Taking On American Express
Taking On American Express Save Email Print
Restaurant owner fights back after credit limit cut
Posted: 6:50 PM Oct 31, 2008
Last Updated: 6:50 PM Oct 31, 2008
Reporter: Roger Hamer
Email Address: sixonline@wowt.com

A | A | A

Most credit card companies offer services aimed at helping small businesses, though the terms usually tilt in the credit card company's favor. A local businessman was shocked when his credit limit was cut without any notice.

Ron Olson believes in customer service. His restaurant ‘Round The Bend Steakhouse at 310th Street and Highway 66 in Cass County relies on customer satisfaction. If his customers aren't satisfied, he's out of business. Olson just wishes he'd get the same consideration.

"We do a lot of credit card business. It's about 50-50 with cash and credit cards. If you don't take credit cards, you're not going to get all the business you should have."

He used to use an American Express business credit card for purchases for his steakhouse. "We went to put a purchase on it and low and behold it didn't go through. I’m like, what's the deal? Because we had a pretty good limit on it and it wasn't nearly extended."

So Olson called the company. He was told a credit monitoring service gave him a low rating. "And due to their report on you, we decided to lower your credit limit. And I said, oh, really. I happen to know my credit card raiting just went up."

Olson said he’s never missed a payment and usually pays the balance in full. His credit limit was cut in half without notification.

"So I told her, I said you folks can run your business any way you like. Far be it from me to tell you how to do it. But by the same token, I can run mine any way I want to."

He's no longer accepting American Express from his customers. Olson said his one-man protest has not affected his customers. He knows American Express won't go broke from his actions. He’s just fighting back the only way he can and has a word of advice for his customers.

"If you're coming to 'Round The Bend, leave your American Express card at home."

Channel Six News tried to contact American Express to find out why they reduce credit card limits without notification. A phone message told us they were “experiencing technical difficulties."

More Stories
Fireworks Injury Victim Warns Others

Holiday Weekend Fireworks Displays

Rain Doesn't Deter Rosenblatt Crowd

Protecting Pets Over The Fourth

Amnesty Day To Surrender Fireworks, Guns, Ammo

More Troopers Watching Nebraska Roads This Weekend

Audit Reveals State Patrol Lost $696,000 In Equipment

Two Men Shot During Argument

Post Your Comments
First Name:
Location:
Enter Comments: characters left
Email (optional):
By posting this comment I have read and agree to the Terms of Use and Privacy Policy:
You must agree to the Terms of Service to continue.
Read Comments
Comments are posted from viewers like you and do not always reflect the views of this station.
Posted by: Peter on Dec 17, 2008 at 04:14 PM
I think it is time for the consumer to have a credit card non pay back revolt..After all, the credit card companies need us more than we need them..They get free money from the bail out due to bad investments they have made..Then the tax payer foots the bill, while they continue to charge the consumer exhorbanant interest rates..Money is worth nothing at the present with the Feds only charging.25% for banks to loan money to each other..Try get your credit card interest rate lowered, and one is told that they are unable to due so at this time..The credit card companies are fraudulent at best and AMEX is the worst abuser of them all..They do not care for the consumer nor the American people or the economy..Their policies run counter to what is being ask for consumer confidence..I have no confidence in AMEX and will not pay them any more money..Now I have my own bail out from AMEX in the same vain they screwed the American people out of money and loop holes to pay their incompetent bonuses

Posted by: Peter on Dec 17, 2008 at 04:04 PM
A RANT regarding AMEX..Am.Express is the new grinch..I have a 747 credit score and they say I'm a risk, so like others, they lowered my credit limit from $45k to 13K..However, they have a loop hole in the Bail Out so that they can hand out large bonuses to their incompetents and screw the consumer by lowering their credit line and the tax payer to bail them out..So now I must be a poor consumer..As their representative said over the phone, the "Powers" of AMEX can do what ever they want to do after they review accounts..This goes against the grain of what is being asked of the American consumer/confidence..I've never been late on a fee, hence my credit score..Now I'm an at-risk bad consumer as viewed by AMEX..A self-fullfilling prophecy I must follow through on and stop making minimum payments to AMEX altogether..After all, credit cards are unsecured debt..This is my Bail Out from AMEX..They said I didn't pay enough over my minimum to keep my credit line...Now I won't pay them anything.

