American Express Cuts Spending Limits on High-End Cards Amid Recession Fears

American Express has been limiting the spending capacity of some of its high-end credit card holders, sparking concerns about an impending recession. Influencer Kevin Kunze, who uses American Express for his various business ventures, claims that he was suddenly restricted from spending large amounts on his cards after years of consistent payments.

Kunze's experience has led to a flurry of viral social media content, with many users suggesting that the company is tightening credit limits in anticipation of economic downturn. However, American Express denies this claim, stating that it regularly reviews card member accounts and adjusts credit limits as part of its normal business practices.

Brian Riley, a director of credit advisory services at Javelin Strategy & Research, notes that American Express prioritizes 'credit hygiene', which involves reviewing customers' spending habits and credit limits to mitigate risk. This approach is not unique to the company and is shared by other top issuers like Citi and Chase.

Kunze himself seems skeptical about the recession theory, pointing out that low credit card defaults indicate a stable economy.