How can Amex allow 10k charges on Optima with $1300 limit?

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Bank of Mom
 
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How can Amex allow 10k charges on Optima with $1300 limit?

Postby Bank of Mom » Wed Sep 06, 2017 12:56 am

:mad: I really need some advice. I'll try to keep this short and to the point.
My adult son needed a cc in order to rent a car. He's not very responsible and has a crummy credit score. I have an Optima card that has a limit of only $1300 that I wasn't using and considered adding him to that acct with a card in his own name. However, because I know how sneaky he can be, I called Amex and explained that I was considering adding him to that acct HOWEVER, I wanted to be CERTAIN that the limit WOULD NOT be increased. The rep assured me that it WOULD NOT be increased unless I personally requested it.
I asked him several times during this conversation if he was sure that it would not be increased. Every time he assured me that it would not.
Fast forward- I tried to pay a $1400 invoice for my car's service with my personal Platinum and the charge was declined! So embarrassing. I called Amex and they inform me that ,"due to the large amt over my Optima credit limit, they placed a hold on my platinum and the business platinum as well". I check my amex app and find a charge for over $6800 from Avis car rental.
I called back and a young man tells me that it was only supposed to be a "hold" and not a charge and that he really doesn't know why the large amt went through. I was livid when I found ANOTHER charge for just under $3000 from another car rental agency!
I called numerous times (at least 5 times) and NOBODY from Amex could explain how this happened. I filed a dispute on the charges.
Finally, a woman called me and said that those high charged would normally NEVER be approved UNLESS it is a car rental hold. HUH??? She said that the initial hood was for $350. I would have expected the car agency would have had to place another hold once that $350 was exceeded, right?
Anyway, I told her that I truly hoped that they really do record calls so that she could listen to my call asking specifically if there were ANY way that the limit WOULD be increased. Had the rep told me that a car rental hold could increase the limit, I NEVER would have authorized the card for my son.I relied on their representative to give me accurate information and had he not been positive about the policies, he should have transferred my call to someone who knew.
Amex is saying that I am now responsible for the 10k.
PLEASE, PLEASE, if anyone has had a situation similar to mine or has any advice: I sure would appreciate it. I'm considering contacting my attorney tomorrow, but would love some input here. Sorry for the long rant and if you've read all the way to this point -Thank you.


augiedog
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Re: How can Amex allow 10k charges on Optima with $1300 limit?

Postby augiedog » Wed Sep 06, 2017 3:08 pm

Wow, those are expensive rental charges. How old is he? You need a receipt of that bill. I can't imagine why it's so expensive. Did he wreck the car? That should be covered by the rental insurance on your card.

Amex does have a tool for authorized users. You can set a spending limit on authorized users regardless of what your credit line is or what your over-limit line is.
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CarefulBuilder14
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Re: How can Amex allow 10k charges on Optima with $1300 limit?

Postby CarefulBuilder14 » Wed Sep 06, 2017 5:51 pm

augiedog wrote:Wow, those are expensive rental charges. How old is he? You need a receipt of that bill. I can't imagine why it's so expensive. Did he wreck the car? That should be covered by the rental insurance on your card.

Amex does have a tool for authorized users. You can set a spending limit on authorized users regardless of what your credit line is or what your over-limit line is.

Amex has two tiers of rental insurance, and policies vary by state. In most cases, at least for rentals within the USA, coverage is secondary unless you opt into the premium tier and pay a per-rental fee.
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swipe_masta
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Re: How can Amex allow 10k charges on Optima with $1300 limit?

Postby swipe_masta » Thu Sep 07, 2017 8:21 pm

Tell me if I'm wrong, but a CLI is different from over the limit charges... So technically, they did not increase your credit limit, it's just that the rental charges were more than your limit. If anyone's to blame, it's your son. You did not ask if Amex had any guidelines for car rental charges, you simply made sure that your son could not ask for CLIs, which he did not.

I suppose the reason why Amex allows car rental charges to be over the limit of any given card is in case of emergencies. I can't really blame them for that. I doubt an attorney could help, especially when your son knowingly made those charges. Have you talked to your son about this?

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lobbythis
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Re: How can Amex allow 10k charges on Optima with $1300 limit?

Postby lobbythis » Fri Sep 08, 2017 5:03 am

umm did he wreck/steal the friggin cars? this story is missing a few pieces. you dont randomly get charged or even temporary holds that large unless you are renting exotic cars like bentley, ferrari, etc.........................

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Re: How can Amex allow 10k charges on Optima with $1300 limit?

Postby Bank of Mom » Sun Sep 10, 2017 11:29 pm

swipe_masta wrote:Tell me if I'm wrong, but a CLI is different from over the limit charges... So technically, they did not increase your credit limit, it's just that the rental charges were more than your limit. If anyone's to blame, it's your son. You did not ask if Amex had any guidelines for car rental charges, you simply made sure that your son could not ask for CLIs, which h
I suppose the reason why Amex allows car rental charges to be over the limit of any given card is in case of emergencies. I can't really blame them for that. I doubt an attorney could help, especially when your son knowingly made those charges. Have you talked to your son about this?


Actually, I did speak to our attorney and he said that they should not have increased the limit. Also, I was very specific when asking whether or not the limit could be increased. I even told them that I was considering giving him the card because of the car rental.



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