AMEXAT19 wrote:Luvbullmarkets, I could simply pay the full balance of roughly $2500 but I feel like I should get something for my money such as regaining membership and plus I lost a lot of MR point (23,000) so lots of sky miles. I could careless if they charge it off in my opinion if they aren't will to work with me in my terms because it's going to take 7-10 years for the BKbto fall off and the charge off can just take that time to.
CarefulBuilder14, AMEX sold my debt to FSA, originally I settled with FSA for less than half and then decided not to proceed, months later AMEX started sending me letters to settle through FSA exactly half of the amount in 12 installments
I would not expect a simple arrangement of "full payment in exchange for immediate readmission" to appeal to Amex. It is true that Amex will probably give you a card sometime in the future, since $2500 is a relatively small sum, but you could quite possibly end up waiting a decade or longer. Anecdotally, the lifetime bans seem to be reserved for much larger losses. The ban might be shorter if you pay something or everything now.
If they give you a card in the future, they may ask you to pay the old balance. They may not explicitly say that you need to pay the old debt if you want to have an account with them, but I've gotten the impression that it's "protection money" from having your account closed for no good reason in the future. I'm not exactly sure how accurate an impression that is, and would appreciate the experience of others.
If you want to have a card with them in the future, I'd pay in full now. The income tax due shouldn't be too onerous, though, if some of the debt is forgiven. The debt might not meet one of the requirements to exclude it from your income, but it's just ordinary income and there's no separate IRS penalty. So the taxes should be a lesser consideration.
There are no guarantees, but I expect Amex will look more favorably on you in the future if you pay now, rather than withholding all payment from them until they are willing to readmit you. Paying what you can says you're trying to be financially responsible. Trying to force Amex to give up something (instantly readmitting you) suggests less responsibility and more risk for them. After all, you have a recent bankruptcy and already departed from the original FSA settlement to which you agreed.