Would you accept F/R?

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MemberSince99
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Would you accept F/R?

Postby MemberSince99 » Sun Jun 03, 2012 10:10 pm

I'm just curious, so many people are worried about Amex F/R, if they pick you, what would you say?

Myself, I've decided I'll say no. It's not that I've lied I haven't. I just don't believe that a credit card company, no matter how good, has the right to that information on demand. If they feel I'll default, then by all means close the accounts and we'll both move on.

And for those thinking if you have nothing to hide you have nothing to fear, I say that I don't have a stash of illegal drugs in my home, but that doesn't mean just because I have nothing to hide that I'd care to have the government bash my door down and ransack the place to prove it. It's a bogus argument. My bank knows my income and my assets and they don't demand that information and they extend me more than Amex has, so, that's what I would personally choose. How about you?


NYC_Dweller
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Postby NYC_Dweller » Mon Jun 04, 2012 1:20 am

financial institutes are somewhat less conservative in lending when they have collateral (houses, cars, boats, etc...). my home is worth $2.8m, this is outside investment properties. i know my bank will extend me a large loan if i need one for another investment property. this is because they have collateral.

as for amex, they are entrusting you with a line of credit (cc or charge card). they do not have the ability to recover a lost by foreclosing your house or repossessing your car, boat or plane. this is why it is practically impossible to have a credit line of $2.8m. with that said amex tightens their belt and protects themselves from any out of the ordinary transactions by declining or with the infamous financial review.

if i was flagged for a f/r i would probably submit the paperwork since:

- i have nothing to hide
- i have a healthy checkings/savings
- i file my taxes accordingly
- it will cost me more time/headache to set up a different card (auto pay, card on file, accountant, etc...)
- frankly i enjoy my platinum card benefits

keep in mind that a f/r is not as common as one would think. i'm sure the percentage of card holders that got f/r to actually card members are extremely low. amex declines transactions that they deem out of the ordinary. a lot of factors come into play that triggers a f/r.

MemberSince99
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Postby MemberSince99 » Mon Jun 04, 2012 6:35 am

That kind of leads to another point - that the NPSL (no preset spending limit) is really more of a marketing gimmick than anything. Honestly we ALL have a limit, they just don't tell us what that limit is. I am thinking I'd rather know whether a transaction is going to go through or not before I initiate it but maybe that's just me.

And it is true that they have no asset they can directly seize if you don't pay them but they can (and do sometimes) sue you to recover the money. Obviously it's best for everyone that it doesn't get to that, but I'm sure everyone here knows that.

I'm reading stories of people getting F/R within 2 weeks of opening their account. I don't know what triggers it (if we knew that we could pretty easily avoid it) but it must be something pretty extreme to trigger that within 2 weeks of opening your account with them. You would think if they were going to do that, then why would they open the account at all? As slowly as things change in the credit world (to me it seems like watching paint dry getting my new reports every day - not much ever changes) you'd think what they saw would have been there when they approved the account.

In my case I don't put anything, and I mean NOTHING on autopay - I want control over that (ok so I'm like my boss a control freak at least I'm not cheap like he is!) And I have nothing to hide but that doesn't mean I feel I should have to constantly prove that either - I'm a US citizen but I don't want brownshirts demanding my "papers, please" on every street corner either. I have nothing to hide, which is what everyone says, and ok if you want constant scrutiny to prove that, by all means be my guest, but that's just not my thing.

I'd tell them to take a hike and close the accounts. And honestly I really like Amex, but that is what I'd do. I have other accounts and I would just give them more use and that would be that. It would hurt my credit score due to backdating but I'd live.

Anyway thanks for responding hopefully we never see F/R!

Grupet
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Postby Grupet » Mon Jun 04, 2012 6:52 am

What does F/R mean?
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agp
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Postby agp » Mon Jun 04, 2012 6:59 am

Grupet wrote:What does F/R mean?


+1 I'm curious as well

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MemberSince99
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Postby MemberSince99 » Mon Jun 04, 2012 8:17 am

Grupet wrote:What does F/R mean?


It means "Financial Review". Basically Amex shuts all your cards down immediately (suspends charging) and notifies you that you have 5 days and 2 tries to do the process correctly or they will close your accounts. The process from what I've heard consists of you sending them a form called a 4506-T authorizing them to look at your tax returns and your bank statements.

Even if they like what they see, the typical response is to give you hard limits (maybe this is a good thing....). If they don't, likely they will close your accounts. In the meantime you will be without the use of the cards for a couple of weeks up to a couple of months in the worst case. It costs I believe 57 dollars to do from what I've read.

It's not a fun experience, that's one thing you can be sure of.

I do like Amex, quite a bit, but the way I see it, if they really feel I'm that big of a risk, they can just close me down and that is that. I lived without credit cards for years, and while I'd rather have them for a variety of reasons, I could honestly live without them, but there are other creditors out there and good ones who don't do F/R this way. Just my feeling. Others may feel differently and I can understand that too as I initially probably would have let them do it, but in thinking about it, I think I'd just close the accounts and move on. Life is (and this is just my opinion) too short to have to worry about if a charge is going to be accepted and if you are going to do something that concerns your creditors - give me a hard limit I pay in full every month if you have a problem call me and we'll talk, I can handle that, but this, I could live without.

jeffysdad
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Postby jeffysdad » Mon Jun 04, 2012 8:23 am

I would never agree to that; it's ridiculous. There are plenty of alternatives to Amex, many of them better.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

Grupet
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Postby Grupet » Mon Jun 04, 2012 8:33 am

Thanks for the explanation.
That's just crazy. I love my Amex Platinum, but if that ever happened to me, they can just close my account. There is other alternative out there.
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bmw1990Z
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Postby bmw1990Z » Mon Jun 04, 2012 11:42 am

I mean I haven't looked into it but shouldn't you have nothing to worry about as long as you have proof of your finances and a truthfull application?
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Cyberius
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Postby Cyberius » Mon Jun 04, 2012 12:36 pm

bmw1990Z wrote:I mean I haven't looked into it but shouldn't you have nothing to worry about as long as you have proof of your finances and a truthfull application?


For me I guess it would depend on my mood the day it happened and how I found out. If I was given notice they were going to review my account, I wouldn't be terribly upset. However, if I'm traveling and depending on the card, I would be rather irritated. If you have a shoddy account history one shouldn't be terribly surprised to get a F/R. However, if I have made all payments and have been a loyal customer, to cut you off could be embarrassing, especially if you are paying for dinner for a client and your card is declined and you had no notice.

If you don't lie on your application you shouldn't be worried about providing more information - I mean, they have pretty good insight into your life due to the credit pull and general usage of the card (location, items purchased, travel habits, etc.).



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