AMEX CLI after Financial Review

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zorbachs
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AMEX CLI after Financial Review

Postby zorbachs » Mon Jan 26, 2015 3:15 pm

About 10 months ago, I was "selected" for a FR by amex. At the time, I was in law school and was making very little income, around 3k per year, and drawing 45k a year from my trust fund to pay for school and living expenses. I had reported 5k worth of income and over $1 million in assets due to the trust.

After two weeks and a lot of back and forth, my cards were unfrozen and I received no decreased CLs on my blue cash card and no limits on my PRG card. AMEX changed my income to 45k and 0k in assets on my account.

I just started working this year and would like to increase the 3k limit on my Blue Cash card, but I am gun shy to request a CLI for fear I will trigger another FR. My 2014 tax returns are from my days as a student and would again not show a lot of income. I am not sure how the trust income is reported.

Has AMEX been known to FR someone for requesting a CLI after they had been cleared in a FR less than a year prior? I'd like to try for a CLI, but I don't want to have to go through another FR where my cards are shut off for another 2 weeks.


Battery111
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Postby Battery111 » Mon Jan 26, 2015 8:09 pm

Trust income should be in your tax return. Depending on whom the tax liability falls with, it's reported different ways. If the tax liability for your share of the trust's earnings falls on you, it will be reported on a schedule K1. If not I BELIEVE but may be mistaken that the income would be reported on a 1099.
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CarefulBuilder14
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Postby CarefulBuilder14 » Mon Jan 26, 2015 9:58 pm

If you don't control when and how you spend the money, then it might not be yours to rely on as far as Amex is concerned. A trustee might approve a $45k distribution for tuition and basic expenses, but not that same $45k for a nice vehicle. If you bought a $45k car on a PRG and the trustee refused to give you the money when you needed to pay Amex, then Amex would have a problem.

For whatever value it has, my online Amex profile reflects my stated income, but not my stated assets. Amex has never verified either, and I have complete control over my assets.

As to whether/when/where the trust income should appear on your personal tax return, I am not going to get into that. Trusts can be really complicated, and you should speak to the trust attorney or someone else who has read and understands the trust documents.
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zorbachs
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Postby zorbachs » Tue Jan 27, 2015 12:15 am

I don't know what my tax returns showed either. Amex changed my income to 45k, but then it reset to 0k on new years, and my profile recently asked me to update my income information.

Maybe it's best for me to leave it alone right now until I have a year of working under my belt and if they FR me again, my records will match my reported income.

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Postby takeshi » Tue Jan 27, 2015 9:44 am

zorbachs wrote:My 2014 tax returns are from my days as a student and would again not show a lot of income.

Even if your 2014 returns showed a lot of income they wouldn't be available via transcripts for consideration until August/September of this year. Did your prior FR not involve the 4506-T? This is indicated on the instructions.

zorbachs wrote:Has AMEX been known to FR someone for requesting a CLI after they had been cleared in a FR less than a year prior?

No idea. There's so much fear and misinformation around FR's that it's difficult to discern any useful information on the topic. Income verifications aren't uncommon with CLI's but I'm not sure I've seen anyone get an FR as a result of a CLI (not that what I've seen is of any statistical significance).

zorbachs
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Postby zorbachs » Tue Jan 27, 2015 12:39 pm

Takeshi, yes, I had to send in the 4506 T to allow them to access my tax returns when I was FR'd last April. As I said, nothing came of it, they unfroze my cards and I did not receive any penalties or limitations.

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Postby flan » Tue Jan 27, 2015 8:23 pm

zorbachs wrote:Takeshi, yes, I had to send in the 4506 T to allow them to access my tax returns when I was FR'd last April. As I said, nothing came of it, they unfroze my cards and I did not receive any penalties or limitations.


do you have other cards? Do the limits on them reflect your new income?

If you don't, or the limits haven't gone up, get some or get some reasonably high limits and let them report. Once that's happened, I'd ask for a CLI.

zorbachs
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Postby zorbachs » Wed Jan 28, 2015 1:47 am

flan wrote:do you have other cards? Do the limits on them reflect your new income?

If you don't, or the limits haven't gone up, get some or get some reasonably high limits and let them report. Once that's happened, I'd ask for a CLI.


I am an authorized user on a card with a 23k limit and another amex charge card without a limit. I also have a Chase Freedom with a 5k limit and a Citi thank you with a 9k limit. The cards where I am the main account holder do not reflect my new income. I haven't changed anything since the days when I was a student.



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