Posted by: a dude on Dec 6, 2008 at 06:38 AM
yeah i happen to know that he probably never missed a payment per se, but he probably had instances where he was past due and carrying an extended payment option over a long period of time which caused the 6 month avg pymt history to not be able to support the 6 month avg balance. on top of that if he is so right, why doesn't he show us the proof of his FICO score going up by publicly posting his credit reports before and after the limit cut? probably because he's just a bitter guy that knows he was at fault

Posted by: Michele on Nov 19, 2008 at 12:32 PM
We should all stop using American Express. They are screwing all of their customers. I had an AE Blue card since 1991. Never late on a payment. Recently I used two of the balance transfer checks they sent to me. They did not honor them, even though I had $20,000.00 available. They decreased my credit limit to my outstanding balance of $5,000.00. No notice at all. Now I'm paying bounced check fees because of American Express.

Posted by: Rob on Nov 1, 2008 at 09:56 AM
American Express sucks

Posted by: Rob on Nov 1, 2008 at 04:39 AM
What? This is not even close to a new story!! The banks will not loan to another bank what makes the customer a better credit risk? A business owner should know what the credit markets are doing!

Posted by: Jerry on Nov 1, 2008 at 01:48 AM
As a business owner, we stopped accepting American Express because their merchant rates for the business are nearly double those of Visa, MC, and Discover. For a company that caters to businesses, why would they punish businesses for accepting their card?

Posted by: John Smith on Oct 31, 2008 at 10:45 PM
I used to do selling for American Express cards. I hated it. If you want customer server don't go through them. Half of the time your going to get an out of country person. Also read the fine print on your credit cards, they have a lot of terms and so on to use their cards.

Posted by: Curt on Oct 31, 2008 at 08:20 PM
I was upset with American Express because they had lowered my limit by 75% over the past 3 months and had flat out lied to me trying to justify their actions. As a small business I have used American Express as my working capital over the past 10 years, so their reduction in my working capital was a real slap in the face and really hurt. At first I took it real personal and thought they were picking on me but have since learned that they are doing this to most of their customers. In September alone they lowered the credit limits of 20% of their card holders and day by day they are doing it to more and more. If you have some extra time and want to be stunned, Google “American Express credit limit” and you too can read horror story after horror story. This is happening to most all American Express card holders and they are lied to as to why it is happening.

Posted by: D on Oct 31, 2008 at 05:39 PM
I have never been to this restaurant before, but will be glad to stop in when I am in the area. Shameful practices by banks.

Posted by: Anonymous on Oct 31, 2008 at 05:16 PM
Good for you Mr. Olson! Credit card companies like to pull this one a lot. I'm glad you're fighting back -- even if it won't "hurt" them now, if you tell people why you no longer take the card it sure doesn't "help" them.

Posted by: Same here on Oct 31, 2008 at 05:11 PM
Bank of America (used to be MBNA) dropped my credit limit from $12K to $6K citing "lack of use" as their reason. Their action dropped my FICO thru one agency 70 points. I told them to close my card entirely so they couldn't inflict any further damage. These companies are adding fuel to the fire of an already dangerous credit crunch because an action to protect themselves is perceived by computers as a negative action on our credit ratings. I may not have needed their $12k credit, but what if I wanted to buy a new car or house? With a lower credit score thanks to Bank of America it will impact my interest rates where I could be stimulating the economy elsewhere.

Posted by: Rick on Oct 31, 2008 at 04:59 PM
yay to the lil guys! the credit card industry seriously needs to have their practices investigated also by the government...

Channel 6 News Features