matter.
Take a look at a bank that experienced a massive loss on its loan book (that would be quite a lot of them). That loss was caused by lax credit standards. Failing to adjust those standards to reflect current conditions is arguably inconsistent with the fiduciary duties the directors of that bank owe to their shareholders.
In other words, the directors of the bank are obliged to make sure some people who would've received loans in the past do not now qualify.
Banks (like American Express) continue to lend to creditworthy borrowers; but I completely reject your premise that someone who was considered creditworthy in 2007 must definitionally be creditworthy in 2010. Personal circumstances change, the market changes, the regulatory background changes.
Congress has yet to legislate that banks must become -- if you will permit the mixed metaphor -- suicidal ostriches, heads stuck in the sand as the tide comes in.
May 21, 2010, 10:22 am
#128
Join Date: May 2002
Location: Arizona
Posts: 5,693
To my humble opinion financial reviews are of course justified, and the way Amex handles them in the USA is understandable : if they told clients in advance they could max out their card.
However I think Amex could adapt procedure :
1) for a charge or credit card client who always paid on time allowing him for example 2000 USD limit until end of procedure (at least for charge card clients)
2) in case of delinquency be as harsh as now.
3) be more investigative when studying applications from new would-be clients.
Right now my best card is a Mastercard issued in a Baltic country (not in Euros, alas), which is free the first 6 months then less than 15 dollars/year. Only 1% exchange commission. Earn miles to the biggest regional airline company. 4000 Euros/day authorized spending if money is beforehand on the card account.
I can understand people like Amex when it works, but when it stops working, and if it not a general problem of the US credit card industry like last year, I suggest to drop it out.
In Europe Amex is not so popular, and I even have to hide my Amex Platinum from my French acquaintances not to look ridiculous (even if I think it is a good card for me as long as I travel frequently).
So maybe it is the wrong board to give this opinion, but it is not good :
1) to be fetichist about one particular brand of financial services
2) when you owe money to a bank it is the bank who owns you (or the whole banking system in the USA with the Fico scoring system).
As I said in a previous post once in my life, in an African country, Amex was the only card accepted. Then I would have been annoyed not to have one, but I would have survived just as the many other foreigners who did not have one and used to have dollars in cash. Otherwise, apart from cash (and in France "cheques"), Visa and Mastercard are accepted everywhere.
We users of Flyertalk are among the best informed people on high-end credit or charge cards, and there are other forums well informed about every kind of card. So yes it is helpful to know that in some cases Amex decisions have been reversed by talking to someone else from the company, or by writing to CEO.
But when a financial institution wants your financial details as it is authorized (in some cases required by law) to ask at any time, only thing to do seems to move on or to obey, to my opinion.
Of course I understand these very general thoughts do not always fit American customers with the Fico system. Interestingly in France the socialists and communists would like such a centralized system informing banks on credits taken implemented, because they think it could prevent people getting too much in debt. Maybe the problem is not with the banks but rather with the Fico system, which puts your at the mercy of any bank if it wants to limit your credit just when you are shopping around for a mortgage. ?
However I think Amex could adapt procedure :
1) for a charge or credit card client who always paid on time allowing him for example 2000 USD limit until end of procedure (at least for charge card clients)
2) in case of delinquency be as harsh as now.
3) be more investigative when studying applications from new would-be clients.
Right now my best card is a Mastercard issued in a Baltic country (not in Euros, alas), which is free the first 6 months then less than 15 dollars/year. Only 1% exchange commission. Earn miles to the biggest regional airline company. 4000 Euros/day authorized spending if money is beforehand on the card account.
I can understand people like Amex when it works, but when it stops working, and if it not a general problem of the US credit card industry like last year, I suggest to drop it out.
In Europe Amex is not so popular, and I even have to hide my Amex Platinum from my French acquaintances not to look ridiculous (even if I think it is a good card for me as long as I travel frequently).
So maybe it is the wrong board to give this opinion, but it is not good :
1) to be fetichist about one particular brand of financial services
2) when you owe money to a bank it is the bank who owns you (or the whole banking system in the USA with the Fico scoring system).
