American Express Denies 'Amex Recession' Theory Amid Viral Credit Limit Cuts

A viral trend on social media claims that American Express is cutting credit card spending limits due to concerns about an impending recession. The 'Amex recession' theory started with a TikTok video posted by Kevin Kunze, who claimed his credit limits were slashed without warning.

Kunze has nine American Express business credit cards and had previously been able to spend freely on them. However, he recently found that some of his cards had preset spending limits set at $100,000 or $250,000 per month, down from unlimited spending in the past.

Kunze's video was viewed over 2 million times, and others soon followed with similar claims about their own American Express credit card limits being cut. However, an American Express spokesperson rejected the claim that the company is broadly cutting credit limits due to recession concerns.

The bank stated that it regularly reviews Card Member accounts and may adjust credit limits based on various factors as part of its normal course of business. Kunze himself has come to doubt the 'Amex recession' theory, pointing out that American Express's financial disclosures show low credit card defaults and delinquency rates.