Warning: American Express Financial Investigations Are Now Widespread

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
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Mogul of Pineapples
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Warning: American Express Financial Investigations Are Now Widespread

Postby Mogul of Pineapples » Sun Mar 08, 2009 5:30 am

We have discussed this practice on Credit Card Forum before - American Express financial reviews & investigations - and now it sounds like they have really ramped up this practice.

What happens with the Amex financial review is they will call and you request authorization to pull your tax returns for the previous three years. If you refuse, they will cancel your credit cards and charge cards within 5 days. The worst part is they are outsourcing this practice to India. You have people in India now reviewing your sensitive financial documents, including your Social Security number. Foreign countries like India have different countries on these matters too, making it potentially easier for criminals to access and abuse your information.

The following news report through NBC talks about a cardmember since '89 in perfect standing they did this to:

Don't Leave Home; Your Credit Card is on Hold - NBCSANDIEGO.COM- msnbc.com

If Amex tries this with me, they will be losing a cardmember because I will cancel my accounts instead of giving into this practice.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
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Cucumber
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Postby Cucumber » Mon Mar 09, 2009 3:54 am

I don't blame them. Back in their hay day Amex was giving out like 40 thou credit limits to kids in college. Now they wanna check and make sure they have income to back it up.

But I do agree it's kinda sketchy. If you don't have a balance on your card you should not have to go through that process. I think it should only apply to those with a outstanding balance.
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DGenerateKane
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Postby DGenerateKane » Mon Mar 09, 2009 4:45 pm

Cucumber wrote:I don't blame them. Back in their hay day Amex was giving out like 40 thou credit limits to kids in college. Now they wanna check and make sure they have income to back it up.

But I do agree it's kinda sketchy. If you don't have a balance on your card you should not have to go through that process. I think it should only apply to those with a outstanding balance.


40K for college kids? WTF?

Floppster
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Postby Floppster » Mon Mar 09, 2009 9:56 pm

The entire credit card market needs to get rechecked and I believe that amex not only wants to save themselves trouble but also help our entire society. If the majority of us keeps living beyond their means we will have a way bigger bubble than the one which just blew. Why should your credit limit be as high as your annual income ? I think 15%-20% of your annual income should be the max and only when you have no other loans/mortgages....

BTW I am not getting paid for saying what I say in the first sentence :D
Intellectuals solve problems. Geniuses prevent them.
- Albert Einstein 1879-1955

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Cucumber
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Postby Cucumber » Wed Mar 11, 2009 2:33 am

Yeah but the thing is too is some are using CC's to finance purchases like cars instead of car loans. Or some use it to finance a medical procedure instead of a medical loan. I mean with that said I think it's unfair to compare the credit limits decades ago as a % of income and say they should be the same today. It's a different world b/c we are using credit cards in place of other financing methods now.
OBAMA
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Floppster
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Postby Floppster » Wed Mar 11, 2009 8:40 pm

Cucumber wrote:Yeah but the thing is too is some are using CC's to finance purchases like cars instead of car loans. Or some use it to finance a medical procedure instead of a medical loan. I mean with that said I think it's unfair to compare the credit limits decades ago as a % of income and say they should be the same today. It's a different world b/c we are using credit cards in place of other financing methods now.


1.) Financing a car with a CC is the dumbest thing there is not only because the car looses 50% of its value once you drive it of the lot but because crazy interest rates of a CC is not made for a long time financing plan.

2.) The entire medical disaster is up to the government. However 95% of all doctors offices you visit you'll find some kind of payment plan.

I think our society is using credit cards where we are not supposed to use them. There is nothing wrong with financing a hospital bill however if you just look a little closer you can get that financed at prime + %2.5. If people don't want to look it is their own prerogative !
Intellectuals solve problems. Geniuses prevent them.
- Albert Einstein 1879-1955

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Cucumber
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Postby Cucumber » Thu Mar 12, 2009 1:09 pm

Why is financing a car with a credit card dumb? If you are buying a used car and the best interest rate you can get is 6% or 7% and the APR on your credit card is either a 0% balance transfer intro offer or you have a prime rate credit card with 3.25% standard APR, why would you NOT use that to finance everything??! If it's a purchase you need to finance you want to pay the lowest interest rate it's as simple as that. :cool:

The medical thing yeah I know it's really screwy people should not have to resort to massive debt to pay medical bills. I'm just saying if you have to do it and you can pay a lower APR on your credit card than a medical loan would cost, you might as well put it on plastic.
OBAMA
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AmexTrainer
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Postby AmexTrainer » Thu Mar 12, 2009 2:54 pm

I tried buying a car with my AMEX once. The car was only $15K and I was going to pay cash for it. I figured if I could use my AMEX and get the points then I could use the cash to pay off the card instead. I called AMEX and they said they'd authorize the charge since it was clearly outside of my spending pattern. The dealership wouldn't take it for that much though. They pay too high of a merchant rate I guess. I wound up only putting $3K on the card and the rest of it I wrote a check for.

I wouldn't suggest that anybody ever buy a new car with cash or credit. Just avoid new cars altogether. Seriously... Why would someone want to lose that much of the value right off the bat? The last two used cars I bought could have been sold the next day for more than I paid for them. Buying used is where it is at. Let someone else eat the immediate depreciation. I'll never buy another new car again.

DGenerateKane
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Postby DGenerateKane » Thu Mar 12, 2009 5:11 pm

New cars have nice warranties though. My first car was used and the engine caught fire 3 months later.

AnthonyBarone
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Postby AnthonyBarone » Fri Mar 20, 2009 8:13 pm

Who that would really hurt are the folks like me that are self employed. You know not everyone can show their pay with check stubs and what not. Your credit card payment history at American Express should be good enough. Making this into a big fiasco with proving pay stubs and tax returns is a big mistake. If they do that to me I will tell them to go take a hike and close my cards. I'm a valued customer I shouldn't have to put up with crap like that.



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