As I said in a previous post once in my life, in an African country, Amex was the only card accepted. Then I would have been annoyed not to have one, but I would have survived just as the many other foreigners who did not have one and used to have dollars in cash. Otherwise, apart from cash (and in France "cheques"), Visa and Mastercard are accepted everywhere.
We users of Flyertalk are among the best informed people on high-end credit or charge cards, and there are other forums well informed about every kind of card. So yes it is helpful to know that in some cases Amex decisions have been reversed by talking to someone else from the company, or by writing to CEO.
But when a financial institution wants your financial details as it is authorized (in some cases required by law) to ask at any time, only thing to do seems to move on or to obey, to my opinion.
Of course I understand these very general thoughts do not always fit American customers with the Fico system. Interestingly in France the socialists and communists would like such a centralized system informing banks on credits taken implemented, because they think it could prevent people getting too much in debt. Maybe the problem is not with the banks but rather with the Fico system, which puts your at the mercy of any bank if it wants to limit your credit just when you are shopping around for a mortgage. ?
May 21, 2010, 10:33 am
#129
Join Date: May 2002
Location: Arizona
Posts: 5,693
<<if theytold clients in advance they could max out their card.
However I think Amex could adapt procedure :>>
The industry term for the above action is called "A Bust Out". All of the credit card companies have computer triggers to prevent this from happening. That is also why a large over payment on a new account will/would lock up the account until the company knows the funds are good. Same with a sudden spending pattern change or sudden drop in a FICO.
But the guy who had a high FICO and long term credit history with Amex and perfect payments history who walked into a Costco should not have had all of this Amex products turned off without warning. I understand why he would be upset because the Amex/Costco made and exclusive relationship that no other credit/charge card are accepted.
I am refering to this post on why a FR should not occur..
Originally Posted by Harlem
Here are some parameters.
First - if a guy walks into Costco thinking he has $200K of availability and is current on his payments of all 12 of his AMEX cards. Don't freeze his accounts.
Next - if a guy pays off his balance every month (even on credit cards) and there are no negative changes in his credit score then no FR.
Next - if a guy has never used more than 1/3 of his total availability (and his credit score hasn't changed) then no FR. (You reviewed him enough to give him the credit in the first place so don't back out on him now).
However I think Amex could adapt procedure :>>
The industry term for the above action is called "A Bust Out". All of the credit card companies have computer triggers to prevent this from happening. That is also why a large over payment on a new account will/would lock up the account until the company knows the funds are good. Same with a sudden spending pattern change or sudden drop in a FICO.
But the guy who had a high FICO and long term credit history with Amex and perfect payments history who walked into a Costco should not have had all of this Amex products turned off without warning. I understand why he would be upset because the Amex/Costco made and exclusive relationship that no other credit/charge card are accepted.
I am refering to this post on why a FR should not occur..
Originally Posted by Harlem
Here are some parameters.
First - if a guy walks into Costco thinking he has $200K of availability and is current on his payments of all 12 of his AMEX cards. Don't freeze his accounts.
Next - if a guy pays off his balance every month (even on credit cards) and there are no negative changes in his credit score then no FR.
Next - if a guy has never used more than 1/3 of his total availability (and his credit score hasn't changed) then no FR. (You reviewed him enough to give him the credit in the first place so don't back out on him now).
May 21, 2010, 11:19 am
#130
FlyerTalk Evangelist
Join Date: Aug 2001
Programs: DL GM, AA Gold, Hilton Diamond, Bonvoy Plat
Posts: 12,171
Costco takes Cash and Debit Cards.
Citi, BofA, GEMB, USAA, and Penfed all issue Amex network cards in the US. It's easy to carry a backup (or not carry a "real" Amex) if you're worried about the F/R.
No one says an F/R isn't inconvenient. But an F/R isn't going to ruin your life.
Citi, BofA, GEMB, USAA, and Penfed all issue Amex network cards in the US. It's easy to carry a backup (or not carry a "real" Amex) if you're worried about the F/R.
No one says an F/R isn't inconvenient. But an F/R isn't going to ruin your life.
May 21, 2010, 12:28 pm
#131
Join Date: May 2002
Location: Arizona
Posts: 5,693
Who carries cash anymore!? I mean over a few hudred$? Even our own United States Government is trying to hush up the fact that at least two other countries have made such a good copy of our hundred dollar bill that NO ONE can tell except the US Engraving Dept. FYI That is why we have a new $100 coming out an expedited manner. God knows why we could not keep up with the other countries in technology.
WE AGREE each person should carry a backup. The Amex product is advertised/sold as a way to track your expenses by putting EVERYTHING on the card. Large families and business are similar. It causes accounting nightmares and a switch is difficult. The United State Government does not even issue a backup card.
Many people do not want a lot of card products. People like me may be in the Flyertalk hall of shame because they pass on free mile opportunity because it is not worth the accounting trouble to spend $750 on a different card for 30,000 miles
WE AGREE each person should carry a backup. The Amex product is advertised/sold as a way to track your expenses by putting EVERYTHING on the card. Large families and business are similar. It causes accounting nightmares and a switch is difficult. The United State Government does not even issue a backup card. Many people do not want a lot of card products. People like me may be in the Flyertalk hall of shame because they pass on free mile opportunity because it is not worth the accounting trouble to spend $750 on a different card for 30,000 miles
Last edited by Centurion; May 21, 2010 at 12:36 pm
May 21, 2010, 12:43 pm
#132
FlyerTalk Evangelist
Join Date: Aug 2001
Programs: DL GM, AA Gold, Hilton Diamond, Bonvoy Plat
Posts: 12,171
<sigh>. There's a fee free ATM at every Costco checkout, for the very purpose of paying for your purchases. But that's beside the point.
I'm advocating not being a victim. There are no guarantees in life. Cards can be shut off at any time due to any reason: fraud detection, compromised merchant databases, F/R's - lender skittishness, etc. You can get robbed, or simply lose or forget your card at the last place you used it!
Besides, the concept of only carrying an Amex is flawed. Many merchants do not accept Amex in the US, it's worse abroad.
So you can worry about the 1% chance of being in an F/R situation, or you can live your life. Use your Amex. Don't do stupid things like paypal funds to a authorized user. Don't churn coins. Carry a backup (or three).
And if an F/R or any other unlikely incident happens, don't be a victim. Use your backup. And if you "fail" the F/R, face facts. Its 2010 and times have changed.
I'm advocating not being a victim. There are no guarantees in life. Cards can be shut off at any time due to any reason: fraud detection, compromised merchant databases, F/R's - lender skittishness, etc. You can get robbed, or simply lose or forget your card at the last place you used it!
Besides, the concept of only carrying an Amex is flawed. Many merchants do not accept Amex in the US, it's worse abroad.
So you can worry about the 1% chance of being in an F/R situation, or you can live your life. Use your Amex. Don't do stupid things like paypal funds to a authorized user. Don't churn coins. Carry a backup (or three).
And if an F/R or any other unlikely incident happens, don't be a victim. Use your backup. And if you "fail" the F/R, face facts. Its 2010 and times have changed.
May 21, 2010, 12:54 pm
#133
Join Date: May 2002
Location: Arizona
Posts: 5,693
Banks set ATM withdrawals limits. I am sure you have heard all the Costco jokes about how hard it is to walk out of Costco without spending less than $500. The Costco in Scottsdale AZ has the one of highest sales per store in the USA so in Canada it could be different.
You are argument is from a single person point of view. I am talking about families, couples, businesses that are run like a business. You ignored the fact that Amex advertises sells promotes their products to be used for everything.....Countless advertisements tellling you to estentially put everything on your Amex. So getting back to the point of FR not being warranted I agree with this guy Harlem....
Originally Posted by Harlem
Here are some parameters.
First - if a guy walks into Costco thinking he has $200K of availability and is current on his payments of all 12 of his AMEX cards. Don't freeze his accounts.
Next - if a guy pays off his balance every month (even on credit cards) and there are no negative changes in his credit score then no FR.
Next - if a guy has never used more than 1/3 of his total availability (and his credit score hasn't changed) then no FR. (You reviewed him enough to give him the credit in the first place so don't back out on him now).
You are argument is from a single person point of view. I am talking about families, couples, businesses that are run like a business. You ignored the fact that Amex advertises sells promotes their products to be used for everything.....Countless advertisements tellling you to estentially put everything on your Amex. So getting back to the point of FR not being warranted I agree with this guy Harlem....
Originally Posted by Harlem
Here are some parameters.
First - if a guy walks into Costco thinking he has $200K of availability and is current on his payments of all 12 of his AMEX cards. Don't freeze his accounts.
Next - if a guy pays off his balance every month (even on credit cards) and there are no negative changes in his credit score then no FR.
Next - if a guy has never used more than 1/3 of his total availability (and his credit score hasn't changed) then no FR. (You reviewed him enough to give him the credit in the first place so don't back out on him now).
May 21, 2010, 3:12 pm
#134
Join Date: Jan 2007
Posts: 206
I simply dont care about financial review by AMEX. I think they are also opportunistic in nature. I have fairly decent credit and was applying for a Zync card (because it looked cool :P) and amex wanted the whole review to approve it. But they were willing to "upgrade" me to a plat card with out any of the hassle because i used to have it till a year ago. All this makes me think that they just to do it to get rid of the customers whom they dont want.
Luckly there are enough alternatives out there in the real world, so that you dont have to put up with them. I told them thank you and moved to fidelity amex card which was approved with zero hassle. And has all the same benifits or 90% there.
Luckly there are enough alternatives out there in the real world, so that you dont have to put up with them. I told them thank you and moved to fidelity amex card which was approved with zero hassle. And has all the same benifits or 90% there.
May 21, 2010, 3:57 pm
#135
FlyerTalk Evangelist
Join Date: Aug 2001
Programs: DL GM, AA Gold, Hilton Diamond, Bonvoy Plat
Posts: 12,171
Banks set ATM withdrawals limits. I am sure you have heard all the Costco jokes about how hard it is to walk out of Costco without spending less than $500. The Costco in Scottsdale AZ has the one of highest sales per store in the USA so in Canada it could be different.
You are argument is from a single person point of view. I am talking about families, couples, businesses that are run like a business. You ignored the fact that Amex advertises sells promotes their products to be used for everything.....Countless advertisements tellling you to estentially put everything on your Amex. So getting back to the point of FR not being warranted I agree with this guy Harlem....
Originally Posted by Harlem
Here are some parameters.
First - if a guy walks into Costco thinking he has $200K of availability and is current on his payments of all 12 of his AMEX cards. Don't freeze his accounts.
Next - if a guy pays off his balance every month (even on credit cards) and there are no negative changes in his credit score then no FR.
Next - if a guy has never used more than 1/3 of his total availability (and his credit score hasn't changed) then no FR. (You reviewed him enough to give him the credit in the first place so don't back out on him now).
You are argument is from a single person point of view. I am talking about families, couples, businesses that are run like a business. You ignored the fact that Amex advertises sells promotes their products to be used for everything.....Countless advertisements tellling you to estentially put everything on your Amex. So getting back to the point of FR not being warranted I agree with this guy Harlem....
Originally Posted by Harlem
Here are some parameters.
First - if a guy walks into Costco thinking he has $200K of availability and is current on his payments of all 12 of his AMEX cards. Don't freeze his accounts.
Next - if a guy pays off his balance every month (even on credit cards) and there are no negative changes in his credit score then no FR.
Next - if a guy has never used more than 1/3 of his total availability (and his credit score hasn't changed) then no FR. (You reviewed him enough to give him the credit in the first place so don't back out on him now).
I'm glad you agree with Harlem, and if you follow my advice and carry a network/partner Amex from Citi or Penfed, you'll never have to worry about being stranded in a Costco (or anywhere else for that matter).
You keep coming back to the "no change in his score". The F/R has to be triggered by something. My personal belief is that a negative change on a Experian report caught in their almost monthly A/R reviews and/or unusual spending are the #1 reasons for the F/R.
But it is moot to argue, as we can only guess, and Amex isn't talking.
If you can't pass the F/R, you likely have bigger issues to deal with.